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Australian Industry

Presents estimates derived using a combination of data from the Economic Activity Survey and business tax data sourced from the Australian Tax Office

Reference period
2018-19 financial year

Key statistics

  • Mining industry EBITDA grew 32.2% ($33.7b).
  • Manufacturing industry EBITDA grew 9.1% ($3.3b).
  • Construction industry EBITDA grew 5.4% ($2.5b).
  • Health care and social assistance industry EBITDA grew 7.2% ($1.9b).

Key findings

  • The Mining industry saw continued growth across all key data items in 2018-19. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the year increased by 32.2% ($33.7b).
  • The Manufacturing industry experienced a second consecutive year of growth with EBITDA rising 9.1% ($3.3b).
  • The Construction industry, while still showing positive EBITDA growth of 5.4% ($2.5b), slowed from the previous year's 8.0% ($3.4b).
  • Health care and social assistance industry EBITDA grew 7.2% ($1.9b).
  • Information media and telecommunications reported a decline of 10.8% in EBITDA (down $2.1b).
  • The largest contributors to employment growth were service industries, with the largest growth reported by the Health care and social assistance industry (109,000 people, or 9.0%), the Professional, scientific and technical services industry (56,000 people or 5.1%) and the Administrative and support services industry (29,000 people or 3.1%).
     
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Key figures

ANZSIC DivisionEmployment at end JuneEBITDA
 2017-182018-192017-18 to 2018-192017-182018-192017-18 to 2018-19
 '000'000%$m$m%
A Agriculture459451-1.720 57819 580-4.8
B Mining1691795.9104 879138 62532.2
C Manufacturing8408541.736 95140 2979.1
D Electricity, gas, water and waste services1081134.635 38136 0511.9
E Construction1 1131 1170.445 97548 4795.4
F Wholesale trade5405573.120 90522 0045.3
G Retail trade1 3101 3311.623 60223 277-1.4
H Accommodation and food services1 0291 0310.29 948^10 0801.3
I Transport, postal and warehousing6006203.332 58633 9574.2
J Information media and telecommunications168167-0.618 95316 903-10.8
L Rental, hiring and real estate services420417-0.757 55157 7080.3
M Professional, scientific and technical services1 0991 1555.129 91332 1517.5
N Administrative and support services9259543.1^7 751^7 8601.4
O Public administration and safety (private)78825.1^1 048^1 0782.9
P Education and training (private)4144303.94 3104 6848.7
Q Health care and social assistance (private)1 2101 3199.026 00727 8777.2
R Arts and recreation services2002168.0^4 9945 3336.8
S Other services5005142.8**1 888*2 75045.7
^ estimate has a relative standard error of 10% to less than 25% and should be used with caution
* estimate has a relative standard error of 25% to 50% and should be used with caution
** estimate has a relative standard error greater than 50% and is considered too unreliable for general use
 


For more industry information please see the Industry Analysis section in this release.

Australian Industry estimates report on the performance of selected industries compiled from the annual Economic Activity Survey (EAS), which excludes most of the General government sector (except for Subdivision 28 Water supply, sewerage and drainage services) and entities classified to Division K Financial and insurance services. For more information about the scope and coverage of EAS please refer to the Methodology page.

Industry analysis

  • Estimates in this issue cover the performance of selected industries compiled from the annual Economic Activity Survey (EAS) and from Business Activity Statement (BAS) data reported to the Australian Taxation Office (ATO) expressed in current prices.
  • Employment is reported at the end of June 2019.
  • Financial items are reported for the financial year ending June. However, estimates are not adjusted for situations where businesses report to the ABS on an off-June reporting year and can be impacted by price fluctuations. This particularly impacts estimates for the Mining industry (see below). For a limited range of estimates adjusted to a June financial year basis, see the 'Off-June adjusted estimates by subdivision' data cube. For more information about the impact of off-June year reporting on estimates, see the Technical note on Off-June Year adjusted estimates in this release.
  • For more information on the scope and coverage of the collection for this release, please refer to the Methodology page.
     
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*See Changes in this release note for information about improvements to estimates for the Health care and social assistance industry.
 

Mining

The Mining industry experienced large growth in 2018-19, compared to 2017-18, across all key data items:

  • EBITDA for the Mining industry grew 32.2% ($33.7b).
  • The Export Price Index for Mining grew 21.4% between the 2017-18 and 2018-19 financial years, and 9.0% between calendar years 2017 and 2018.
  • Large export growth benefitted both the Oil and gas extraction and Metal ore mining industry subdivisions, with EBITDA increasing for these subdivisions by 73.3% ($19.3b) and 21.0% ($10.6b) respectively.
  • Coal mining EBITDA grew 12.8% ($3.4b) compared to 41.9% ($7.8b) in 2017-18.
  • Employment for the Mining industry increased by 10,000 people (5.9%) driven by growth in the Metal ore mining subdivision which increased employment by 6,000 people (9.0%).
     

For more detailed financial performance information on the Mining industry please refer to the 'Mining industry' data cube.

Estimates for the Mining industry largely reflect calendar year reporting for 2018.

Manufacturing

The Manufacturing industry experienced growth in most key data items in 2018-19, compared to 2017-18:

  • The Manufacturing industry saw growth with EBITDA increasing by 9.1% ($3.3b).
  • EBITDA growth was driven mainly by Primary metal and metal product manufacturing (with growth of 25.3% or $1.4b) and Machinery and equipment manufacturing (30.4% or $1.1b).
  • The Food product manufacturing subdivision was also a contributor to growth, benefitting from increased exports. EBITDA for this subdivision increased by 13.9% ($882m).
  • Wages and salaries increased in the Manufacturing industry by 4.8% ($2.7b) along with an increase in employment of 14,000 people (1.7%).
     

Construction

In 2018-19 the Construction industry saw growth across most key data items compared to 2017-18:

  • The Construction industry EBITDA grew 5.4% ($2.5b), driven by the Construction services subdivision which saw EBITDA increase by 6.3% ($1.6b).
  • The Building construction subdivision saw growth with EBITDA increasing by 3.3% ($0.5b), however this growth has slowed since 2017-18 when EBITDA increased by 10.0% ($1.5b).
  • This growth is reflected in the 2.9% increase in the value of building work done in Australia, a subdued result compared to the 7.8% growth observed in the 2017-18 financial year.
  • While interest rates remained historically low, residential property prices saw a fall of 5.5% as reflected in the Residential Property Price Index.
     

Health care and social assistance

The Health care and social assistance industry experienced growth across most key data items in 2018-19, compared to 2017-18:

  • EBITDA grew 7.2% ($1.9b), driven by the Medical and other health care services subdivision which increased by 9.8% ($2.1b).
  • The Health care and social assistance industry recorded the largest employment growth of all industries increasing by 109,000 people (9.0%).
  • Driving employment growth were the Residential care services and Social assistance services subdivisions, increasing by 44,000 people (15.8%) and 36,000 people (9.2%) respectively.
     

Refer to the Health care and social assistance section in this release for more information relating to this industry.

    Information media and telecommunications (IMT)

    Unlike most other industries, IMT reported a fall of 10.8% in EBITDA (down $2.1b) in 2018-19, compared to 2017-18:

    • The $2.1b decline in EBITDA was driven by the Telecommunications services and Broadcasting (except internet) subdivisions which reported falls of $1.8b and $1.1b respectively.
    • This was partially offset by the Internet service providers, web search portals and data processing services subdivision which saw a rise of $809m in EBITDA.
    • Although employment declined slightly 1,000 people (down 0.6%), wages and salaries increased 6.2% ($951m), driven by Telecommunications services which reported a rise of 13.7% ($932m).

    Business performance by size

    ​​​​​​​Micro businesses

    Micro businesses (those with 0-4 employees) are more likely than other businesses to be sole proprietors and partnerships, and also include a large number of non-employing businesses. These businesses have low or nil wages, and the owner operators pay themselves out of business profits rather than receiving a wage or salary. This can have a distorting effect on wages and salaries, operating profit before tax (OPBT) and earnings before interest tax depreciation and amortisation (EBITDA) when compared to other key indicators and other business sizes.

    • In 2018-19, micro businesses contributed a share of 10-20% of most key data items, with the exception of OPBT (35.7%), employment (24.6%) and EBITDA (32.3%).
       

    In 2018-19, compared to 2017-18:

    • Micro businesses reported increases in sales and service income, expenses and EBITDA, but falls in OPBT, wages and salaries and employment.
    • Wages and salaries declined 7.2% (down $5.2b) with the biggest fall reported by the Construction industry (down $2.0b).
    • Employment fell by 146,000 people (down 4.9%) with the largest decline shown in the Accommodation and food services industry (down 54,000 people).
    • OPBT declined 4.9% (down $8.2b), driven by Rental hiring and real estate services, which fell $16.3b.
       

    Small businesses

    • Small businesses (those with 5-19 employees) contributed a 10-20% share to the overall total of most key data items in 2018-19 aside from EBITDA which contributed 8.9%.
       

    In 2018-19, compared to 2017-18:

    • Large growth was seen in OPBT while employment and wages and salaries declined.
    • Employment declined by 46,000 people (down 2.4%) and wages and salaries declined 1.9% (down $1.7b), primarily driven by Retail trade, which recorded falls in employment and wages of 34.7% and 24.4% respectively.
    • However, small businesses had the largest growth rate in OPBT (35.7%, $12.5b) compared to other business sizes, driven by Mining ($4.9b) and Professional, scientific and technical services ($3.6b).
       

    Medium businesses

    In 2018-19:

    • Medium businesses (those with 20-199 employees) contributed 20-30% to the majority of key data items.
    • An exception to this trend was OPBT, where medium businesses contributed 12.5% ($56.0b) to the overall total, and EBITDA where medium businesses contributed 13.8% ($72.9b) to the overall total.
       

    In 2018-19, compared to 2017-18:

    • Medium businesses had the smallest positive growth in OPBT (14.9%, $7.3b) compared to other business sizes, with only micro businesses doing worse as they declined 4.9%.
    • Employment saw an increase of 223,000 people from 2017-18 with the largest increase reported in Health care and social assistance (69,000 people).
    • Wages and salaries of medium businesses grew $16.4b (10.4%), with Professional, scientific and technical services ($4.5b, 19.8%) reporting the largest increase.
       

    Large businesses

    • In 2018-19, large businesses (those with 200 or more employees) contributed over 40% to the overall total for most key data items, with the exception of employment where their share was only 33.6%.
       

    In 2018-19, compared to 2017-18:

    • Employment grew in line with wages and salaries, each respectively increasing 8.2% and 8.7% from 2017-18.
    • The largest industry contributors to employment growth were Administrative and support services (61,000 people, 15.9%) and Professional, scientific and technical services (51,000 people, 21.7%).
    • Wages and salaries growth was also driven by Professional, scientific and technical services ($4.6b, 17.2%) and Administrative and support services ($4.1b, 17.6%).
    • Large businesses contributed the largest proportion to OPBT compared to other business sizes (41.3%).
    • Growth in OPBT ($13.8b, 8.0%) was driven by the Mining industry ($24.5b, 43.7%).
    • Many other industries reported a decline in OPBT, including Rental, hiring and real estate services, Information media and telecommunications and Health care and social assistance (reporting falls of 40.9%, 75.5% and 47.2% respectively).
       

    Further information

    For more information and estimates classified by business size refer to Table 5 'Business size by industry division' in the 'Australian industry by division' data cube.

    State and territory performance

    In 2018-19, east coast states New South Wales, Victoria and Queensland accounted for the largest share of each of the three key state economic indicators: sales and service income, employment and wages and salaries.

    The key economic indicators for most states and territories were comparable to the population distribution in the Estimated Resident Population. New South Wales had the largest population share at 31.9%, corresponding to the largest share of total sales and services income at 32.5%. Northern Territory had the smallest population share at 1.0% which corresponded to the smallest share in total sales and service income at 1.0%.

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    State and territory growth

    In 2018-19, when compared to 2017-18:

    • All states and territories experienced growth in all three indicators, except Northern Territory, which declined across all three items.
    • The east coast states (New South Wales, Victoria and Queensland) drove growth for employment, wages and salaries and sales and service income.
    • Western Australia's large contribution to sales and service income growth was driven by the Mining industry.
    • Health care and social assistance saw the most employment growth in most states and territories.
       

    Sales and service income across states and territories

    In 2018-19:

    • New South Wales had the largest share of sales and service income at 32.5% ($1,143.6b), followed by Victoria at 25.1% ($881.9b).
    • Wholesale trade was the largest industry for New South Wales and Victoria.
    • Tasmania, the Australian Capital Territory and the Northern Territory contributed the least to overall sales and service income, each respectively accounting for 1.4% ($50.0b), 1.2% ($43.3b) and 1.0% ($36.4b).
    • The Retail trade and Wholesale trade were the top contributing industries to sales and service income for South Australia and Queensland.
    • The Mining industry contributed $155.7b (31.3%) to sales and service income for Western Australia.
       

    Employment across states and territories

    In June 2019:

    • New South Wales had the largest share of national employment at 3.9 million people (33.9%), followed by Victoria at 3.0 million people (26.2%) and Queensland at 2.2 million people (19.1%).
    • The Retail trade and Health care and social assistance industries were the two largest employers for Victoria, Queensland, South Australia, Western Australia and Tasmania.
    • For both New South Wales and the Australian Capital Territory, Professional, scientific and technical services was the highest employing industry.
    • In the Northern Territory, the Construction industry contributed the most to employment.
       

    Wages and salaries across states and territories

    In 2018-19:

    • New South Wales accounted for the largest share of wages and salaries at 33.9% ($207.1b), followed by Victoria at 25.7% ($156.7b) and Queensland at 18.6% ($113.4b).
    • The industry with the largest share of wages and salaries for New South Wales, Victoria and the Australian Capital Territory was Professional, scientific and technical services.
    • For Queensland and the Northern Territory, Construction was the industry with the largest share of wages and salaries.
    • For South Australia, Western Australia and Tasmania, Manufacturing, Mining and Health care and social assistance respectively contributed the most to the state's total wages and salaries.
    • Tasmania had the lowest average wages and salaries per person employed at approximately $45,100, while Northern Territory had the highest wages and salaries per person employed at approximately $61,400.
       

    Note that average wages and salaries have been calculated using wages and salaries for the full financial year 2018-19 which exclude the drawings of working proprietors and partners of unincorporated businesses, whereas employment is a point in time estimate at June 2019 and includes working proprietors and partners, so the ratio should be used with caution.

    Further information

    For more information and estimates classified by state and territory refer to Table 6 'States and territories by industry division' in the 'Australian industry by division' data cube.

    For information about the method used to derive state and territory estimates, please refer to the Technical note on state and territory estimates in this release.

    Health care and social assistance

    Additional information for 2018-19

    As part of the Economic Activity Survey (EAS), the ABS collects detailed information from a rotating program of industries. For 2018-19 only, the EAS collected additional information from Australian businesses/organisations classified to Division Q Health care and social assistance of the Australian and New Zealand Standard Industrial Classification, 2006 edition (ANZSIC) (cat. no. 1292.0). This included the following subdivisions:

    • Subdivision 84: Hospitals
    • Subdivision 85: Medical and other health care services
    • Subdivision 86: Residential care services
    • Subdivision 87: Social assistance services
       

    A total sample of 1,889 businesses/organisations classified to the private sector component of ANZSIC Division Q Health care and social assistance were selected to receive an extended EAS questionnaire. There was an 89.8% response rate from all businesses that were surveyed and found to be operating during the reference period. Data were imputed for the remaining 10.2% of businesses. This imputation contributed 7% to the estimate of total income for Health care and social assistance.

    The Health care and social assistance division covers a diverse range of activities. The ABS used an activity view when designing the questionnaires to maximise the information collected whilst minimising the provider load placed on survey respondents. The tables contained in the 'Health care and social assistance industry' data cube are also presented on this basis.

    The Health care and social assistance division component of the EAS was fully integrated, which means that other data cubes in this release which contain estimates relating to Health care and social assistance are consistent with the 'Health care and social assistance industry' data cube.

    Key points

    The private sector Health care and social assistance industry division experienced growth across most key indicators in 2018-19, compared to 2017-18:

    • Employment increased by 109,000 people (9.0%) to 1,319,028, the highest growth of any industry division in 2018-19.
    • Total income increased 8.9% ($12.5b) to $152.2b.
    • Total expenses increased 10.2% ($11.6b) to $125.3b.
    • Operating profit before tax (OPBT) increased 3.5% ($901m) to $26.9b.
    • Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 7.2% ($1.9b) to $27.9b.
       

    Health care and social assistance continued to be the second largest employing division with 1,319,028 people, after the Retail trade division (1,331,000).

    The main sources of total income ($152.2b) in 2018-19 were:

    • sales and service income $129.6b (85.2%)
    • funding from government for operational costs $18.2b (12.0%).
       

    The largest components of total expenses ($125.3b) in 2018-19 were:

    • wages and salaries $59.8b (47.7%)
    • purchases of goods and materials $12.9b (10.3%).
       

    More detailed analysis of income, expenses and employment is included below for each subdivision.

    The following table and chart provide key figures for the financial and economic performance of the businesses classified to the private sector Health care and social assistance ANZSIC division by subdivision for 2018-19. Historical figures mentioned in the text can be found in the 'Australian industry by subdivision' data cube. Movements in data quoted in the text are between 2017-18 and 2018-19.

    All other data in this article can be found in the 'Health care and social assistance industry' data cube, which also includes more detailed data items as well as class level indicators.

    Key figures

      Subdivision 84 Hospitals (private)Subdivision 85 Medical and other health care services (private)Subdivision 86 Residential care services (private)Subdivision 87 Social assistance services (private)Division Q Health care and social assistance (private)
    Employment at end of Juneno.137 384430 872326 069424 7031 319 028
    Wages and salaries$m8 65419 37914 43217 29759 763
    Sales and service income (a)$m17 01269 01922 10221 477129 610
    Total income$m19 79474 52526 10231 733152 153
    Total expenses$m19 06852 04324 93729 266125 315
    Operating profit before tax (OPBT)$m*76722 502*1 163^2 46726 899
    Earnings before interest tax depreciation and amortisation (EBITDA)$m^1 42023 3961 808*1 25327 877
    Industry value added (IVA)$m11 27645 96118 48521 55397 275
    Profit margin (a)%4.532.65.311.520.8
    Note: All data are reported in current prices
    a. See below for information about improvements to estimates for the Health care and social assistance industry
    ^ estimate has a relative standard error of 10% to less than 25% and should be used with caution
    * estimate has a relative standard error of 25% to 50% and should be used with caution
     
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    The division is dominated by the Medical and other health care services subdivision, which accounted for 49.0% ($74.5b) of total income and 41.5% ($52.0b) of total expenses for the division in 2018-19.

    Hospitals

    The private sector Hospitals subdivision was dominated by the Hospitals (except Psychiatric hospitals) class, accounting for 98% of employment, total income and total expenses, with the Psychiatric hospitals class accounting for the remainder.

    The subdivision experienced both increases and decreases in key indicators in 2018-19, compared to 2017-18:

    • Total income grew 1.3% ($246m) to $19.8b.
    • Growth in total expenses outpaced total income, increasing 6.0% ($1.1b) to $19.1b.
    • OPBT declined 51.3% (down $809m) to $767m.
    • EBITDA declined 25.5% (down $487m) to $1.4b.
       

    Sales and service income:

    • Sales and service income for the subdivision was $17.0b in 2018-19.
    • Services provided directly to patients ('patient services income') accounted for most of sales and service income $15.4b (90.6%) and included accommodation and bed fees, theatre fees and prosthetic revenue.
    • The remaining $1.6b (9.4%) was generated by other services such as rent, leasing and hiring and car parking, as well as sales of goods.
       

    Sources of patient services income ($15.4b):

    • Income from private health insurance companies was the largest source of revenue, accounting for 77.5% ($11.9b).
    • Government subsidised fee for service income, including Pharmaceutical Benefits Scheme payments and Department of Veterans' Affairs payments, accounted for 12.7% ($2.0b).
    • Payments made directly by patients ('out of pocket costs') represented 4.8% ($740m).
       

    Additional funding from government:

    • Businesses in the the private sector Hospitals subdivision may also operate public hospitals or receive government funding for treating public patients.
    • Funding from government for operational costs was $2.6b, representing 12.9% of total income ($19.8b).
       

    Types of government funding included activity based funding and block funding. Activity based funding is a system for funding public hospital services based on the number of services provided to patients and the price to be paid for delivering those services. Block funding is provided to support teaching and research undertaken in public hospitals and for some public hospital services where it is more appropriate, and particularly for smaller rural and regional hospitals.

    Expenses:

    • Total expenses were $19.1b.
    • Labour costs represented just over half (50.8%) of total expenses at $9.7b.
    • Purchases of medical and surgical supplies accounted for 11.5% ($2.2b).
    • Purchases of drugs and pharmaceuticals were 4.9% ($931m).
       

    Employment by occupation:

    • 137,384 people were employed in this subdivision in June 2019.
    • The most common occupation category was nursing staff, with 66,608 people, or 48.5% of total employment.
    • Administrative, clerical workers, managers and professionals accounted for 19,722 people (14.4%).
    • There were 16,291 ancillary workers, including cleaners, catering staff, orderlies and wardspersons, which made up 11.9% of total employment.
    • Medical practitioners (a category including general medical practitioners, psychiatrists, pathologists and radiologists among others) included 8,231 people (6.0%).
       
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    Medical and other health care services

    The private sector Medical and other health care services subdivision consists of ten ANZSIC classes, covering a diverse range of services. General practice medical services was the largest individual class, and accounted for 20%-30% of key indicators for the subdivision in 2018-19.

    The businesses in this subdivision include a combination of individual practitioners, operating under their own ABN (Australian Business Number), and the practices or clinics from which they consult.

    The subdivision reported growth across all key indicators in 2018-19, compared to 2017-18:

    • Total income grew 11.2% ($7.5b) to $74.5b.
    • Total expenses rose 10.6% ($5.0b) to $52.0b.
    • Employment grew 24,872 people (6.2%) to 430,872.
       

    Sales and service income:

    • Total sales and service income was $69.0b in 2018-19.
    • The main component was services provided directly to patients ('patient services income') which was $57.0b (82.5% of sales and service income).
    • The remainder was non-patient related income, including practice management services ($6.6b, or 9.5% of sales and service income) - this represented income earned by providing administrative support, facilities or staffing to contracted practitioners, often collecting patient billings on behalf of practitioners and retaining a proportion as their practice management income fee.
       

    Patient services income ($57.0b) was further broken down, with the largest components as follows:

    • general practice medical services $13.0b (22.9% of patient services income)
    • specialist medical services $11.8b (20.7% of patient services income)
    • dental services $8.6b (15.1% of patient services income)
    • medical imaging services $6.1b (10.8% of patient services income).
       
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    Sources of patient services income ($57.0b):

    • Over one third (35.2% or $20.1b) was paid directly by patients ('out of pocket costs').
    • Medicare Benefits payments accounted for $18.0b (31.6%).
    • Private health insurance companies contributed $9.6b (16.8%).
       

    Expenses

    Total expenses were $52.0b in 2018-19. The largest individual expenses were:

    • labour costs 42.0% ($21.9b)
    • practice management services 11.5% ($6.0b)
    • purchases of goods and materials 10.5% ($5.5b), with the largest purchase being medical and surgical supplies (including drugs and pharmaceuticals) 4.9% ($2.6b)
    • payments to other businesses for medical and health care services 8.6% ($4.5b)
    • rent, leasing and hiring expenses 7.1% ($3.7b).
       

    Practice management services are reported by an independent medical or allied health practitioner as an expense for utilising practice management services where the practice manager either does not collect patient income but simply charges a fee for managing the practice, or collects fees on behalf of the practitioner but does not deduct their practice management service fee prior to paying the patient income to the practitioner. Note that practice management income and expenses are not captured where the practice collects the full patient fees, retains their service fee, and passes the difference to the independent practitioner.

    Employment by occupation:

    • Due to the diverse nature of activity within this subdivision the employment occupations were also varied.
    • Total employment was 430,872 in June 2019.
    • Administrative, clerical workers, managers and professionals was the largest occupation category, accounting for 148,336 people (34.4% of employment).
    • General medical practitioners was the largest type of medical practitioner occupation, accounting for 36,244 people (8.4%).
    • Total allied health, social and welfare professionals represented 69,242 people (16.1% of employment), with physiotherapists the most common of these occupations (17,575 people).
       

    Profit margin:

    • Profit margin for this subdivision was high at 32.6%.
    • The individual classes with the highest profit margins were specialist medical services (43.3%) and general practice medical services (40.9%).
       

    Many independent medical or allied health practitioners operate as sole proprietors under their own ABN, and generally do not pay themselves wages and salaries, rather they draw profits from the business as their income. In these cases expenses are therefore lower, which results in a higher profit margin. This also aligns with the business size profile of this subdivision, where 66.9% ($49.8b) of total income was reported in the small (0-19 employees) employment size category in 2018-19. Further information relating to business size can be found in the 'Health care and social assistance industry' data cube.

    Residential care services

    The private sector Residential care services subdivision comprises two ANZSIC classes, Aged care residential services and Other residential care services. The Aged care residential services class accounted for 87% of the subdivision's employment, total income and total expenses in 2018-19.

    The private sector Residential care services subdivision reported growth in all key indicators in 2018-19, compared to 2017-18, and was the fastest growing of the four Health care and social assistance subdivisions:

    • Total income grew 8.6% (2.1b) to $26.1b.
    • Total expenses grew 11.8% ($2.6b) to $24.9b.
    • Wages and salaries rose 13.4% ($1.7b) to $14.4b.
    • Employment rose by 44,069 people (15.8%) to 326,069.
       

    Sales and service income:

    • Total sales and service income was $22.1b in 2018-19.
    • Income from services provided directly to clients or residents ('client service income') generated almost all (96.4% or $21.3b) of sales and service income.
       

    Client service income ($21.3b) was further broken down, with the largest components as follows:

    • Income from residential aged care services accounted for $14.6b (68.6% of client service income).
    • Income from residential care services for the disabled was $1.5b (6.9% of client service income).
    • Retirement village operations income was $1.3b (5.9% of client service income).
    • Over 10% of client service income came from non-residential care services, with $1.4b (6.8%) from in-home aged care services and $874m (4.1%) from in-home disability care services.
       

    Expansion of activity by residential care services businesses into in-home care services (normally performed by businesses in the Social assistance services subdivision) has likely been influenced by increased government funding via programs including the National Disability Insurance Scheme (NDIS) and Home Care Packages, which encourage elderly people to stay in their own homes for longer.

    Sources of client service income ($21.3b):

    • The costs to households of using services provided by this subdivision was heavily subsidised by government.
    • Government subsidised fee for service income accounted for 70.1% ($14.9b) of client service income, with residential aged care subsidies and supplements accounting for $10.4b, NDIS income $1.5b and Home Care Packages $1.1b.
    • Just over a quarter of total client service income (26.6% or $5.6b) was paid directly by clients or residents as 'out of pocket costs'.
       
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    Expenses:

    • Total expenses were $24.9b in 2018-19.
    • Labour costs were the largest expense item at $16.4b (65.9% of total expenses).
    • Depreciation and amortisation accounted for $1.4b (5.5% of total expenses).
    • Purchases of food and beverages were $612m, which was larger than the $296m spent on catering services, indicating more businesses prepare food for clients in-house than contracting out this service.
    • $517m was spent on repair and maintenance services.
    • $433m was spent on electricity, fuel and water.
       

    Due to the costs involved in maintaining and running residential care facilities, the amounts spent on repair and maintenance services and electricity, fuel and water were the largest values reported for these items across the four Health care and social assistance subdivisions, even though expenses overall were second lowest for this subdivision.

    Capital expenditure:

    • This subdivision reported the largest amount in capital expenditure for the division at $4.9b, which aligned with the large depreciation and amortisation reported ($1.4b).
    • Expenditure on dwellings, other buildings and structures accounted for $3.0b representing investment in expansions and refurbishments of residential care facilities.
       

    Employment by occupation:

    • Total employment for the subdivision was 326,069 in June 2019.
    • Aged care personal care assistants were the most common occupation category, employing 107,329 people (32.9% of subdivision employment).
    • Nursing staff accounted for 44,856 people (13.8%).
       

    Social assistance services

    The private sector Social assistance services subdivision comprises two ANZSIC classes, Child care services and Other social assistance services. Other social assistance services includes disability assistance, in-home aged care and counselling, rehabilitation and welfare services. Many businesses that operate in this subdivision are religious, charitable and not for profit organisations.

    The subdivision experienced growth in most key indicators in 2018-19, compared to 2017-18:

    • Total income grew by 9.1% ($2.7b) to $31.7b.
    • Total expenses rose 11.0% ($2.9b) to $29.3b.
    • Employment rose by 35,703 people (9.2%) to 424,703.
       

    Sales and service income:

    • Sales and service income was $21.5b in 2018-19.
    • Income from services provided directly to clients ('client service income') generated 91.4% ($19.6b) of sales and service income.
       

    Client service income ($19.6b) was further broken down, with the largest components as follows:

    • Child care services income was $11.8b (60.0% of client service income).
    • In-home disability care services income was $2.6b (13.2% of client service income).
    • Plan, case management and support coordination services, which includes income received from managing NDIS and Home Care Package plans on behalf of clients, amounted to $595m (3.0% of client service income).
       

    Sources of client service income ($19.6b):

    • The costs to households of using services provided by this subdivision were heavily government subsidised.
    • Government subsidised fee for service income represented 65.7% ($12.9b), with Child Care Subsidy payments accounting for $6.3b, NDIS $4.1b, and Home Care Packages $811m.
    • Almost a third of total client service income (31.3% or $6.1b) was paid directly by clients as 'out of pocket' costs.
       
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    Expenses:

    • Total expenses were $29.3b in 2018-19.
    • Labour costs represented $19.4b (66.2% of total expenses).
    • Rent, leasing and hiring expenses were also significant for this subdivision, at $1.6b (5.6% of total expenses).
    • Purchases of goods and materials were $1.4b (4.9%).
    • Purchases of food and beverages was the largest individual purchase ($388m), with child care centres often supplying meals and snacks for the children in attendance.
       

    Employment by occupation:

    • Total employment for the subdivision was 424,703 in June 2019.
    • Child care educator was the most common occupation category, representing 134,799 people (31.7% of employment).
    • Personal care assistants made up 81,229 people (19.1% of total employment), with those working in disability care (61,258) more than three times the number of those in aged care (19,971).
    • 12,997 people (3.1%) were employed as support coordinators, including case managers, who assist clients to manage their government funding packages such as NDIS plans and Home Care Packages.
       

    Improved quality for sales and service income and government funding estimates

    Businesses operating in the Health care and social assistance industry division receive government funding such as the Child Care Subsidy, Medicare Benefits payments, a number of aged care subsidies and supplements, NDIS payments and grants to pay staff wages and salaries.

    The 2018-19 EAS questionnaire provided explicit instructions on how businesses should report such government payments.

    This has resulted in improved estimates of sales and service income, funding from government for operational costs, profit margin and sales and service income per person employed for 2018-19.

    Caution should therefore be exercised when comparing 2018-19 estimates for these items (which can be seen in the 'Australian industry by division' and 'Australian industry by subdivision' data cubes), with estimates from previous years as these estimates are not directly comparable.

    The improved questionnaire instructions will be continued in future EAS collections and subsequent reporting for the Health care and social assistance division is expected to be consistent with the 2018-19 EAS.

    Changes in this release

    Improved quality for health care and social assistance estimates

    Businesses operating in the Health care and social assistance industry division receive government funding such as the Child Care Subsidy, Medicare Benefits payments, a number of aged care subsidies and supplements, NDIS payments and grants to pay staff wages and salaries.

    The 2018-19 EAS questionnaire for the Health care and social assistance division provided explicit instructions on how businesses should report such government payments.

    This has resulted in improved estimates of sales and service income, funding from government for operational costs, profit margin and sales and service income per person employed for 2018-19.

    Caution should therefore be exercised when comparing 2018-19 estimates for these items (which can be seen in the 'Australian industry by division' and 'Australian industry by subdivision' data cubes), with estimates from previous years as these estimates are not directly comparable.

    The improved questionnaire instructions will be continued in future EAS collections and subsequent reporting for the Health care and social assistance division is expected to be consistent with the 2018-19 EAS.

    Table changes

    Capital work done for own use: wages and purchases breakdown

    In previous issues, estimates of capital work done for own use, as well as the two components that make up these estimates, that is capitalised wages and salaries and capitalised purchases, have been published separately. Given the variable nature of capital expenditure, the components and the total (i.e. capital work done for own use) have been subject to confidentiality requirements and therefore not published in many cases. From 2018-19, the two component series will no longer be published. The total capital work done for own use estimates will continue to be published.

    This affects table 3 (the industry value added table) in each of the 'Australian industry by division', 'Australian industry by subdivision', and 'Mining industry' data cubes.

    Percentage of businesses making a profit or breaking even

    In previous issues, the percentage of businesses making a profit and percentage of businesses breaking even items have been published separately. Given the small number of businesses that break even each year, confidentiality requirements has resulted in the breakdown not able to be published in many cases. As a result, from the 2018-19 release the two separate series have been replaced by a combined item percentage of businesses making a profit or breaking even.

    This affects table 4 (the industry performance table) in both of the 'Australian industry by division' and 'Australian industry by subdivision' data cubes, which include the years 2016-17, 2017-18 and 2018-19 only. In earlier years the percentage of businesses making a profit or breaking even can be calculated by subtracting percentage of businesses making a loss from 100.

    History of changes

    23/10/2020: The Mining industry datacube in the Data Downloads section was replaced with an updated version. The original version contained incorrect data for Other expenses in Table 4 'Mining, Industry performance by selected industry class' for the 2018-19 financial year only. No other items or tables or text were affected.

    Data downloads

    23/10/2020: The Mining industry datacube was replaced with an updated version. The original version contained incorrect data for Other expenses in Table 4 Mining, Industry performance by selected industry class for the 2018-19 financial year only. No other items or tables or text were affected.

    Australian industry by division

    Australian industry by subdivision

    Manufacturing industry

    Off-June year adjusted estimates by industry subdivision

    Mining industry

    Experimental estimates for auxiliary finance and insurance services

    Health care and social assistance industry

    All data cubes

    Previous catalogue number

    This release previously used catalogue number 8155.0.