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The remainder of the chapter presents statistics for a selection of service industries. The information provided is based primarily on the rotating program of service industries collections conducted by the ABS. The exceptions are the retail trade and wholesale trade industries where information has been drawn from the monthly and quarterly sales collections respectively.
20.4 QUARTERLY CHANGE IN RETAIL TURNOVER, Chain volume measures(a):
As shown in table 20.5, the annual original chain volume measures of Australian total retail turnover increased from $119,200m in 1991-92 to $171,436m in 2002-03, an increase of 44% representing an average annual rise of 3.4%.
During this period, the strongest three years of annual growth occurred in 1994-95 (5.7%), 1999-2000 (5.5%) and 2001-02 (5.3%). The three periods of weakest growth occurred in 1992-93, (0.2%), 2000-01 (0.5%) and 1996-97 (0.6%). For the most recent year, 2002-03, there was 4.6% growth. Growth in 2000-01 was considerably lower, but was affected by the unusual increase in the volume of goods sold prior to the introduction of TNTS on 1 July 2000 and the subsequent decline in the volume of goods sold.
The industry group representing the largest component of retail turnover in 2002-03 was food retailing with 40%. The next largest industry was hospitality and services with a 16% share of total turnover in 2002-03, followed by household good retailing with a 14% share of total turnover.
A comparison of the share of retail turnover held by the industry groups in 1991-92 and 2002-03 shows that two industry groups increased their shares, namely household good retailing by 6.4 percentage points and other retailing by 2.0 percentage points. In contrast, five industry groups decreased their shares, namely food retailing (-4.8 percentage points), hospitality and services (-2.2 percentage points), recreational goods (-1.4 percentage points), department stores (-1.1 percentage points) and clothing and soft good retailing (-0.7 percentage points).
The wholesale trade industry covers those businesses involved in the sale of new or used goods to businesses or to institutional (including government) users.
Along with the retail trade industry, the wholesale trade industry is a significant component of the Australian economy and provides a key indicator of economic activity.
As shown in graph 20.6, the quarterly changes in the trend chain volume measures of Australian total wholesale sales by private businesses reflect the sustained growth this industry has experienced. Since 1993 there have only been five quarters of negative growth in wholesale sales.
In the period June quarter 1993 to June quarter 1995 all quarters recorded growth in wholesale sales, with the largest increase (4.6%) in the June quarter 1994. In 1996 growth in wholesale sales was lower and averaged 0.6% per quarter, but growth was stronger in the period from March 1997 to June 1999, with average quarterly growth of 2.4%. A break in the series occurred between the June and September quarters 1999 as a result of the inclusion of three significant privatised marketing authorities. After declining in the June, September and December 2000 quarters, the following nine quarters from March 2001 to March 2003 recorded growth in wholesale sales averaging 1.5% per quarter.
The series rose from $33,701m in the March quarter 1993 to $54,257m in the June quarter 1999, an overall increase of 61% representing average growth of 1.9% per quarter. Following a series break between the June and September quarters 1999, wholesale sales by private business rose from $56,730m in the September quarter 1999 to $66,650m in the March quarter 2003, an overall increase of 17% representing average growth of 1.2% per quarter.
20.6 QUARTERLY CHANGE IN WHOLESALE SALES, Chain volume
Private medical practitioners
The ABS conducted its second survey of medical practitioners working in private practice during 2002. Results showed that there were 29,377 medical practitioners operating in Australia, of which 18,867 were general practitioners and 10,509 were specialists. Most of these medical practitioners (94%) worked in only one private medical business. Private practice medical practitioners worked an average of 50 hours per week, with general practitioners (GPs) working an average of 47 hours per week, compared with 54 hours per week for specialists.
Some 67% of the 18,867 GPs were males. Most GPs were aged between 35-54 (62%), and a further 28% being aged over 54. In a normal working week, GPs worked an average of 47 hours per week, with 40 of these hours being spent on private patient activities. GPs had an average of 136 private patient contacts per week, with 22% of GPs having 200 or more private patient contacts a week (table 20.7).
GPs working in rural and remote areas tended to work longer hours than their metropolitan counterparts. Practitioners in metropolitan areas worked an average of 46 hours per week, compared to 52 hours per week by GPs in rural areas and 57 hours per week in remote areas. In rural and remote areas, 40% of GPs worked 60 hours or more in an average week, compared to 26% of GPs working the same amount in metropolitan areas.
During 2002, there were 10,509 specialists working mainly in private practice, 9,071 (86%) of whom were males. The largest number of specialists worked in the specialties of surgery (2,367 persons), internal medicine (2,231 persons), anaesthesia (1,299 persons) and psychiatry (1,192 persons). In terms of age, 28% of specialists were less than 45 years old, 33% aged between 45-54 and 39% aged 55 years and over (table 20.8).
Specialists mainly working in private practice worked an average of 54 hours per week, with 39 of these hours being spent on private patient activities. The specialties recording the highest average of total hours per week were surgery (59 hours per week), obstetrics and gynaecology (59 hours per week) and paediatrics (58 hours per week). Specialists working mainly in private practice had an average of 81 private patient contacts per week, with 2,152 specialists having 100 or more private patient contacts per week.
Selected business services
At 30 June 2002 there were 9,860 accounting practices operating in Australia, representing an increase of 18% since 30 June 1996 (8,389). These practices employed 81,127 persons, of which 46,474 persons were practising accountants (table 20.9).
Small practices (those with one or two principals/partners) accounted for 89% of all accounting practices. However, in terms of total practice employment and income, these small practices contributed 46% and 31% respectively. Although there were only 36 practices with ten or more principals/partners, these practices accounted for 28% of total employment and 43% of total income.
Accounting practices generated $7,708m in income in 2001-02, and incurred expenses of $6,277m. This led to an operating profit before tax for the profession of $1,446m representing an operating profit margin of 18.8%. This operating profit margin was slightly lower than that recorded in 1995-96 of 19.4%.
Income from accounting and other related professional services contributed 98% of total income. As shown in table 20.10, business taxation services generated the largest proportion of income from accounting services (37% of total income), followed by personal accounting and taxation services (18% of total income) and auditing and assurance services (17% of total income).
At 30 June 2002 there were 11,493 practices/organisations operating in the legal profession. These organisations comprised 7,566 solicitor practices, 3,670 barrister practices, 41 patent attorney businesses, 18 government solicitors, 8 legal aid authorities and 191 community legal centres. The legal profession had a total employment of 93,753 persons, comprising 36,124 solicitors and barristers and 57,628 other staff.
The 7,566 solicitor practices represented a 6% rise since 30 June 1999. Employment in solicitor practices increased by 18% over the same period, with 79,258 persons employed at 30 June 2002. Solicitors and barristers (29,159 persons) accounted for 37% of the total employment in solicitor practices, with the remaining employment being articled clerks (2,879 persons), para legals (8,029 persons), patent attorneys (98 persons) and other occupations (39,092 persons) (table 20.11).
During 2001-02, solicitor practices generated $8,379m in income. The main sources of income were from commercial work ($2,074m), property work ($1,756m), and personal injury work ($1,305m). These three fields of work accounted for 61% of solicitor practice income.
Solicitor practices incurred total expenses of $5,914m during 2001-02, with labour costs ($3,233m) being the most significant, accounting for 55% of total expenses. Other significant expenses for solicitor practices were rent, leasing and hiring expenses ($578m), insurance premiums ($204m) and bad and doubtful debts ($150m).
The operating profit before tax for solicitor practices during 2001-02 was $2,485m, an increase of 28% since 1998-99. However, the operating profit margin in 2001-02 was 29.7%, marginally lower than the 31.4% recorded in 1998-99.
Solicitor drawings from operating profit before tax and solicitor wages represented an average return per solicitor of $129,500 for 2001-02.
During 2001-02, 63% of solicitor practices reported doing pro bono work. In total, 1.7 million hours of pro bono work was carried out comprising 692,000 hours on providing legal services without expectation of a fee, 94,000 hours in involvement in free community legal education and/or law reform, 489,000 hours on legal aid cases at a reduced fee or without expectation of a fee, and 415,000 hours providing other legal services at a reduced fee.
At 30 June 2002 there were 3,670 barrister practices in Australia with employment of 5,862 persons. In terms of employment, all barrister practices were small businesses. The average employment per barrister practice was 1.6 persons.
Barrister practices generated $1,146m in income during 2001-02, a 36% rise since 1998-99.
Total expenses of barrister practices during 2001-02 were $387m. The two major expenses were labour costs of $76m and barristers chamber fees of $71m. The operating profit before tax of these practices was $759m, which represented an operating profit margin of 66.5%. This compares with an operating profit margin of 64.7% in 1998-99. The average return per barrister for 2001-02 was $206,900 (table 20.12).
Consultant engineering services
At 30 June 2002 there were 10,984 consultant engineering businesses operating in Australia. The number of businesses has almost doubled since 1995-96 with an average annual percentage increase of 12% between the two periods (table 20.13).
These businesses employed 64,495 persons at 30 June 2002, of whom 26,680 (41%) were primarily involved in the provision of engineering services. A further 13,898 persons provided administrative/clerical services and 6,992 persons provided project management. In addition, there were a further 14,138 persons working on a contract basis for these businesses at 30 June 2002.
Consultant engineering businesses generated $9,342m in income during 2001-02, with income from engineering services accounting for 96% of this total. The most significant fields of income from engineering services were from industrial/process engineering ($1,864m), building/structural engineering ($887m), and electronic/power engineering ($728m).
Labour related costs dominated the expenses incurred by these businesses. Labour costs ($3,616m) and direct payments to contractors ($1,217m) respectively accounted for 44% and 15% from the total expenditure of $8,240m.
The operating profit before tax increased from $351m in 1995-96 to $1,152m in 2001-02. This increase was less dramatic for the operating profit margin, which increased from 11.0% in 1995-96 to 12.5% in 2001-02. The industry value added in 2001-02 was $1,287m.
Market research services
At 30 June 2002 there were 334 employing businesses predominantly involved in providing market research services in Australia. This represents an increase of 23% since end June 1999. There were 211 businesses which provided qualitative research services and 222 businesses which provided quantitative research services (i.e. some businesses provided both services) (table 20.14).
Market research businesses had employment of 12,311 persons at 30 June 2002, comprising 9,447 persons predominantly involved in data collection and processing and 1,811 persons performing client services, and research design and analysis functions. Females (8,629 persons) accounted for 70% of the total employment, with 6,802 females being employed on a casual basis. In total, there were 9,115 casuals employed at 30 June 2002 by market research businesses, and casual employees worked a total of 5.6 million hours during 2001-02.
During 2001-02, market research businesses generated $587m in income, with the key components being income from quantitative research ($310m) and qualitative research ($176m). These businesses incurred expenses of $529m, of which labour costs ($279m) contributed 53%.
The operating profit before tax for market research businesses was $58m (down from $72m in 1998-99), representing an operating profit margin of 10.1% in 2001-02. The operating profit margin in 1998-99 was 15.9%.
Table 20.15 shows the distribution of market research services by type of client. The manufacturing sector was the main type of client, with 135 businesses receiving income of $105m. Other significant client types were the retail and wholesale and the financial services sectors generating market research services income of $88m and $70m respectively.
A survey of employment services organisations was conducted in respect of 2001-02. These organisations were mainly involved in the provision of employment services such as job placement on a permanent, temporary and contract employment basis. Organisations whose main income was generated primarily from other related employment services such as the preparation of curricula vitae, counselling, training or other support services for job seekers, were excluded from the survey.
At 30 June 2002 there were 2,704 organisations involved in the provision of employment services. Of these, 2,445 (90%) were for profit, with the remainder being not-for-profit organisations. During 2001-02 there were 3.7m job placements made by these organisations, representing an increase of 37% since 1998-99 (table 20.16).
At 30 June 2002 there were 32,077 persons working directly for employment services organisations, with 55% of these persons working as recruitment/employment consultants. A further 290,115 persons were employed by employment services organisations as temporary staff to be on-hired to other businesses.
During 2001-02, total income was $10,229m. The main components of this income were client payments for temporary and contract job placements ($8,250m or 81%), payments for permanent placement and personnel recruitment services ($879m), and client income derived from government supported schemes ($574m).
Total expenditure of these organisations was $9,938m. Labour costs were the highest expense ($8,408m), representing 85% of total expenses. Other significant expenses incurred were rent, leasing and hiring expenses ($200m) and advertising expenses ($123m).
In 2001-02 employment services organisations recorded an operating profit/surplus before tax of $291m (down from $426m in 1998-99), representing an operating profit margin of 2.9%. The operating profit margin in 1998-99 was 5.6%.
Industry value added for employment services was $8,867m.
Sports and physical recreation services
A detailed survey of organisations mainly involved in sports and physical recreation activities was conducted in respect of 2000-01. Results showed that at 30 June 2001, there were 7,147 employing organisations involved in the provision of sports and physical recreation activities. These organisations employed 98,267 persons at 30 June 2001 and also had 178,837 volunteers working for them during the month of June 2001.
Horse and dog racing
At 30 June 2001 there were 1,034 businesses primarily involved in horse and dog racing activities, which includes horse and dog racing clubs and authorities, and training businesses. Horse and dog racing businesses employed 15,900 persons at 30 June 2001, of which casual employees (10,567 persons) comprised 66% of total employment (table 20.17).
During 2000-01, the total income of horse and dog racing businesses was $1,136m, of which net Totalisator Agency Board (TAB) distributions contributed $555m (or 49%). These businesses incurred expenses of $1,107m with prize money and trophy expenses ($404m) being the most significant expense.
The operating profit before tax for horse and dog racing businesses during 2000-01 was $31m, which resulted in an operating profit margin of 2.7%. The industry value added for these businesses was $261m.
Health and fitness centres and gymnasia
There were 667 health and fitness centres and gymnasia businesses operating in Australia at 30 June 2001 operating from 797 locations and with 501,264 members. These businesses employed 12,552 persons, of whom 64% were females. Casual employees (8,848 persons) were predominant in these businesses, accounting for 71% of employment (table 20.18).
During 2000-01, businesses operating health and fitness centres and gymnasia generated total income of $294m, with the main income item being takings from membership fees ($191m) which represented 65% of total income. Total expenses were $278m, of which labour costs accounted for 43%.
These businesses had an operating profit before tax of $16m, which represented operating profit margin of 5.6%.
Other sports and physical recreation venues
Other sports and physical recreation venues include businesses mainly engaged in the operation of any kind of indoor or outdoor sports or physical recreation facility, other than for health, fitness centres and gymnasia and horse or dog racing. At 30 June 2001 there were 864 such businesses operating in Australia. Their employment was 15,842 persons, with 7,962 volunteers working for them during June 2001. These organisations had 224,343 members at 30 June 2001 (table 20.19).
Other sports and physical recreation venue businesses generated $3,563m in income during 2000-01, with $645m received as income from admissions. This total income for 2000-01 included a significant contribution from the Sydney Organising Committee for the Olympic Games.
These businesses had total expenses of $3,584m which resulted in an operating loss before tax of $19m and an operating profit margin of -3.0%. The industry value added for other sports and physical recreation venues was $668m.
Sports and physical recreation administrative organisations
Sports and physical recreation administrative organisations include organisations mainly responsible for the policies, rules and regulations governing the conduct of an individual sporting or physical recreation discipline.
At 30 June 2001 there were 756 sports administrative organisations operating in Australia, all of which were in the not-for-profit sector. These organisations employed 11,814 persons, and were very reliant on volunteer staff with a total of 106,427 volunteers working during the month of June 2001. These volunteers mainly worked as sports officials (35,338 persons), in managerial/administrative roles (19,993 persons) and teaching, coaching and instructing (19,937 persons) (table 20.20).
During 2000-01, sports administrative organisations had total income of $1,147m including admissions income ($229m) and funding from government ($106m).
The total expenditure by sports administrative organisations was $1,100m during 2000-01. The major expense items were grants to other organisations ($237m) and labour costs ($225m).
During 2000-01, sports administrative organisations recorded an operating surplus before tax of $46m, which represented an operating profit margin of 7.4%.
Industry value added for sports administrative organisations was $229m.
Sports and physical recreation clubs, teams and sports professionals
These organisations are mainly engaged in operating individual sports or physical recreation clubs or teams which predominantly provide opportunities for participants or entertainment for spectators. Also included are sports professionals.
At 30 June 2001, there were 1,937 sporting clubs, teams and professionals operating in Australia, of which, 1,565 organisations (81%) operated on a not-for-profit basis. These organisations had employment of 23,312 persons and 61,950 volunteers during the month of June 2001. Employment in these organisations was dominated by casual employees who accounted for 52% of total employment (table 20.21).
During 2000-01, sporting clubs, teams and professionals had total income of $1,382m, with the main source of income being from subscriptions/membership fees at $313m. These organisations had 1.7 million members, with an average subscription or membership fee per member of $188.
The total expenditure of sporting clubs, teams and professionals during 2000-01 was $1,387m. Labour costs ($595m) was the major expense item, with other significant expenses being purchases of goods ($151m), depreciation and amortisation ($83m) and advertising, marketing, promotional and sponsorship expenses ($73m). In addition, these organisations incurred a $23m expense for contract payments to professional sportspersons.
The sporting clubs, teams and professionals recorded an operating loss before tax of $13m during 2000-01, which represented an operating profit margin of -1.3% for these organisations.
Industry value added for sports and physical recreation clubs, teams and sports professionals was $543m.
Sports and physical recreation support services
These businesses mainly provide support services such as sport and physical recreation services, education and coaching services, and personal fitness training services. At 30 June 2001 there were 1,259 businesses primarily involved in providing support services to sport, of which 94% operated on a for-profit basis. These businesses employed 8,028 persons, with 4,887 (61%) being females. A total of 5,024 persons were employed on a casual basis (table 20.22).
The total income generated by businesses providing support services to sport was $215m in 2000-01.
Total expenditure for these businesses was $187m of which labour costs accounted for $83m (45%). Other expenses included rent, leasing and hiring expenses ($16m), advertising, marketing, promotional and sponsorship expenses ($9m) and travelling, accommodation and entertainment expenses ($7m).
The operating profit before tax in 2000-01 for businesses providing support services to sport was $28m, representing an operating profit margin of 16.2%.
Industry value added for sports and recreation support services was $100m.
Government organisations involved in sport and physical recreation activities
Government organisations include units that were classified to the general government sector with primary portfolio responsibility for sport, or mainly involved in the provision of sports services. Local government authorities providing sports and physical recreation services were also included.
At the end of June 2001 there were 630 government organisations involved in sports and physical recreation activities in Australia, comprising 13 federal and state/territory government organisations and 617 local government organisations. These government organisations employed 10,820 persons who spent the majority of their time working on sports and physical recreation related activities. These employees comprised 2,813 (26%) managers and administrative staff, 2,205 (20%) repair and maintenance staff, 1,870 (17%) coaches and trainers, 585 (5%) sports development officers and 3,347 (31%) other staff (table 20.23).
The total sports and physical recreation support services related income of these government organisations in 2000-01 was $730m. The major source of this income was government funding of $463m, or 63% of total income. While the significance of government funding is reflected in the income of federal/state government organisations, the main source of income for local government organisations was from admissions ($152m), and income from rent, leasing and hiring of sporting grounds and recreational facilities ($49m).
The total expenditure of government organisations on the provision of sports and physical recreation support services was $965m during 2000-01. The major item of expenditure was wages and salaries ($255m), which accounted for 26% of the total expenditure. Other major expense items were sporting subsidies and grants provided to organisations and individuals of $216m (22% of total expenditure) and repair and maintenance of sporting grounds and physical recreation facilities of $169m (17% of total expenditure).