The Australian Bureau of Statistics (ABS) is collaborating with the Department of Defence (Defence) to develop the Australian Defence Industry Account (ADIA). During the first half of 2021, the ABS used publicly available Defence contract information as reported on AusTender to determine the feasibility of developing an ADIA. The conceptual framework and compilation method were developed, and work is now underway to build a robust ADIA with expenditure data obtained directly from Defence. This will be an ongoing account based on more detailed and timely data direct from Defence. The first release will be in the second half of 2022.
The account will measure the direct economic contribution of Defence expenditure to the Australian economy in terms of Gross Value Added (GVA) and employment. The account will also provide information on the structure and characteristics of the businesses providing the goods and services to Defence.
While estimates of Defence expenditure are implicitly included within the National Accounts of Australia, the value of this expenditure is spread out across the industries supplying goods and services to Defence. This is because the industry classifications used within National Accounts group similar productive activities together. For example, the economic contribution associated with the production of uniforms for Defence would be captured within the manufacturing industry. In contrast the ADIA groups activity by purpose; in this case mapping the supply of uniforms to Defence expenditure. The underlying data needs are consistent in both approaches resulting in a framework that is aligned with the ABS National Accounts and wider economic indicators.
For any questions, feedback, or comments please contact the ABS: