8155.0 - Australian Industry, 2017-18 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 31/05/2019   
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Technical note on EAS state and territory estimates

Introduction

1 The 'Australian industry by division' data cube contains annual state and territory estimates for Australian industry for the 2015-16 to 2017-18 reference periods. For earlier time periods see previous issues of this release. The estimates use a combination of data directly collected in the Economic Activity Survey (EAS) and Business Activity Statement (BAS) data sourced from the Australian Taxation Office (ATO).

Estimation methodology

2 EAS state and territory estimates are produced for employment, wages and salaries and sales and service Income. For the purpose of compiling the estimates in this publication, data for businesses as recorded on the ABS Business Register (ABSBR) contribute via one of three categories (or 'streams') in accordance with significance and collection-related characteristics. The data are produced using a combination of estimation methods. The estimation method depends on the stream:

  • Stream 1: Completely enumerated and medium size multistate businesses
  • Stream 2: Sampled sector units
  • Stream 3: Micro Non-Employing Units (MNEUs).

Stream 1: Completely enumerated and medium size multistate businesses

3 This stream consists of units recorded on the ABSBR as being economically significant units, plus medium size businesses which according to information recorded on the ABSBR operate in more than one state or territory and have 20 or more employees.

4 Stream 1 units contribute to the state and territory estimates via state data reported in the EAS.

Stream 2: Sampled sector units

5 This stream comprises of units selected in EAS which are not in Stream 1 and have turnover, in aggregate, above the bottom 2.5 percentile of BAS turnover for that industry, or are identified as employing businesses (based on ATO information).

6 Stream 2 units contribute to the state and territory estimates via proration of their data across the states and territories.

7 State/territory stratification is not used for selecting the EAS sample. As a result, state and territory estimates can be inaccurate due to under or over representation of some states in the selected sample. To minimise this risk, ABS uses a synthetic estimation method. The data reported by Stream 2 units is prorated across the states and territories using state/territory proration factors. State/territory proration factors are produced based on ABSBR survey frame information. For sales and service income, BAS turnover is used; for wages and salaries and employment, BAS wages is used. The proration factors are calculated at the stratum level.

Stream 3: Micro Non-Employing Units (MNEUs)

8 This stream comprises non-employing businesses whose BAS turnover, in aggregate, is below the bottom 2.5 percentile of BAS turnover for that ANZSIC subdivision. Stream 3 units contribute to state and territory estimates for the main state of operation.

9 Stream 3 units are not sent a survey form, but enumerated based on data sourced from the ATO. Data for Stream 3 are produced using BAS turnover to model sales and service income. The modelling parameters are based on the relationship between BAS data and reported data for small businesses in the direct collect sample over 3 years and have been defined at the industry level. Wages and salaries have been modelled as 0 since these businesses are non-employers. Employment is based on the business type of (legal) structure.

10 For Stream 3 units, it is assumed that the business only operates in one state or territory. This is a reasonable assumption, given these units have no staff and very low turnover. As such, all of their reported data for the above variables contributes to the estimates of their main state of operation.