5673.0.55.001 - Regional Wage and Salary Earner Statistics, Australia - Electronic Publication, 2000-01
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 19/12/2003
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COMPARISON WITH ABS DATA
10 It should also be noted that two types of error are possible in an estimate based on a sample survey such as the LFS - sampling error and non-sampling error. The sampling error is a measure of the variability that occurs by chance because a sample, rather than the entire population, is surveyed. Since the estimates are based on information obtained from occupants of a sample of dwellings they, and the movements derived from them, are subject to sampling variability; that is, they may differ from the estimates that would have been produced if all dwellings had been included in the survey. Non-sampling errors refer to inaccuracies that may occur because of imperfections in reporting by respondents, errors made in collection such as in recording and coding data, and errors made in processing the data. Non-sampling errors may occur in any enumeration, whether it be a full census count or a sample survey (and also in compiling administrative data). It is not possible to quantify non-sampling error, but every effort is made to reduce it to a minimum by careful design of questionnaires, intensive training and supervision of survey interviewers and efficient operating procedures, etc. Survey of Employment and Earnings Data 11 The Survey of Employment and Earnings is designed to obtain information, from employer units, on the number of wage and salary earners employed each month and their quarterly earnings. All wage and salary earners who received pay in any pay period ending within the survey quarter are represented in the survey, including:
12 Casual employees who work on an irregular basis and who were not paid for the relevant pay period, employees on leave without pay, on strike or stood down without pay for the whole of the pay period are excluded. Also excluded are:
13 Other persons who are not regarded as employees for the purposes of SEE include directors who are not paid a salary, proprietors/partners of unincorporated businesses and self-employed persons such as subcontractors, owner/drivers, consultants and persons paid solely by commission without a retainer. 14 A sample of approximately 10,000 employer units are included in the survey which is mostly conducted by mail each quarter. Data for a number of Commonwealth, Australian Capital Territory and Northern Territory government departments, and a small number of large private businesses, are collected electronically. All wage and salary earners who received pay for any part of the relevant pay period are represented in the survey. Estimates from SEE are also subject to sampling and non-sampling errors (see paragraph A1.10 above). 15 These are just some of the main definitional and methodological differences for the data sources that should be borne in mind when comparisons are made. For further details regarding the Labour Force Survey, see Labour Statistics, Concepts, Sources and Methods, 2001, cat. no. 6102.0 and for details regarding wage and salary earner estimates from the Survey of Employment and Earning, see Wage and Salary Earners, Australia, June 2001, cat no. 6248.0. (Please note that SEE has undergone considerable change since December 2001. From the March quarter 2002, estimates for the public sector are collected only and will not be comparable to the data presented here for previous periods). 16 As shown in table A1, wage and salary earner estimates are generally consistent in broad magnitude across the three data sources for each state and territory. For example, the number of employees in New South Wales has risen from around 2.4 million persons in 1995-96 to around 2.5 million in 2000-01. Movements between years differ in some cases, mainly due to the different reference periods used. However, data for other quarters or months for the LFS and SEE, indicate that upward or downward movements may be the same. 17 Estimates at the SLA level are not available from both the LFS or SEE. The Census of Population and Housing is the best source to compare wage and salary earner numbers at this small area level. See paragraph A1.27. A1. COMPARISON WITH ABS DATA, Number of Wage and Salary Earners, States and Territories, 1995-96 to 2000-01
(b) SEE; Survey of Employment and Earnings, Trend Series, At June. Source: Wage and Salary Earners, Australia, cat.no. 6248.0, Time Series Spreadsheets. TOTAL WAGE AND SALARY INCOME 18 Table A2 compares total wage and salary income for wage and salary earners from ATO data for each state and territory, with estimates of gross earnings for wage and salary earners as collected in SEE. Quarterly employee earnings from the survey have been aggregated to produce financial year estimates. 19 Gross earnings in the Survey of Employment and Earnings are defined as "payments to employees before tax and other items (such as superannuation) are deducted. They comprise amounts paid from interstate or overseas; ordinary time and overtime earnings; overaward payments; penalty payments, shift and other remunerative allowances; commissions and retainers; bonuses and similar payments; payments under incentive or piecework; payments under profit-sharing schemes; leave loadings; annual and long service leave payments; sick leave payments; advance and retrospective payments; salaries and fees paid to company directors, members of boards, committees, commissions, councils, etc.; amounts paid to employees on workers’ compensation who continue to be paid through the payroll; and severance, termination and redundancy payments". 20 As highlighted in paragraphs 13 to 16 of the Explanatory Notes, lump sum and/or other non-regular payments such as severance, termination and redundancy payments, have been excluded from the ATO wage and salary earner definition. 21 Total wages and salaries paid to employees are generally consistent in broad magnitude across the two comparative data sources for each state and territory. Movements between years are also reasonably consistent in most cases. For example, total wages and salaries paid to employees in New South Wales have risen from around $73 billion in 1995-96 to over $90 billion in 2000-01. 22 Comparison at the SLA level is not possible as estimates of wages and salaries paid at the SLA level are not available from any other data source. This highlights the value of making this ATO information available to users of regional statistics. A2. COMPARISON WITH ABS DATA, Total Wage and Salary Income, States and Territories, 1995-96 to 2000-01
CHARACTERISTICS OF WAGE AND SALARY EARNERS 23 The following sections compare 2000-01 ATO data for the various characteristics of wage and salary earners (sex, age, income and occupation) with 2001 Population Census data. Census data have been used as they particularly allow comparisons to be made at the SLA level. Once again, Census concepts, definitions and collection methodologies differ to those defined for wage and salary earners from the ATO database as well to those outlined for the LFS and SEE. Census of Population and Housing 24 The Census of Population and Housing is conducted every five years and is a complete enumeration of the total population in Australia, gathering a wealth of information about dwellings, families and persons present in Australia on Census night. It is the largest statistical collection undertaken by the ABS with one of its main objectives being the provision of data for small geographic areas. Excluded from the Census are foreign diplomats and their families and although visitors to Australia are included in the Census count they have been excluded from the data presented here. Australian residents out of the country on Census night are out of scope of the collection. The Census is self-enumerated, which means that each household is responsible, in most cases, to fill in the details required. 25 A number of questions are used in the Census to establish a person's employment status. A person is employed if, in the week prior to Census night, they had a full-time or part-time job. A job means any type of work including casual, temporary or part-time work if it was for one hour or more. An employee (or wage and salary earner) is further defined as "a person who works for a public or private employer and receives remuneration in wages or salary; or is paid a retainer fee by his/her employer and works on a commission basis; or works for an employer for tips, piece-rates or payment in kind; or is a person who operated his/her own incorporated enterprise with or without hiring employees". 26 Census data are a snapshot of the population at a "point in time" as they refer to a person's employment status in the week before Census night (Tuesday, 7 August 2001), in comparison with the ATO data which provide information about the reporting population based over a whole financial year. 27 For the actual number of wage and salary earners results of the 2001 Census of Population and Housing show that employee counts differ considerably from those derived from the ATO (which are generally consistent with estimates derived from the LFS and SEE). For Australia the total number of wage and salary earners in 2000-01, from ATO data, was 7.47 million persons compared with 2001 Census data which counted 6.82 million persons, a difference of 9.5%. At the SLA level the total number of wage and salary earners from ATO data lie within ±25.0 percentage points of the Census figure for around 84% of SLAs. 28 Percentage distributions have been used for the following comparative purposes. SEX DISTRIBUTION 29 At the state level the sex distribution is very similar between 2000-01 ATO and 2001 Census data with ATO data showing a slightly higher proportion of male wage and salary earners in all states and territories except Northern Territory. The proportion of males in all states and territories except the Australian Capital Territory (50.5%) is around 53% to 54%, whereas from Census data the proportions are around 52% for most states and almost 50% for the ACT and 54% for NT. Overall, the differences in the distribution between the two data sources, for most states, is just over one percentage point. For total Australia ATO data show the proportion of males at 53.4% compared with 52.1% from Census data. 30 At the smaller SLA level the differences are slightly greater with ATO data being within ±5.0 percentage points of the Census figure for around 93% of SLAs. (Note: There were 1,343 SLAs in the 2001 ASGC structure). ATO data are within ±2.0 percentage points of Census data for around 62% of SLAs. Chart A4 provides an example of the distribution of males, comparing ATO and Census data, for each state and territory. Similar SLA comparison are available on request. A3. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, Sex Distribution,
States and Territories, 2000-01 ATO Data and 2001 Census Data
A4. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, Distribution of Males, States and Territories, 2000-01 ATO Data and 2001 Census Data AGE DISTRIBUTION 31 At the state and territory level the age distribution for all wage and salary earners is very similar between 2000-01 ATO and 2001 Census data. For all states/territories, almost all differences between the two data sources are less than one percentage point with most being around half a percentage point or less. For total Australia both data sources show that in 2000-01 around 19% of wage and salary earners were aged 15-24 years and around 9% were 55 years and over. 32 In the main, similar distributions are generally evident between the two data sources at the SLA level. For the 15-24 and 25-34 year age groups differences range between ±5.0 percentage points for about 90% of SLAs. For the three other age ranges the differences range between ±5.0 percentage points for about 95% of SLAs. A5. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, Age Distribution,
States and Territories, 2000-01 ATO Data and 2001 Census Data
33 Below are a series of graphs that compare each age group across the states and territories and all age groups for each state and territory separately. These graphs highlight that both ATO and Census data record similar age distributions for wage and salary earners across states and territories. A6. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, Age Group BY State and Territory, 2000-01 ATO Data and 2001 Census Data
A7. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, State and Territory BY Age Distribution, 2000-01 ATO Data and 2001 Census Data
TOTAL INCOME DISTRIBUTION 34 For the purposes of these comparisons total income has been used as the Census does not collect wage and salary income separately. Gross earnings from all sources are collected in the Census which makes the data more comparable to similar total income data for wage and salary earners from the ATO database. When comparing these data sources it should be noted that there is a tendency for incomes to be understated in the Census whereas for ATO data income are as reported by employers on the employees' PAYG Payment Summary(s). 35 For most states and territories the income distribution for wage and salary earners are generally consistent. ATO data tend to show lower proportions in the $20,800 to $31,200 income group which could possibly be due to the tendency for incomes to be understated in the Census. ATO data also show slightly higher proportions in the $1 to $10,400 income range. This may the result of more part-time and casual workers being included from the ATO database due to the coverage of income over the whole financial year. 36 In general, similar distributions are also evident at the SLA level. For the $20,800-$31,200 income range, ATO data for approximately 70% of SLAs are within ±5.0 percentage points of Census data. For all other income ranges around 90% to 95% of SLAs are within ±5.0 percentage points. A8. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, Total Income,
States and Territories, 2000-01 ATO Data and 2001 Census Data
37 The charts below highlight the comparisons for each state and territory. The nil/negative income range has been excluded from these graphs. A9. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, Total Income Group BY State and Territory, 2000-01 ATO Data and 2001 Census Data
A10. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, State and Territory BY Total Income Distribution, 2000-01 ATO Data and 2001 Census Data
OCCUPATION DISTRIBUTION 38 Occupation data compiled from the ATO database includes a high proportion of wage and salary earners for whom the occupation was not stated or not coded. The "not stated" category includes non-response to the occupation question as well as occupations provided which were unable to be coded. In addition, due to internal auditing procedures within the ATO, some occupations are not coded for some individuals. Most of these are lower income earners. The magnitude of the contribution of each of these elements to the ‘not stated’ category is unknown. 39 Since the compilation of this series of data, the proportion of persons in the "not stated" category has decreased each year from around 27% in 1995-96 to 20% in 2000-01. It is expected that this trend will continue as improved procedures are implemented. Not stated categories from both ATO and Census data have been excluded when calculating the distributions shown below. 40 Coding procedures applied by the ATO are different to ABS occupation coding procedures. The Census uses an occupation title as well as a description of tasks and duties to code occupation, while for ATO occupation coding, a title only is generally available. For electronically lodged income tax returns individuals and/or tax agents select an occupation from a specified list. A random sample of income tax returns were analysed to test the consistency of ATO occupation coding with ABS coding. Results from this analysis showed that, at the Major Group or one digit level, approximately 90% of returns were consistently coded. This consistency fell to about 80% at the Unit Group or four digit level. This analysis was undertaken in respect of 1995-96 ATO data and 1996 Census data. A similar analysis with 2001 data has not been undertaken. 41 For the purposes of these comparisons occupation data, based on ASCO First Edition, compiled from the ATO database have been concorded to align with ASCO Second Edition which was used in the 2001 Census. The concordances were based on factors derived from the 1996 Census when occupation was coded to both ASCO First and Second Editions. Further details about the link between these two editions of ASCO can be referenced in Information Paper, Link Between First and Second Editions of Australian Standard Classification of Occupations (ASCO), 1996 Census of Population and Housing, cat. no. 1232.0. 42 Despite these differences and limitations, occupation data from both sources exhibit similar distributions at the state and territory level. Main differences are apparent for Managers and administrators, Intermediate clerical, sales and service workers and Elementary clerical, sales and service workers. These occupations have traditionally been difficult to code accurately, especially when an occupation title is provided only. In the compilation of the second edition of ASCO, clerical, sales and service workers in particular were the subject of major change. 43 ATO data, in most cases, report more Managers and administrators and fewer Clerical, sales and service workers. For the Australian Capital Territory this pattern is reversed. For other occupations the distributions are reasonably consistent across all states and territories. 44 In the main, similar distributions are also generally evident between the two data sources at the SLA level. For all the occupation groups differences between the two data sources range between ±5.0 percentage points for around 90% of SLAs. A11. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, Occupation Distribution,
States and Territories, 2000-01 ATO Data and 2001 Census Data
45 The following graphs compare each occupation group across the states and territories and all occupations for each state and territory separately. A12. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, Occupation Group BY State and Territory, 2000-01 ATO Data and 2001 Census Data
A13. WAGE AND SALARY EARNERS - COMPARISON WITH ABS DATA, State and Territory BY Occupation Distribution, 2000-01 ATO Data and 2001 Census Data
SUMMARY 46 Despite the definitional and methodological differences that exist between ATO wage and salary earner data and similar data from the ABS Labour Force Survey, the ABS Survey of Employment and Earnings and the ABS Census of Population and Housing, the statistics compiled from the ATO database have been found to be generally consistent in broad magnitude when compared with these other data sources. In addition, distributions of characteristics such as sex, age, income and occupation are also generally consistent for most areas. 47 The above comparisons highlight that the ATO database is a valuable data source in its own right that can provide useful statistical indicators at the small area or regional level. However, as is the case with most administrative datasets, readers should use the data with care and be mindful of the definitions and limitations of the data items, and the purposes for which they were collected. Document Selection These documents will be presented in a new window.
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