The key findings from the Major Labour Costs survey conducted in respect of the 2015-16 financial year are presented below.
Total labour costs incurred by employers during 2015-16 were $760.9 billion. Employee earnings accounted for 87.3% of total labour costs. Superannuation was the next largest component of total labour costs at 8.0%.
1. Major labour costs, sector, 2015-16
| Earnings | Superannuation | Payroll Tax | Workers' Compensation | Fringe Benefits Tax | Total Labour Costs | |
|---|---|---|---|---|---|---|
| $m | $m | $m | $m | $m | $m | |
| Private Sector | 517,259.6 | 45,015.9 | 18,336.4 | 8,148.5 | 2,598.5 | 591,359.0 |
| Public Sector | 147,296.5 | 15,872.2 | 3,501.9 | 2,490.7 | 420.4 | 169,581.7 |
| Australia | 664,556.2 | 60,888.1 | 21,838.3 | 10,639.2 | 3,018.9 | 760,940.6 |
Total labour costs for the private sector accounted for 77.7% of the labour costs for all employers. Total labour costs for the public sector were 22.3% of the labour costs for all employers. Public sector organisations include Commonwealth and state/territory government organisations, local government authorities, public corporations, universities, non-profit institutions controlled by the government, government marketing boards, legislative courts, municipal authorities and other statutory authorities.
2. Major labour costs, states and territories, 2015-16
| Earnings | Superannuation | Payroll Tax | Workers' Compensation | Fringe Benefits Tax | Total Labour Costs | |
|---|---|---|---|---|---|---|
| $m | $m | $m | $m | $m | $m | |
| New South Wales | 219,074.2 | 19,468.3 | 7,546.5 | 3,654.3 | 1,072.2 | 250,815.4 |
| Victoria | 159,580.7 | 14,346.0 | 5,377.6 | 2,478.0 | 735.7 | 182,518.0 |
| Queensland | 120,562.3 | 11,505.4 | 3,538.4 | 1,588.4 | 476.3 | 137,670.9 |
| South Australia | 40,326.8 | 3,760.3 | 1,079.7 | 891.3 | 128.1 | 46,186.1 |
| Western Australia | 88,992.1 | 7,838.9 | 3,302.0 | 1,317.0 | 449.1 | 101,899.1 |
| Tasmania | 10,648.2 | 1,043.0 | 319.5 | 214.8 | 26.9 | 12,252.4 |
| Northern Territory | 7,941.7 | 729.5 | 283.8 | 132.4 | 48.9 | 9,136.2 |
| Australian Capital Territory | 17,430.3 | 2,196.7 | 390.8 | 363.0 | 81.6 | 20,462.4 |
| Australia | 664,556.2 | 60,888.1 | 21,838.3 | 10,639.2 | 3,018.9 | 760,940.6 |
Earnings
Earnings, which includes gross wages and salaries, the ungrossed value of fringe benefits, and severance, termination and redundancy payments, is the largest component of labour costs. During 2015-16, earnings totalled $664.6 billion (87.3% of total labour costs).
Superannuation
The value of employer superannuation contributions paid on behalf of employees in Australia was $60.9 billion, or 8.0% of total labour costs.
When comparing across states and territories, the Australian Capital Territory had the highest superannuation costs as a proportion of total labour costs (10.7%). The Australian Capital Territory has a larger proportion of Commonwealth employees, many of whom receive higher superannuation entitlements.
Payroll tax
Payroll tax paid by employers totalled $21.8 billion, representing 2.9% of total labour costs. The private sector accounted for 84.0% of total payroll tax, and the public sector 16.0%.
As a proportion of total labour costs, payroll tax was highest in Western Australia (3.2%) and lowest in the Australian Capital Territory (1.9%).
Workers' compensation
Workers' compensation costs during 2015-16 were $10.6 billion, representing 1.4% of total labour costs.
As a proportion of total labour costs, workers' compensation costs were highest in South Australia (1.9%) and lowest in Queensland (1.2%).
Fringe benefits tax
Fringe benefits tax paid by employers during 2015-16 totalled $3.0 billion, representing 0.4% of total labour costs.
Fringe benefits tax as a proportion of total labour costs ranged from 0.2% in Tasmania to 0.5% in the Northern Territory.