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Maintaining Optimal Frame Coverage using Administrative Data
Having businesses that are no longer operating or businesses that are out of scope of our surveys on our frames reduces sampling efficiency. The ABS uses administrative taxation data to identify and remove from frames such businesses. The main criterion in determining long term non-remitters is that businesses have not remitted taxation data for the last five consecutive quarters. One reason why five consecutive quarters was chosen was because some businesses only need to provide the Australian Taxation Office with taxation data on an annual basis.
As the ABS uses a technique that reduces overcoverage, there is actually a chance that in scope operating businesses are removed in error. The main reason for this error is that some businesses are late in providing taxation data to the Australian Taxation Office.
An investigation conducted by the Victorian Methodology Unit looked into whether having a five quarter non-remittance period was sufficient to determine long term non-remitters. It was concluded that extending the non-remittance period beyond five quarters would result in fewer businesses being incorrectly identified as non-remitters. However, it would also lead to a reduction in the number of ‘true’ long term non-remitters identified, resulting in increased sample error. As the increase in sample error outweighed the benefits from reducing the error due to undercoverage, a decision was made to stay with the five quarter non-remittance period.
For more information, please contact: Rosslyn Starick on 03 9615 7689.
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