The official measure of the population of Australia is based on the concept of usual residence. It refers to all people, regardless of nationality, citizenship, or legal status, who have resided in Australia for at least 12 months over a 16 month period, with the exception of foreign diplomatic personnel and their families.
Estimates of the Australian resident population are generated quarterly by adding the natural increase and net overseas migration (NOM) which occurred during the relevant quarter to the population at the beginning of that quarter. This is known as the component method, and can be represented by the following equation for national ERP:
\(P_{t+1}=P_t+B-D+NOM\),
where,
\(P_t\) = the estimated resident population at time, t
\(P_{t+1}\) = the estimated resident population at time, t+1
\(B\) = the number of births occurring between t and t+1
\(D\) = the number of deaths occurring between t and t+1
\(NOM\) = net overseas migration occurring between t and t+1
For state and territory population estimates, net interstate migration (\(NIM\)) occurring during the quarter is incorporated, represented by the following equation:
\(P_{t+1}=P_t+B-D+NOM+NIM\)