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SUMMARY OF FINDINGS
During 2011-12, businesses in the Construction industry generated total income of $305.5b. Of the total income, Construction services accounted for 44.5% (or $135.9b), Building construction for 33.2% (or $101.6b) and Heavy and civil engineering construction for 22.3% (or $68.0b).
The major source of income (76.3% or $233.2b) was from trade services, building and construction, followed by sales of goods and other services (22.1% or $67.5b).
Primary and subcontracting income
Of the income from trade services, building and construction, primary contracting income accounted for 59.9% (or $139.6b), while subcontracting income accounted for 40.1% (or $93.6b).
The following graph shows that income from trade services, building and construction was primarily for new work and improvements (excludes improvements to houses and other buildings).
During 2011-12, Construction businesses incurred $275.4b in total expenses of which purchases accounted for 29.8% (or $82.1b), followed by payments to other businesses for trade services, building and construction work with 28.2% (or $77.7b).
Labour costs accounted for 21.9% (or $60.4b) of total expenses. This represents an average labour cost per person employed for all in scope Construction businesses of $63.6k. Heavy and civil engineering construction recorded higher labour costs per person employed with $113.5k followed by Building construction ($66.6k) and Construction services ($50.7k).
Small Construction businesses (employment range 0-19) accounted for 97.7% (or 204,949) of all Construction businesses and the largest share of total income with 49.0% (or $149.8b). The total OPBT of these businesses was $22.4b. In contrast, large construction businesses (employment range of 200 or more) accounted for 0.1% (or 186) of all Construction businesses and generated just over a quarter of total Construction income (27.3% or $83.5b). The total OPBT of these businesses was $2.6b.
In 2011-12, Construction businesses generated $30.3b in OPBT, almost three-quarters of this (71.6% or $21.7b) was attributable to Construction services. Heavy and civil engineering construction showed the largest average OPBT with $263.1k per business followed by Building construction with $225.8k and Construction services with $125.5k.
Construction businesses had an OPM of 10.1%. This margin was higher for Construction services (16.1%) than for Building construction (7.1%) and Heavy and civil engineering construction (2.3%).
STATE AND TERRITORIES
Queensland and New South Wales recorded the greatest share of income from the sale of goods and services, each with 24.1% (or $72.6b). Comparatively, these states' population shares were 20.1% and 32.1% respectively. Although Western Australia's share of the population was 10.7%, they accounted for 18.3% (or $55.2b) of income from sales of goods and services.
In terms of average salaries in the Construction industry, Western Australia's average salary was $76.6k. This was followed by Queensland ($59.2k), Victoria ($51.9k) and Northern Territory ($51.6k).
The share of wages and salaries to total operating expenses in the Construction industry varied across states, with Western Australia recording the highest level (22.6%). The lowest share of wages and salaries to total operating expenses were in South Australia (15.3%) and the Australian Capital Territory (13.3%).
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