ECONOMIC SIGNIFICANCE OF THE PROPERTY ... Econ...The Queensland Government property related taxes of $5.7 billion represents a contribution of approximately 29.1% of total combined

ECONOMIC SIGNIFICANCE OF THE PROPERTY INDUSTRY TO THE QUEENSLAND ECONOMY PROPERTY COUNCIL OF AUSTRALIA SEPTEMBER 2020

ECONOMIC SIGNIFICANCE OF THE PROPERTY INDUSTRY TO THE QUEENSLAND ECONOMY

i

DOCUMENT CONTROL

Job ID: J001590

Job Name: Economic Significance of the Property Industry to the Australian Economy 2018-19

Client: Property Council of Australia

Client Contact: Richard Lindsay

Project Manager: Kieron Lacey

Email: [email protected]

Telephone: 07 3831 0577

Document Name: PCA Econ Sig of Prop Sector 2018-19 QLD v2.0

Last Saved: 19/10/2020 1:12 PM

Version Date Reviewed Approved

Draft v1.0 13/08/2020 KL KL

Draft v2.0 25/09/2020 KL KL

Disclaimer:

Whilst all care and diligence have been exercised in the preparation of this report, AEC Group Pty Ltd does not warrant the

accuracy of the information contained within and accepts no liability for any loss or damage that may be suffered as a result of

reliance on this information, whether or not there has been any error, omission or negligence on the part of AEC Group Pty Ltd

or their employees. Any forecasts or projections used in the analysis can be affected by a number of unforeseen variables, and

as such no warranty is given that a particular set of results will in fact be achieved.

mailto:[email protected]


ii

KEY FINDINGS

The property sector has one of the largest economic footprints of any sector of the Queensland economy.

• The property sector directly contributed $41.6 billion to Gross State Product (GSP) in 2018-19 (11.8% of the

total contribution to GSP by all industries in the state), and is estimated to have contributed a further $51.4

billion to Queensland’s GSP through flow-on demand for goods and services.

• The property sector also directly employed approximately 297,700 full time equivalent (FTE) employees in

2018-19 (13.9% of Queensland’s total), and supported more than 313,300 FTE jobs through flow-on activity.

• Approximately 25.3% of wages and salaries paid to Queensland workers is generated by the property sector.

• The majority of the property sector’s economic contribution is generated by residential activity.

• The property sector contributed approximately $13.0 billion in combined Queensland Government tax

revenues and local government rates, fees and charges revenue in 2018-19. This equates to 48.5% of total

State taxes and local government rates, fees and charges revenues in 2018-19.


iii

EXECUTIVE SUMMARY

As this report analyses the economic contribution of the property sector in 2018-19, the impacts of COVID-19

have not been reflected in this report. However, it should be noted that it is likely that nominal estimates for the

property industry may fall in coming years compared to those presented in this report due to the impacts on the

Australian (and global) economy from COVID-19. Forecasts from the Federal Government (2020) indicate that,

in nominal terms, Australian GDP is projected to have increased by 2% in 2019-20, well below the increase of

5.3% in 2018-19, and may decline by 4.75% in 2020-21.

The Queensland Property Industry…

The Queensland property industry consists of organisations and individuals involved in developing, operating and

facilitating activities within the property industry that meet the residential and non-residential property needs of

Queensland. Typically, this includes residential and non-residential construction along with finance, property and

business services associated with property development and operation. While many of these industries are also

involved in non-property related activities, this report examines only the contribution of the property related

components of these industries to the Queensland economy.

The definition of the property industry used in this report does not include ownership of dwellings, which are rents

paid by tenants to landlords and imputed rents to owner occupiers.

The Property Industry is the second largest industry in Queensland…

The property industry is the second largest industry in Queensland. The industry is estimated to have contributed

$41.6 billion directly to the state economy in 2018-19, equating to 11.8% of the total contribution to Gross State

Product (GSP) by all industries in Queensland for the year (of $351.1 billion)1.

Figure ES.1. Direct Contribution to Gross State Product by Industry, 2018-19 ($ Billion)

Note: * Only non-property related activity is included for this industry classification. All property related activity is included in the property industry. Sources: AEC, AEC (unpublisheda), ABS (2020a, 2020b, 2020c, 2019a, 2019b, 2019c, 2019d, 2017 and 2012), APRA (2020a, 2020b, 2019a, 2019b, 2019c and 2013), ATO (2019b), RBA (2020, 2019 and 2018).

1 The total contribution to GSP by all industries in Queensland of $351.1 billion differs from total GSP in the State Accounts of $369.6 billion (ABS,

2019a) as it excludes non-industry based contributions to GSP (e.g. taxes and subsidies on products levied on households rather than industry).

$1.5

$2.8

$4.8

$6.5

$7.3

$8.6

$10.2

$11.6

$12.6

$12.7

$15.2

$15.3

$17.6

$17.8

$19.2

$19.5

$22.4

$27.3

$28.6

$41.6

$47.9

$0 $10 $20 $30 $40 $50 $60

Rental, hiring and real estate services *

Arts and recreation services

Information media and telecommunications

Construction *

Other services

Agriculture, forestry and fishing

Accommodation and food services

Electricity, gas, water and waste services

Administrative and support services

Wholesale trade

Professional, scientific and technical services *

Retail trade

Financial and insurance services *

Education and training

Public administration and safety

Transport, postal and warehousing

Manufacturing

Health care and social assistance

Ownership of dwellings

Property industry

Mining

Gross Product ($B)


iv

The Property Industry is the largest employer in Queensland…

The property industry was the highest direct contributor to Queensland jobs in 2018-19. The industry directly

employed 297,700 full time equivalent (FTE) workers in the year, accounting for 13.9% of Queensland’s total FTE

employment.

Figure ES.2. Direct Contribution to Employment by Industry, 2018-19 (‘000 FTEs)


The Property Industry also contributes strongly through flow-on economic activity…

In addition to the direct contribution of the property industry to the Queensland economy, the property industry is

estimated to have contributed a further $51.4 billion to Queensland’s GSP through flow-on demand for goods and

services, including production induced2 and consumption induced3 effects. Combined, the property industry

contributed $92.9 billion to GSP in 2018-19 through direct and flow-on activity or 26.5% of total GSP.

The property industry also indirectly contributes to employment in Queensland through flow-on demand for goods

and services. The property industry supported jobs for more than 313,300 FTE employees in 2018-19 through

flow-on activity. Approximately 611,000 FTE jobs were supported by the property industry in 2018-19 through direct

and flow-on activity combined.

The Residential Property Sub-Sector provides the majority of Property Industry economic activity…

The residential sub-sector of the property industry directly contributed 60.9% of total property industry gross product

and 63.1% of employment in 2018-19. Of the non-residential sub-sector, the industrial property sub-sector is the

largest, estimated to have contributed 7.6% of total direct property industry gross product and 7.1% of employment.

2 Represents the combination of activity required from all industries that supply goods and services to the property industry, as well as the induced activity from all industries to support the production of industries supplying the property industry. 3 Represents the subsequent induced activity due to spending by the wage and salary earners across all industries arising from the compensation received for their labour as part of the direct and production induced effects.

0.0

8.0

10.9

28.6

28.8

33.2

35.0

57.8

77.7

78.6

79.3

83.1

116.6

124.8

146.8

147.5

161.4

168.1

188.2

275.3

297.7

0 100 200 300 400



Construction *





Mining

Wholesale trade



Other services




Manufacturing



Retail trade


Property industry

FTEs ('000)


v

The Property Industry is a key contributor to taxation revenues…

The property industry contributed approximately $13.0 billion in combined Queensland Government tax revenues

and local government rates, fees and charges revenue in 2018-19. This equates to 48.5% of total State taxes and

local government rates, fees and charges revenues in 2018-19.

The Queensland Government property related taxes of $5.7 billion represents a contribution of approximately

29.1% of total combined Queensland Government tax revenues in 2018-19.

Table ES.1. Queensland State and Local Government Property Related Revenues, 2018-19

Level of Government/ Tax Type Value

Queensland Government

Payroll Tax ($M) $433.1

Transfer/ Stamp Duties ($M) $3,195.0

Land Tax ($M) $1,334.0

Other Property Related Taxes ($M) $717.0

Total Property Related Taxes ($M) $5,679.1

Property Contribution to Total State Taxes (%) 29.1%

Queensland Local Government

Rates, Fees and Charges Revenue ($M) $7,324.5

Combined State and Local Government

Total Property Related Taxes ($M) (a) $13,003.6

Property Contribution to Total State and Local Government Taxes (%) 48.5% Note: (a) Includes local government rates, fees and charges. Sources: AEC, ABS (2020e), DLGRMA (2020), Queensland Government (2019).


vi

TABLE OF CONTENTS

DOCUMENT CONTROL .......................................................................................................................................... I

KEY FINDINGS ....................................................................................................................................................... II

EXECUTIVE SUMMARY ....................................................................................................................................... III

TABLE OF CONTENTS ........................................................................................................................................ VI

1. INTRODUCTION ............................................................................................................................................ 1

1.1 BACKGROUND .............................................................................................................................................. 1

1.2 PURPOSE OF THIS REPORT ............................................................................................................................ 1

1.3 GEOGRAPHIC SCOPE .................................................................................................................................... 1

1.4 METHODOLOGY ............................................................................................................................................ 2

2. CONTRIBUTION TO QUEENSLAND ECONOMY ........................................................................................ 3

2.1 CONTRIBUTION OF THE PROPERTY INDUSTRY TO QUEENSLAND ......................................................................... 4

2.2 CONTRIBUTION OF PROPERTY SUB-SECTORS TO QUEENSLAND ........................................................................ 8

2.3 COMPARISON WITH OTHER INDUSTRIES .......................................................................................................... 8

3. CONTRIBUTION TO STATE ELECTORATES ........................................................................................... 11

4. TAXATION CONTRIBUTION ...................................................................................................................... 14

4.1 CONTRIBUTION TO STATE AND LOCAL GOVERNMENT REVENUES ..................................................................... 14

4.2 COMPARISON OF STATE TAX CONTRIBUTION WITH OTHER INDUSTRIES ............................................................. 14

REFERENCES...................................................................................................................................................... 16

APPENDIX A: DEFINITION OF THE PROPERTY INDUSTRY ............................................................................ 18

APPENDIX B: SIGNIFICANCE ASSESSMENT METHODOLOGY ..................................................................... 25

APPENDIX C: DIRECT CONTRIBUTION TO QUEENSLAND BY INDUSTRY ................................................... 30

APPENDIX D: ALLOCATION OF TAXES ............................................................................................................ 31

APPENDIX E: AEC’S GRP AND EMPLOYMENT MODELS ............................................................................... 32


1

1. INTRODUCTION

1.1 BACKGROUND

The Property Council of Australia commissioned AEC Group Pty Ltd (AEC) to evaluate the economic significance

of Australia’s property industry. The industry consists of organisations and individuals involved in developing,

operating and facilitating activities that meet Australia’s residential and non-residential property needs.

1.2 PURPOSE OF THIS REPORT

The report uses the Australian and New Zealand Standard Industrial Classifications (ANZSIC) definition of industry

classifications (ABS, 2008). The property industry is defined as:

• Parts of the construction industry focused on the development of residential and non-residential buildings, as

well as all construction services.

• Architectural, engineering and professional services involved in the development of property.

• Non-residential property operators and real estate services.

• Parts of banking, non-bank finance and other financial and insurance services that facilitate the development,

acquisition and ownership of property4.

While many of these industries are also involved in non-property related activities, this report only focuses on the

contribution of the property related components of these industries to the Australian economy. The definition of the

property industry used in this report does not include ownership of dwellings, which are rents paid by tenants to

landlords and imputed rents to owner occupiers. Appendix A provides a full list of ANZSIC classes included in the

definition of the property industry.

1.3 GEOGRAPHIC SCOPE

The scope of this report focuses on the economic significance of the property industry in Queensland and each

Queensland State Electorate.

Data for State Electoral divisions as required for this study is not available from the Australian Bureau of Statistics,

and to undertake analysis for the State Electorates, digital boundaries for State Electorates were downloaded from

the Queensland Government Spatial Catalogue (2017) and Statistical Area 2 (SA2) geographic boundaries were

downloaded from the Australian Bureau of Statistics (ABS, 2016). These boundaries were utilised to convert SA2

data to State Electorates. All estimates of property industry activity at the State Electorate level are therefore subject

to a softer confidence due to any inconsistencies introduced by transforming data using these correspondence

files.

4 Parts of banking and credit union operations facilitating acquisition/ ownership of commercial property is excluded due to data limitations (though

residential property is included). This is outlined in more detail in Appendix A.


2

1.4 METHODOLOGY

The estimates in this report are produced using Input-Output transaction tables and models developed by AEC.

Data sources used include State and National Accounts and industry specific ABS and other agency data. Input-

Output models were used to produce estimates of the direct and flow-on contributions of the property industry to

the Queensland economy and each State Electorate. Measures used in this report include Gross State Product

(GSP), employment, and income (i.e., wages and salaries). Appendix B presents a detailed description of the

methodology.

All estimates are presented in nominal terms (i.e., current prices in the year received), unless otherwise stated.

As this report analyses the economic contribution of the property sector in 2018-19, the impacts of COVID-19

have not been reflected in this report. However, it should be noted that it is likely that nominal estimates for the

property industry may fall in coming years compared to those presented in this report due to the impacts on the

Australian (and global) economy from COVID-19. Forecasts from the Federal Government (2020) indicate that,

in nominal terms, Australian GDP is projected to have increased by 2% in 2019-20, well below the increase of

5.3% in 2018-19, and may decline by 4.75% in 2020-21.


3

2. CONTRIBUTION TO QUEENSLAND ECONOMY

This chapter describes the property industry’s significance and economic contribution to the Queensland economy.

It includes estimates of direct and flow-on contributions to other industries where relevant.

The contribution of the property industry’s output to the Queensland economy is estimated across the following

three key measures:

• Gross Product: Refers to the value of all outputs of an industry including taxes/ subsidies on its final

products after deducting the cost of goods and services inputs in the production process. Gross State

Product (GSP) is the measure of a state’s total gross production.

• Incomes: Measures the level of wages and salaries paid to employees of each industry.

• Employment: Refers to the part-time and full-time employment positions supported by an industry, and is

expressed in terms of full time equivalent (FTE) positions.

An additional measure, industry output, is also produced from Input-Output modelling but not referenced in this

chapter. Industry output refers to the total dollar value of all goods and services produced during the year. This

measure overstates the true economic contribution of the industry as it double counts the value of material and

services inputs used in the production of an industry’s goods and services.

The economic contribution is measured in terms of:

• Initial stimulus (direct impacts), which represent the economic activity of the property industry itself, in

terms of revenues/ output, jobs supported, etc.

• Flow-on impacts, which comprise the effects from:

o Production induced effects (Type I), which represent the supply chain effects from direct operational

expenditure on goods and services by the property industry as well as the second and subsequent round

effects of increased purchases by suppliers in response to increased sales.

o Household consumption effects (Type II), which represent the consumption induced activity from

additional household expenditure on goods and services resulting from additional wages and salaries

being paid within the economy.


4

2.1 CONTRIBUTION OF THE PROPERTY INDUSTRY TO QUEENSLAND

The Queensland property industry is estimated to have contributed a total of $92.9 billion to GSP in 2018-19. This

was comprised of a direct contribution of $41.6 billion to Queensland’s GSP, or 11.8% total GSP contributed by

industries (see Table 2.1 and Table 2.2) and a flow-on contribution of $51.4 billion, or 14.6% of total GSP

contributed by industries)5.

The property industry supported approximately 611,000 FTE employment positions in 2018-19 (28.5% of total

employment), comprised of approximately 297,700 directly and 313,300 through flow-on activity. These jobs

provided approximately $44.3 billion in incomes (wages and salaries), representing 25.3% of total incomes in

Queensland.

Table 2.1. Estimated Direct & Flow-On Contribution of the Property Industry to the Queensland Economy,

2018-19

Property Industry Component Gross

Product ($M) Incomes

($M) Emp.

(FTEs)

Direct Contribution

Residential Building Construction $3,473.3 $1,462.7 37,726

Non-Residential Building Construction $2,383.5 $1,183.6 13,702

Construction Services $16,334.3 $8,720.9 167,535

Finance $4,634.1 $1,112.1 7,617

Insurance and Superannuation Funds $367.0 $233.9 1,870

Non-Residential Property Operators and Real Estate Services $9,107.7 $2,679.7 35,809

Professional, Scientific and Technical Services $5,292.0 $2,925.1 33,410

Total Direct Contribution $41,592.0 $18,317.9 297,668

Flow-On Contribution

Production Induced (Type I) $21,140.4 $12,304.4 130,461

Consumption Induced (Type II) $30,217.6 $13,722.2 182,882

Total Flow-On Contribution $51,357.9 $26,026.5 313,343

TOTAL CONTRIBUTION TO QUEENSLAND $92,949.9 $44,344.4 611,011 Notes: Totals may not sum due to rounding. Sources: AEC, AEC (unpublisheda), ABS (2020a, 2020b, 2020c, 2019a, 2019b, 2019c, 2019d, 2017 and 2012), APRA (2020a, 2020b, 2019a, 2019b, 2019c and 2013), ATO (2019b), RBA (2020, 2019 and 2018).

5 The total contribution to GSP by all industries in Queensland excludes non-industry based contributions to GSP (e.g. taxes and subsidies on

products levied on households rather than industry).


5

Table 2.2. Estimated % Contribution of the Property Industry to the Queensland Economy, 2018-19


Product (%) (a) Incomes

(%) Emp. (%)

Direct Contribution

Residential Building Construction 1.0% 0.8% 1.8%

Non-Residential Building Construction 0.7% 0.7% 0.6%

Construction Services 4.7% 5.0% 7.8%

Finance 1.3% 0.6% 0.4%

Insurance and Superannuation Funds 0.1% 0.1% 0.1%

Non-Residential Property Operators and Real Estate Services 2.6% 1.5% 1.7%

Professional, Scientific and Technical Services 1.5% 1.7% 1.6%

Total Direct Contribution 11.8% 10.4% 13.9%

Flow-On Contribution

Production Induced (Type I) 6.0% 7.0% 6.1%

Consumption Induced (Type II) 8.6% 7.8% 8.5%

Total Flow-On Contribution 14.6% 14.8% 14.6%

TOTAL CONTRIBUTION TO QUEENSLAND 26.5% 25.3% 28.5% Notes: Totals may not sum due to rounding. (a) Represents percent of all industry based contributions to GSP only. Sources: AEC, AEC (unpublisheda), ABS (2020a, 2020b, 2020c, 2019a, 2019b, 2019c, 2019d, 2017 and 2012), APRA (2020a, 2020b, 2019a, 2019b, 2019c and 2013), ATO (2019b), RBA (2020, 2019 and 2018).

The property industry’s total (i.e., direct + flow-on) contribution to GSP has grown by just under 65% over the past

13 years, increasing from $56.6 billion in 2006-07 to $92.9 billion in 2018-19 (see Figure 2.1). Despite this growth

in value terms, the property industry’s share of total Queensland industry contribution to GSP has been trending

downward over time, particularly since 2015-16, dipping to a 13-year low of 26.5%. The recent dip in share can

largely be attributed to the significant expansion of the mining industry’s contribution to Queensland GSP between

2015-16 and 2018-19 (increasing from $19.1 billion to $47.9 billion direct contribution over this period) rather than

any indication of weakness in Queensland’s property industry which has continued to display steady growth in

value terms.

Figure 2.1. Estimated Direct & Flow-On Contribution of the Property Industry to Queensland GSP, 2006-

07 to 2018-19, Current Prices (i.e. Nominal Terms)

Sources: AEC, AEC (unpublisheda), ABS (2020a, 2020b, 2020c, 2019a, 2019b, 2019c, 2019d, 2017 and 2012), APRA (2020a, 2020b, 2019a, 2019b, 2019c and 2013), ATO (2019b), RBA (2020, 2019 and 2018).

22%

24%

26%

28%

30%

32%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

2006-0

7

2007-0

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9

2009-1

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% C

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Pro

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ross P

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($M

)

Direct Type I Flow-On Type II Flow-On % of Queensland


6

Annual growth in gross product supported by the Queensland property industry (both directly and through flow-on

activity) is presented in Figure 2.2, compared to growth in Queensland’s GSP. The figure shows growth in the

property industry has been somewhat cyclic and been relatively in line with overall growth in the Queensland

economy, though trending slightly below that of the overall economy since 2015-16. As noted above, the primary

reason for the lower growth relative to Queensland’s total since 2015-16 has been the significant growth in

Queensland’s mining industry over this period. Excluding mining, the property industry has grown approximately in

line with the rest of Queensland’s economy since 2015-16.

Figure 2.2. Annual Growth in Property Industry Supported Gross Product (Direct + Flow-On) &

Queensland GSP, 2007-08 to 2018-19, Current Prices (i.e. Nominal Terms)


Employment supported by property industry activities (including direct and flow-on jobs) has fluctuated between

563,900 and 620,200 FTE jobs (see Figure 2.3). Peak employment was reached in 2017-18, and although down

from 2017-18, employment in 2018-19 was at the second highest level over the past 13 years.

The property industry supported nearly 31% of Queensland’s total employment in 2006-07 but has since trended

downwards to a share of 28.5% in 2018-19.

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2007-0

8

2008-0

9

2009-1

0

2010-1

1

2011-1

2

2012-1

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2014-1

5

2015-1

6

2016-1

7

2017-1

8

2018-1

9

An

nu

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% G

row

th

Property Industry Total Economy


7

Figure 2.3. Estimated Direct & Flow-On Contribution of the Property Industry to Queensland Employment,

2006-07 to 2018-19


Annual change in employment supported by the Queensland property industry (both directly and through flow-on

activity) is presented in Figure 2.4, compared to the annual change in Queensland’s employment. The figure shows

cyclic trends in property industry growth every several years. Employment growth in the property industry has

generally been slower than overall employment in Queensland over time.

Figure 2.4. Annual Growth in Property Industry Supported Employment (Direct + Flow-On) and

Queensland Employment, 2007-08 to 2018-19


26%

27%

28%

29%

30%

31%

32%

33%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2006-0

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Direct Type I Flow-On Type II Flow-On % of Queensland

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2007-0

8

2008-0

9

2009-1

0

2010-1

1

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Property Industry Total Economy


8

2.2 CONTRIBUTION OF PROPERTY SUB-SECTORS TO QUEENSLAND

The property industry was disaggregated into property type sub-sectors in Table 2.3 to examine their direct6

contributions to the Queensland economy using the approach outlined in Appendix B. The Residential sub-sector

is the largest property sub-sector, contributing approximately 61% of direct property industry activity in Queensland,

producing around $25.3 billion in gross product and directly supporting approximately 187,900 FTE jobs. Of the

Non-Residential sub-sector, the Industrial property sub-sector is the largest, estimated to have contributed 7.6% of

total direct property industry GSP impacts, producing $3.1 billion in GSP and supporting nearly 21,200 FTE jobs.

Table 2.3. Estimated Direct Contribution of the Property Industry to the Queensland Economy by Property

Sub-Sector, 2018-19


Product ($M) Incomes

($M) Employment

(FTEs)

Direct Contribution

Residential $25,321.3 $11,033.1 187,889

Retail $2,448.4 $1,096.2 16,519

Commercial $2,940.2 $1,316.4 19,837

Industrial $3,142.9 $1,407.2 21,205

Health $1,730.5 $774.8 11,676

Education $2,968.0 $1,328.8 20,025

Entertainment/ Recreation $672.6 $301.1 4,538

Short Term Accommodation $1,147.6 $513.8 7,743

Religion $62.5 $28.0 421

Other $1,158.1 $518.5 7,814

Total Direct Contribution $41,592.0 $18,317.9 297,668

% of Total Direct Contribution

Residential 60.9% 60.2% 63.1%

Retail 5.9% 6.0% 5.5%

Commercial 7.1% 7.2% 6.7%

Industrial 7.6% 7.7% 7.1%

Health 4.2% 4.2% 3.9%

Education 7.1% 7.3% 6.7%

Entertainment/ Recreation 1.6% 1.6% 1.5%

Short Term Accommodation 2.8% 2.8% 2.6%

Religion 0.2% 0.2% 0.1%

Other 2.8% 2.8% 2.6%

Total Direct Contribution 100.0% 100.0% 100.0% Notes: Totals may not sum due to rounding. Sources: AEC, AEC (unpublisheda), ABS (2020a, 2020b, 2020c, 2020d, 2019a, 2019b, 2019c, 2019d, 2017 and 2012), APRA (2020a, 2020b, 2019a, 2019b, 2019c and 2013), ATO (2019b), RBA (2020, 2019 and 2018).

2.3 COMPARISON WITH OTHER INDUSTRIES

This section presents comparisons of the direct contribution of the Queensland property industry to the Queensland

economy against other industries in the economy. This section only presents the direct contribution of the property

industry compared to the direct contribution of other industries. Flow-on contributions cannot be presented as this

would introduce double counting across Queensland’s economic activity (as flow-on contributions of the property

industry represent direct activity of the industries it purchases from, and vice versa).

A summary table of the direct contribution of the property industry compared to other industries is provided in

Appendix C.

6 Only direct contributions have been examined as insufficient data is available to appropriately identify any variances between sub-sectors

contribution to flow-on effects.


9

2.3.1 Gross State Product

Queensland’s total GSP contributed by industries was $351.1 billion in 2018-197. Figure 2.5 shows the property

industry was the second largest industry in Queensland contributing $41.6 billion directly to the state economy, or

11.8% of total industry contribution to GSP. The property industry directly contributed approximately 13% less to

GSP than the largest sector, mining ($47.9 billion or 13.6% of total).

Figure 2.5. Direct Contribution to Gross State Product by Industry, 2018-19 ($ Billion)


2.3.2 Incomes

Figure 2.6 shows the property industry was the second highest direct contributing sector to incomes (wages and

salaries) in Queensland in 2018-19, paying approximately $18.3 billion to Queensland households (10.4% of

Queensland’s total wages and salaries paid directly to workers in 2018-19). The highest income paying sector in

2018-19 was health care and social assistance, paying approximately $23.1 billion.

7 The total contribution to GSP by all industries in Queensland of $351.1 billion differs from total GSP in the State Accounts of $369.6 billion (ABS,

2019a) as it excludes non-industry based contributions to GSP (e.g. taxes and subsidies on products levied on households rather than industry).

$1.5

$2.8

$4.8

$6.5

$7.3

$8.6

$10.2

$11.6

$12.6

$12.7

$15.2

$15.3

$17.6

$17.8

$19.2

$19.5

$22.4

$27.3

$28.6

$41.6

$47.9

$0 $10 $20 $30 $40 $50 $60




Construction *

Other services





Wholesale trade


Retail trade





Manufacturing



Property industry

Mining

Gross Product ($B)


10

Figure 2.6. Direct Contribution to Incomes by Industry, 2018-19 ($ Billion)


2.3.3 Employment

Figure 2.7 shows that the property industry was the highest direct contributor to Queensland jobs in 2018-19. The

industry employed 297,700 FTE workers (13.9% of Queensland’s total). This was approximately 22,400 more FTE

workers than the next largest employing industry in Queensland, health care and social assistance, which

employed 275,300 FTE workers (12.8% of the Queensland total).

Figure 2.7. Direct Contribution to Employment by Industry, 2018-19 (‘000 FTEs)


$0.0

$0.9

$1.6

$1.7

$1.9

$3.3

$3.4

$5.1

$5.5

$6.7

$7.9

$9.5

$9.5

$10.0

$10.6

$11.8

$13.4

$15.4

$15.6

$18.3

$23.1

$0 $5 $10 $15 $20 $25






Construction *


Other services



Wholesale trade


Mining

Retail trade



Manufacturing



Property industry


Incomes ($B)

0.0

8.0

10.9

28.6

28.8

33.2

35.0

57.8

77.7

78.6

79.3

83.1

116.6

124.8

146.8

147.5

161.4

168.1

188.2

275.3

297.7

0 100 200 300 400



Construction *





Mining

Wholesale trade



Other services




Manufacturing



Retail trade


Property industry

FTEs ('000)


11

3. CONTRIBUTION TO STATE ELECTORATES

The following table provides a summary of the direct contribution of the property industry to each State Electorate

in Queensland, in terms of gross product, incomes and employment. The direct contribution the property industry

makes to each electorate’s economy is presented both in value and as a proportion of total electorate economy.

Table 3.1. Direct Contribution of Property Industry by State Electorate, 2018-19

Property Industry Contribution % of Total Electorate

State Electorate Gross

Product ($M)

Incomes ($M)

Emp. (FTEs)

Gross Product

(%)

Incomes (%)

Emp. (%)

Algester $400.0 $193.6 3,327 9.1% 8.2% 11.7%

Aspley $280.7 $124.9 2,131 13.1% 11.3% 15.3%

Bancroft $311.6 $144.2 2,529 17.2% 15.0% 19.8%

Barron River $261.2 $114.8 1,997 15.3% 13.4% 16.7%

Bonney $482.7 $213.7 3,554 14.5% 11.1% 14.9%

Broadwater $442.9 $185.0 3,090 20.1% 17.7% 21.7%

Buderim $295.4 $137.4 2,400 16.2% 13.3% 19.3%

Bulimba $753.6 $338.7 5,441 15.8% 13.6% 17.5%

Bundaberg $343.0 $137.8 2,190 12.1% 8.4% 10.6%

Bundamba $236.7 $108.9 1,966 11.3% 9.6% 13.5%

Burdekin $341.1 $155.3 2,641 1.7% 3.2% 6.6%

Burleigh $683.3 $306.9 5,137 19.3% 16.2% 21.4%

Burnett $161.4 $71.5 1,318 10.3% 10.3% 11.2%

Cairns $841.1 $361.4 5,911 12.0% 8.8% 11.9%

Callide $411.9 $193.5 3,265 5.2% 7.9% 11.5%

Caloundra $398.4 $177.5 3,151 17.6% 14.8% 18.8%

Capalaba $445.9 $205.9 3,631 20.4% 17.5% 22.2%

Chatsworth $324.5 $145.2 2,428 16.6% 15.1% 18.2%

Clayfield $1,009.1 $484.0 8,394 9.9% 8.9% 13.0%

Condamine $362.0 $179.0 3,309 8.8% 9.4% 13.1%

Cook $293.0 $131.6 2,473 7.9% 7.0% 10.7%

Coomera $1,006.3 $497.7 9,193 18.4% 17.0% 24.9%

Cooper $672.5 $316.6 4,617 15.7% 14.6% 17.9%

Currumbin $303.9 $138.3 2,311 13.2% 11.3% 14.2%

Everton $320.9 $140.5 2,390 15.1% 12.4% 16.2%

Ferny Grove $232.2 $103.6 1,758 9.4% 7.0% 10.5%

Gaven $383.8 $180.2 3,073 18.6% 16.4% 21.3%

Gladstone $415.5 $208.0 3,214 9.3% 9.9% 13.3%

Glass House $262.2 $121.0 2,192 14.7% 13.7% 15.0%

Greenslopes $348.8 $149.8 2,421 14.9% 11.4% 14.7%

Gregory $210.9 $90.9 1,590 1.9% 3.5% 6.8%

Gympie $255.9 $109.1 1,879 12.0% 9.4% 11.7%

Hervey Bay $272.4 $110.9 1,824 12.7% 9.4% 11.6%

Hill $222.5 $94.2 1,653 9.2% 7.9% 9.0%

Hinchinbrook $208.8 $93.3 1,656 10.5% 10.1% 12.2%

Inala $354.1 $169.9 3,003 9.6% 8.0% 11.4%

Ipswich $318.9 $121.7 1,921 11.7% 7.9% 10.3%

Ipswich West $200.9 $92.5 1,577 10.6% 9.1% 12.0%

Jordan $367.4 $164.0 2,737 13.3% 11.9% 15.8%

Kawana $577.8 $269.7 4,433 22.2% 19.9% 25.1%


12



Product ($M)

Incomes ($M)

Emp. (FTEs)

Gross Product

(%)

Incomes (%)

Emp. (%)

Keppel $229.4 $106.1 1,908 11.5% 10.5% 14.2%

Kurwongbah $249.3 $120.1 2,181 16.1% 14.8% 20.7%

Lockyer $138.7 $64.8 1,190 8.4% 7.8% 8.7%

Logan $271.7 $132.1 2,459 20.7% 20.7% 26.5%

Lytton $400.0 $185.7 3,294 8.8% 9.1% 12.9%

Macalister $363.3 $164.5 2,895 16.3% 13.5% 18.2%

McConnel $5,466.8 $2,150.1 25,985 15.5% 11.0% 12.6%

Mackay $402.9 $165.8 2,532 10.3% 8.5% 10.9%

Maiwar $566.8 $237.3 3,358 11.6% 7.9% 10.1%

Mansfield $426.9 $179.4 3,009 13.7% 9.9% 13.1%

Maroochydore $555.7 $238.5 3,792 17.6% 14.2% 17.3%

Maryborough $196.5 $87.7 1,560 9.6% 8.0% 11.3%

Mermaid Beach $506.9 $200.2 3,168 16.4% 12.4% 15.1%

Miller $356.5 $163.1 2,722 12.3% 10.3% 14.1%

Mirani $409.4 $193.1 3,285 4.6% 6.2% 9.9%

Moggill $192.2 $89.1 1,459 12.8% 12.4% 16.0%

Morayfield $219.1 $89.4 1,537 14.1% 11.2% 13.6%

Mount Ommaney $405.3 $192.0 3,369 13.9% 12.1% 16.2%

Mudgeeraba $431.4 $192.7 3,241 16.6% 13.9% 17.8%

Mulgrave (QLD) $174.5 $78.2 1,418 12.1% 10.3% 13.8%

Mundingburra $232.1 $94.5 1,437 7.0% 4.7% 6.4%

Murrumba $339.1 $146.8 2,554 16.4% 13.7% 17.4%

Nanango $187.2 $85.3 1,512 6.0% 6.3% 7.9%

Nicklin $287.7 $132.9 2,329 12.3% 9.4% 12.4%

Ninderry $552.7 $260.2 4,584 18.2% 16.3% 21.5%

Noosa $509.3 $223.9 3,821 18.3% 15.5% 18.9%

Nudgee $493.1 $234.2 4,150 9.8% 9.2% 13.6%

Oodgeroo $307.9 $132.6 2,248 14.6% 11.6% 15.0%

Pine Rivers $447.2 $211.4 3,744 16.0% 14.1% 18.4%

Pumicestone $293.7 $130.3 2,284 12.6% 10.4% 14.2%

Redcliffe $317.0 $140.4 2,427 15.7% 12.6% 16.5%

Redlands $229.0 $106.9 1,883 17.1% 16.4% 20.0%

Rockhampton $317.2 $141.9 2,433 9.2% 7.6% 10.8%

Sandgate $171.8 $74.9 1,274 12.5% 10.3% 13.4%

Scenic Rim $324.1 $146.8 2,605 10.6% 9.0% 12.1%

South Brisbane $1,345.3 $620.3 9,073 16.1% 12.2% 14.6%

Southern Downs $265.1 $113.7 1,963 8.6% 8.2% 9.2%

Southport $750.3 $326.5 5,301 13.5% 9.9% 13.2%

Springwood $433.0 $180.0 3,003 18.3% 13.9% 18.3%

Stafford $499.5 $209.9 3,440 14.8% 10.5% 13.1%

Stretton $281.9 $113.6 1,831 13.4% 10.7% 13.8%

Surfers Paradise $690.3 $258.9 3,847 17.3% 12.8% 13.5%

Theodore $279.4 $121.0 2,085 16.8% 13.9% 16.6%

Thuringowa $158.6 $65.6 1,073 13.0% 9.9% 11.7%

Toohey $593.7 $267.3 4,184 11.8% 8.9% 12.2%

Toowoomba North $441.0 $181.5 2,932 13.4% 9.6% 12.6%

Toowoomba South $452.3 $175.6 2,549 14.4% 10.1% 12.1%


13



Product ($M)

Incomes ($M)

Emp. (FTEs)

Gross Product

(%)

Incomes (%)

Emp. (%)

Townsville $742.8 $342.0 5,443 11.2% 9.3% 12.7%

Traeger $198.1 $91.5 1,633 4.0% 4.1% 7.6%

Warrego $222.3 $97.9 1,740 5.3% 6.5% 8.7%

Waterford $622.5 $298.6 5,384 16.8% 13.5% 18.4%

Whitsunday $293.2 $129.8 2,271 11.8% 10.8% 13.7%

Woodridge $335.1 $148.7 2,547 11.3% 8.9% 12.5%

Migratory - Offshore - Shipping $0.2 $0.1 1 0.3% 0.5% 1.1%

Queensland $41,592.0 $18,317.9 297,668 11.8% 10.4% 13.9% Notes: Totals may not sum due to rounding. Sources: AEC, AEC (unpublisheda, unpublishedb), ABS (2020a, 2020b, 2020c, 2019a, 2019b, 2019c, 2019d, 2017 and 2012), APRA (2020a, 2020b, 2019a, 2019b, 2019c and 2013), ATO (2019b), RBA (2020, 2019 and 2018).


14

4. TAXATION CONTRIBUTION

This chapter outlines the direct contribution of property related activities to Queensland government taxes as well

as local government rates and charges. The approach utilised in allocating Queensland taxes to property related

activities is outlined in Appendix D.

4.1 CONTRIBUTION TO STATE AND LOCAL GOVERNMENT REVENUES

The property industry contributed approximately $13.0 billion in combined Queensland Government tax revenues

and Queensland local government rates, fees and charges revenue in 2018-19. This equates to 48.5% of total

State taxes and local government rates, fees and charges revenues in 2018-19.

Property related activities generated $5.7 billion in Queensland Government taxation revenue in 2018-19 or 29.1%

of total Queensland Government taxation revenues. Transfer/ stamp duties made up the majority of property-based

taxation revenue (56.3% or $3.2 billion), followed by land tax (23.5% or $1.3 billion). Property related payroll tax is

estimated to have contributed $433.1 million (7.6%), with other property related taxes accounting for $717.0 million

(12.6%).

A total of $7.3 billion in rates, fees and charges revenue is estimated to have been raised by Queensland local

government authorities in 2018-19.

Table 4.1. Queensland and Local Government Property Related Revenues, 2018-19

Level of Government/ Tax Type Value

Queensland Government



Land Tax ($M) $1,334.0



Property Contribution to Total State Taxes (%) 29.1%

Queensland Local Government

Rates, Fees and Charges Revenue ($M) $7,324.5

Combined State and Local Government

Total Property Related Taxes ($M) (a) $13,003.6

Property Contribution to Total State and Local Government Taxes (%) 48.5% Note: (a) Includes local government rates, fees and charges. Sources: AEC, ABS (2020e), DLGRMA (2020), Queensland Government (2019).

4.2 COMPARISON OF STATE TAX CONTRIBUTION WITH OTHER INDUSTRIES

Property related activities are estimated to have been the largest single industry contributing to Queensland taxes

and royalty revenues in 2018-19. The property industry provided the second highest tax contribution per dollar of

GSP ($0.14), ranked only behind arts and recreation services ($0.49) which primarily involves taxes on gambling

and gaming. However, total taxation revenues from the arts and recreation industry were significantly smaller ($1.4

billion) than the property industry.

The contribution to State taxes by property related activities and other industries of the economy has been

estimated utilising the approach outlined in Appendix D.


15

Table 4.2. Contribution to Queensland Taxes, Comparison of Property Related Activities to Other Industries

of the Economy, 2018-19

Industry Tax Estimate ($M)

Contribution to GSP ($M)

Tax per $1 of GSP Contributed ($)

Property related taxes $5,679.1 $41,592.0 $0.14

Agriculture, forestry and fishing $38.2 $8,612.6 $0.00

Mining $5,441.4 $47,892.5 $0.11

Manufacturing $316.3 $22,360.2 $0.01

Electricity, gas, water and waste services $81.0 $11,649.3 $0.01

Construction $77.8 $6,469.3 $0.01

Wholesale trade $187.7 $12,741.8 $0.01

Retail trade $235.7 $15,321.2 $0.02

Accommodation and food services $159.0 $10,212.6 $0.02

Transport, postal and warehousing $224.7 $19,521.3 $0.01

Information media and telecommunications $45.1 $4,803.6 $0.01

Financial and insurance services $1,132.8 $17,609.7 $0.06

Rental, hiring and real estate services $22.1 $1,493.2 $0.01

Professional, scientific and technical services $278.9 $15,159.0 $0.02

Administrative and support services $251.0 $12,641.9 $0.02

Public administration and safety $519.8 $19,195.4 $0.03

Education and training $369.0 $17,777.3 $0.02

Health care and social assistance $547.0 $27,275.0 $0.02

Arts and recreation services $1,372.1 $2,800.8 $0.49

Other services $121.5 $7,345.8 $0.02

Ownership of dwellings $0.0 $28,614.1 $0.00

Not allocated (a) $2,406.0 - -

Total Queensland $19,506.0 $351,088.3 $0.06 Note: (a) Taxes that have not been allocated to an industry include stamp duties on motor vehicle and other vehicle registrations. While a part of these taxes are payable by industry, the majority of these taxes are paid by households. Due to data limitations it is not possible to allocate the portion of these taxes that are paid by industry. Sources: AEC, ABS (2020e), Queensland Government (2019).


16

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18

APPENDIX A: DEFINITION OF THE PROPERTY INDUSTRY

The information contained in this report is obtained from published data produced by the Australian Bureau of

Statistics (ABS) as well as other data sources as relevant. The ABS uses the Australian and New Zealand Standard

Industrial Classification (ANZSIC) in the collection and publication of statistics. The 2006 ANZSIC (ABS, 2008) has

been used in this report.

The property industry as defined in this report consists of the following industries.

CONSTRUCTION

Class 3011 – House Construction

This class consists of units mainly engaged in the construction of houses (except semi-detached houses) or in

carrying out alterations, additions or renovations to houses, or in organising or managing these activities.

Not included are units mainly engaging in:

• Off-site production of prefabricated buildings or building components are included in the appropriate classes

of Group 222 Structural Metal Product Manufacturing

• Providing special trade repair services such as electrical or plumbing repairs are included in the appropriate

classes of Group 323 Building Installation Services

• Providing architectural or building consultancy services are included in the appropriate classes of Group 692

Architectural, Engineering and Technical Services.

Class 3019 – Other Residential Building Construction

This class consists of units mainly engaged in the construction of residential buildings (except freestanding houses)

or in carrying out alterations, additions or renovations to such buildings or in organising or managing these activities.


• Off-site production of prefabricated buildings or building components are included in the appropriate classes

of Group 222 Structural Metal Product Manufacturing

• The construction of hotels, hostels, hospitals and other public buildings are included in Class 3020 Non-

Residential Building Construction





Class 3020 – Non-Residential Building Construction

This class consists of units mainly engaged in the construction of non-residential buildings such as hotels, motels,

hostels, hospitals, prisons or other buildings, in carrying out alterations, additions or renovation to such buildings,

or in organising or managing these activities.


• Off-site production of prefabricated metal buildings or metal building components are included in the

appropriate classes of Group 222 Structural Metal Product Manufacturing




19



Class 3211 – Land Development and Subdivision

This class consists of units primarily engaged in subdividing land into lots and servicing land (such as excavation

work for the installation of roads and utility lines), for subsequent sale.


• Constructing buildings on lots they subdivide or develop are included in the appropriate classes of Subdivision

30 Building Construction

• Construction of roads on a subcontract basis for land subdividers are included in Class 3101 Road and Bridge

Construction

• Legal subdivision of land without land preparation are included elsewhere in the classification system based

on the primary activity of the unit.

Class 3212 – Site Preparation Services

This class consists of units mainly engaged in earthmoving work such as levelling of construction sites, excavation

of foundations, trench digging or removal of overburden.


• Quarrying sand or gravel are included in Class 0911 Gravel and Sand Quarrying

• Quarrying earth soil or filling are included in Class 0919 Other Construction Material Mining

• Selling sand, gravel or other quarried construction materials are included in Class 3339 Other Hardware Goods

Wholesaling.

Class 3221 – Concreting Services

This class consists of units mainly engaged in concreting work, concrete pouring or other concrete work on

construction projects.


• Terrazzo laying are included in Class 3243 Tiling and Carpeting Services

• Brick paving are included in Class 3291 Landscape Construction Services.

Class 3222 – Bricklaying Services

This class consists of units mainly engaged in bricklaying or concrete block laying.


• Units mainly engaged in brick paving are included in Class 3291 Landscape Construction Services

Class 3223 – Roofing Services

This class consists of units mainly engaged in roof tiling, metal roof fixing and the application of roof coatings.


• The installation of insulation materials are included in Class 3239 Other Building Installation Services

• The installation of roof guttering are included in Class 3231 Plumbing Services

• The installation of wooden roof trusses are included in Class 3242 Carpentry Services.


20

Class 3224 – Structural Steel Erection Services

This class consists of units mainly engaged in the erection (including on-site fabrication) of metal silos, storage

tanks or structural steel components for buildings or other structures such as bridges, overhead cranes or electricity

transmission towers.


• The construction of buildings (which incorporate structural steel components) are included in the appropriate

classes of Subdivision 30 Building Construction

• The construction of complete structures such as bridges, towers or oil refinery plants (which incorporate

structural steel components) are included in the appropriate classes of Subdivision 31 Heavy and Civil

Engineering Construction.

Class 3231 – Plumbing Services

This class consists of units mainly engaged in plumbing or drainage (except sewerage or stormwater drainage

systems construction). Also included are units mainly engaged in septic tank and other plumbing installation and

repair.


• The construction of sewerage or stormwater drainage systems are included in Class 3109 Other Heavy and

Civil Engineering Construction

• Installation of fire sprinkler systems are included in Class 3234 Fire and Security Alarm Installation Services

• Repairing gas appliances are included in Class 9421 Domestic Appliance Repair and Maintenance

• Pumping or cleaning septic tanks are included in Class 2921 Waste Treatment and Disposal Services.

Class 3232 – Electrical Services

This class consists of units mainly engaged in the installation of electrical wiring or fittings in buildings or other

construction projects. Electrical work arising from the installation of appliances is included in this class.


• Repairing electricity transmission or distribution lines are included in Class 3109 Other Heavy and Civil

Engineering Construction

• Installing fire and/or security systems are included in Class 3234 Fire and Security Alarm Installation Services

• Repairing electrical appliances are included in Class 9421 Domestic Appliance Repair and Maintenance.

Class 3233 – Air Conditioning and Heating Services

This class consists of units mainly engaged in the installation of heating equipment, refrigeration equipment, air

conditioning equipment, or in the installation of air conditioning duct work.


• Manufacturing air conditioning duct work are included in Class 2240 Sheet Metal Product Manufacturing

(except Metal Structural and Container Products)

• The on-site assembly of industrial furnaces from prefabricated components are included in Class 3109 Other

Heavy and Civil Engineering Construction

• Installing motor vehicle air conditioning equipment are included in Class 9411 Automotive Electrical Services.


21

Class 3234 – Fire and Security Alarm Installation Services

This class consists of units mainly engaged in the installation of fire protection, detection and control systems, and

in installing security systems.


• Units mainly engaged in the installation and monitoring of security systems are included in Class 7712

Investigation and Security Services.

Class 3239 – Other Building Installation Services

This class consists of units mainly engaged in building installation services not elsewhere classified.

Class 3241 – Plastering and Ceiling Services

This class consists of units mainly engaged in plastering, plaster fixing or finishing.

Class 3242 – Carpentry Services

This class consists of units mainly engaged in carpentry work or the fixing of wooden formwork on construction

projects.


• Units mainly engaged in manufacturing prefabricated, wooden built-in cabinets, cupboards or shop fronts and

their installation (except on-site fabrication) are included in Class 1492 Wooden Structural Fitting and

Component Manufacturing.

Class 3243 – Tiling and Carpeting Services

This class consists of units mainly engaged in laying carpet, or setting wall or floor tiles


• Installing roofing tiles are included in Class 3223 Roofing Services

• Installing wooden flooring are included in Class 3242 Carpentry Services

Class 3244 – Painting and Decorating Services

This class consists of units mainly engaged in painting, decorating or wallpapering houses or other structures.


• Units mainly engaged in roof painting, spraying or coating are included in Class 3223 Roofing Services.

Class 3245 – Glazing Services

This class consists of units mainly engaged in glazing, including glass installation and repair work.


• Units mainly engaged in the fabrication of aluminium and timber framed glass products are included in the

appropriate classes of Division C Manufacturing.

Class 3291 – Landscape Construction Services

This class consists of units mainly engaged in constructing landscapes, including landforming and the provision of

retaining walls and paths, decks, fences, ponds and similar structures. Units also engaged in garden planting or

installation of sprinkler/drainage systems in conjunction with constructing landscapes are included.


• Landscape consultancy and design services are included in Class 6921 Architectural Services

• Garden maintenance activities and maintenance of lawns are included in Class 7313 Gardening Services.


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Class 3292 – Hire of Construction Machinery with Operator

This class consists of units mainly engaged in hiring construction machinery, plant or equipment with operator(s).


• Units mainly engaged in hiring earthmoving plant and equipment with operator are included in Class 3212 Site

Preparation Services.

Class 3299 – Other Construction Services – not elsewhere classified

This class consists of units mainly engaged in construction services not elsewhere classified.

RENTAL, HIRING AND REAL ESTATE SERVICES

Class 6712 – Non-Residential Property Operators

This class consists of units mainly engaged in renting or leasing non-residential properties.


• Units mainly engaged in land development and subdivision are included in Class 3211 Land Development and

Subdivision.

Class 6720 – Real Estate Services

This class consists of units mainly engaged in valuing, purchasing, selling (by auction or private treaty), managing

or renting real estate for others.


• Providing title transfer or conveyancing service are included in Class 6931 Legal Services

• Providing engineering or structural property and house inspections are included in Class 6923 Engineering

Design and Engineering Consulting Services.

FINANCIAL AND INSURANCE SERVICES

Class 6221 – Banking (Partial Only)

This class consists of units mainly engaged in operating banks (except merchant banks). Banks incur liabilities by

accepting demand and other deposits and make commercial, industrial and consumer loans.


• Performing central banking functions are included in Class 6210 Central Banking

• Operating building societies are included in Class 6222 Building Society Operation

• Operating credit unions are included in Class 6223 Credit Union Operation

• Operating merchant banks are included in Class 6229 Other Depository Financial Intermediation.

Not all of this class has been allocated to the property industry. The allocation of this class to the property

industry is based on the share of loans and advances to the residential sector in the banks’ total assets. Although

part of loans to the commercial sector is property-related, data limitations regarding loans to the commercial sector

precluded its inclusion.


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Class 6222 – Building Society Operation

This class consists of units mainly engaged in operating building societies which accept deposits and provide

specialised financing for home building or purchasing purposes.


• Operating development, savings and trading banks are included in Class 6221 Banking

• Operating credit unions are included in Class 6223 Credit Union Operation.

Class 6223 – Credit Union Operation (Partial Only)

This class consists of units mainly engaged in operating credit unions which accept members’ share deposits and

provide loans to their members for various purposes.


• Operating development, savings and trading banks are included in Class 6221 Banking

• Operating building societies are included in Class 6222 Building Society Operation.


industry is based on the share of loans and advances to the residential sector in credit union’s total assets. Although

part of loans to the commercial sector is property-related, data limitations regarding loans to the commercial sector

precluded its inclusion.

Class 6322 – General Insurance (Partial Only)

This class consists of units mainly engaged in providing general insurance cover (except life and health insurance).


• Providing insurance broking services are included in Class 6420 Auxiliary Insurance Services

• Providing insurance cover for hospital, medical, dental, pharmaceutical or funeral expenses or costs are

included in Class 6321 Health Insurance

• Providing life insurance and life reinsurance cover are included in Class 6310 Life Insurance.


industry is based on the value of gross written premiums on general insurance to houseowners/ householders as

a share of total gross written premiums on general insurance.

Class 6330 – Superannuation Funds (Partial Only)

This class consists of units of separately constituted funds mainly engaged in providing retirement benefits.


• Investing money on their own account in predominantly financial assets (e.g. shares, bonds, bills etc, including

mortgages) are included in Class 6240 Financial Asset Investing

• Managing or in carrying out the operations of separately constituted superannuation funds on a commission

or fee basis are included in Class 6419 Other Auxiliary Finance and Investment Services.


industry is based on the share of property assets in superannuation total investment. Although part of equity assets

is property-related, data limitations regarding the proportion of equity related to the property sector precluded its

inclusion.


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PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES

Class 6921 – Architectural Services

This class consists of units mainly engaged in providing architectural services such as planning and designing

buildings and structures; or planning and designing the development of land. Units apply knowledge of design,

construction procedures, zoning regulations, location and land use, building codes and building materials.


• Units mainly engaged in managing or organising construction projects as the prime contractor are included in

the appropriate classes of Division E Construction.

Class 6922 – Surveying and Mapping Services

This class consists of units mainly engaged in providing surveying and mapping services (including exploration

surveying services on contract). Units in this class use a variety of surveying techniques depending on the purpose

of the survey, including magnetic surveys, gravity surveys, seismic surveys or electrical and electromagnetic

surveys. These services may also include surveying and mapping of areas above or below the surface of the earth.


• Units mainly engaged in exploring for petroleum or minerals are included in the appropriate classes of Group

101 Exploration.

Class 6923 – Engineering Design and Engineering Consulting Services

This class consists of units mainly engaged in providing engineering consulting services. These units are primarily

involved in applying physical laws and principles of engineering in the design, development and utilisation of

machines, materials, instruments, structures, processes and systems. Units provide advice, prepare feasibility

studies, prepare preliminary and final plans and designs, provide technical services during the construction or

installation phase, inspect and evaluate engineering projects, and related services.


• The physical or chemical transformation of materials into new products are included in the appropriate classes

of Division C Manufacturing

• Managing or organising construction projects as the prime contractor are included in the appropriate classes

of Division E Construction

• Undertaking scientific research are included in Class 6910 Scientific Research Services

• Providing scientific or technical laboratory or testing services are included in Class 6925 Scientific Testing and

Analysis Services.


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APPENDIX B: SIGNIFICANCE ASSESSMENT METHODOLOGY

The economic significance estimates in this report are produced using Input-Output transaction tables and models

developed by AEC for the purposes of this assessment, combined with data from a range of sources, including

State and National Accounts data and various industry specific data from the ABS. The Input-Output models were

used to produce estimates of the direct and flow-on contribution of the property industry to the Australian, State/

Territory and State Electorate economies in terms of output, gross product, employment and income.

OVERVIEW OF INPUT-OUTPUT MODELLING

Input-Output analysis demonstrates inter-industry relationships in an economy, depicting how the output of one

industry is purchased by other industries, households, the government and external parties (i.e. exports), as well

as expenditure on other factors of production such as labour, capital and imports. Input-Output analysis shows the

direct and indirect (flow-on) effects of one sector on other sectors and the general economy. As such, Input-Output

modelling can be used to demonstrate the economic contribution of a sector on the overall economy and how much

the economy relies on this sector or to examine a change in final demand of any one sector and the resultant

change in activity of its supporting sectors.

The economic contribution can be traced through the economic system via:

• Initial stimulus (direct) impacts, which represent the economic activity of the industry directly experiencing

the stimulus.

• Flow-on impacts, which are disaggregated to:

o Production induced effects (type I flow-on), which comprise the effects from:

▪ Direct expenditure on goods and services by the industry experiencing the stimulus (direct suppliers

to the industry), known as the first round or direct requirements effects.8

▪ The second and subsequent round effects of increased purchases by suppliers in response to

increased sales, known as the industry support effects.

o Household consumption effects (type II flow-on), which represent the consumption induced activity

from additional household expenditure on goods and services resulting from additional wages and salaries

being paid within the economic system.

These effects can be identified through the examination of four types of impacts:

• Output: Refers to the gross value of goods and services transacted, including the costs of goods and services

used in the development and provision of the final product. Output typically overstates the economic impacts

as it counts all goods and services used in one stage of production as an input to later stages of production,

hence counting their contribution more than once.

• Gross product: Refers to the value of output after deducting the cost of goods and services inputs in the

production process. Gross product (e.g., Gross Regional Product) defines a true net economic contribution

and is subsequently the preferred measure for assessing economic impacts.

• Income: Measures the level of wages and salaries paid to employees of the industry under consideration and

to other industries benefiting from the project.

8 Modelling note: In assessing construction impacts, AEC’s modelling approach treats subcontractors in the construction services sector engaged

through first round effects as part of the initial stimulus impact rather than as part of the production induced impact.


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• Employment: Refers to the part-time and full-time employment positions generated by the economic shock,

both directly and indirectly through flow-on activity, and is expressed in terms of full time equivalent (FTE)

positions.

Input-Output multipliers can be derived from open (Type I) Input-Output models or closed (Type II) models. Open

models show the direct effects of spending in a particular industry as well as the indirect or flow-on (industrial

support) effects of additional activities undertaken by industries increasing their activity in response to the direct

spending.

Closed models re-circulate the labour income earned as a result of the initial spending through other industry and

commodity groups to estimate consumption induced effects (or impacts from increased household consumption).

SIGNIFICANCE ASSESSMENT VERSUS IMPACT ASSESSMENT

The framework employed in significance assessment differs from that employed in traditional economic

impact analysis in that economic significance assessment primarily seeks the contribution of an existing industry

as opposed to the impact of a “stimulus” (or expansion) in a particular industry or in several industries (West, 1993).

The usual approach of comparing what the economy would be with and without the industries whose contributions

are to be assessed does not work because the inter-relationship between industries means whether or not the

industries to be assessed exist, there will still be demand for their outputs (e.g., a complete vehicle needs tyres so

that whether or not the entire tyre manufacturer is closed down, the car manufacturer’s demand for tyres still exists).

From a modelling stance, this problem is solved by assuming that demand for outputs of the industries to be

assessed will instead be met by imports.

MODEL DEVELOPMENT

The models used in this assessment are derived from sub-regional transaction tables developed specifically for

this project. The process of developing a sub-regional transaction table involves developing regional estimates of

gross production and purchasing patterns based on a parent table, in this case, the 2016-17 Australian transaction

table (ABS, 2019a).

Estimates of gross production (by industry) in the study areas (Australia, each State/ Territory and each State

Electorate) were developed based on the percent contribution to employment (by place of work) of the study areas

to the Australian economy for the base model year of 2016-17. This is based on AEC’s annual employment

estimates by industry by small area (AEC, unpublisheda) applied to Australian gross output identified in the 2016-17

Australian table. Annual estimates between 2006-07 and 2018-19 were developed based on estimates of annual

change across a range of data sets, including:

• GRP from AEC’s in-house estimates of GRP by small area (AEC, unpublishedb), as well as Gross State

Product and Gross Domestic Product (ABS, 2019c), was used to estimate change in both gross product and

output between years (from the base of 2016-17).

o An exception to this approach was construction-based industries, which used data regarding the change

in total value of construction work done by State for buildings (ABS, 2020b) and engineering construction

activity (ABS, 2020c).

• Annual employment by industry estimates from AEC’s in-house employment by industry by small area model

(AEC, unpublisheda) was used to estimate changes in employment between years for each industry.

Additional details regarding AEC’s in-house GRP and employment estimates models are provided in Appendix E.

Industry purchasing patterns within study areas were estimated using a process of cross industry location quotients

and demand-supply pool production functions as described in West (1993). These were then adjusted based on

differences in industry value added activity per employee between the State/ region and Australia, as estimated

using AEC’s GRP and employment estimates models.

Input-Output tables utilise an aggregated system of industry classifications based on the ANZSIC system. In total,

the 2016-17 Input-Output tables produced by the ABS (2019a) define 114 distinct industries, some of which are

aggregates of the industry classes outlined in Appendix A. Some of the property related industries in the Input-


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Output tables consist of both property and non-property related sub-sectors, and it is necessary to separate the

property component from the non-property component in the related Input-Output industry.

The industries defined in the Input-Output tables that are included in the property industry are as follows:

• Residential Building Construction (all).

• Non-Residential Building Construction (all).

• Construction Services (all).

• Finance (partially).

• Insurance and Superannuation Funds (partially).

• Non-Residential Property Operators and Real Estate Services (all).

• Professional, Scientific and Technical Services (partially).

The separation of property from non-property related operation for those Input-Output industries listed as “partially”

included in the property industry is based on either:

1 The share of total income (revenue) of the sub-sectors listed in Appendix A in the total income (revenue) of

all sub-sectors grouped under the same Input-Output industry classification code9; or

2 The share of asset (loans and advances to as well as investment in) in the property industry in the total assets

of all sub-sectors grouped under the same Input-Output industry classification code10.

These shares are then utilised to expand the original Input-Output table to separate these industries into their

property related and non-property related components to facilitate the economic significance assessment of the

property industry in isolation. Once the transaction table is complete, the significance model is developed through

the development of coefficients as per West (1993).

INPUT-OUTPUT ASSUMPTIONS

The key assumptions and limitations of Input-Output analysis include:

• Lack of supply-side constraints: The most significant limitation of economic impact analysis using Input-

Output multipliers is the implicit assumption that the economy has no supply-side constraints so the supply of

each good is perfectly elastic. That is, it is assumed that extra output can be produced in one area without

taking resources away from other activities, thus overstating economic impacts. The actual impact is likely to

be dependent on the extent to which the economy is operating at or near capacity.

• Fixed prices: Constraints on the availability of inputs, such as skilled labour, require prices to act as a rationing

device. In assessments using Input-Output multipliers, where factors of production are assumed to be limitless,

this rationing response is assumed not to occur. The system is in equilibrium at given prices, and prices are

assumed to be unaffected by policy and any crowding out effects are not captured. This is not the case in an

economic system subject to external influences.

• Fixed ratios for intermediate inputs and production (linear production function): Economic impact

analysis using Input-Output multipliers implicitly assumes that there is a fixed input structure in each industry

and fixed ratios for production. That is, the input function is generally assumed linear and homogenous of

degree one (which implies constant returns to scale and no substitution between inputs). As such, impact

analysis using Input-Output multipliers can be seen to describe average effects, not marginal effects. For

example, increased demand for a product is assumed to imply an equal increase in production for that product.

In reality, however, it may be more efficient to increase imports or divert some exports to local consumption

9 The “Professional, Scientific and Technical Services” Input-Output sector uses this approach based on data from the ABS (2020a) and AEC

(unpublisheda).

10 The “Finance” and “Insurance and Superannuation Funds” sectors use this approach based on data from the RBA (2020, 2019 and 2018), APRA

(2020a, 2020b, 2019a, 2019b, 2019c and 2013) and ATO (2019b),


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rather than increasing local production by the full amount. Further, it is assumed each commodity (or group of

commodities) is supplied by a single industry or sector of production. This implies there is only one method

used to produce each commodity and that each sector has only one primary output.

• No allowance for economies of scope: The total effect of carrying on several types of production is the sum

of the separate effects. This rules out external economies and diseconomies and is known simply as the

“additivity assumption”. This generally does not reflect real world operations.

• No allowance for purchasers’ marginal responses to change: Economic impact analysis using multipliers

assumes that households consume goods and services in exact proportions to their initial budget shares. For

example, the household budget share of some goods might increase as household income increases. This

equally applies to industrial consumption of intermediate inputs and factors of production.

• Absence of budget constraints: Assessments of economic impacts using multipliers that consider

consumption induced effects (type two multipliers) implicitly assume that household and government

consumption is not subject to budget constraints.

To assist in accounting for these limitations, AEC’s approach has applied results from our internal GRP and

employment models to the Input-Output models to more appropriately reflect the differences in production functions

between the region examined and the national economy.

In addition to the general limitations of Input-Output analysis, there are two other factors that need to be considered

when assessing the outputs of sub-regional transaction table developed using this approach, namely:

• It is assumed the sub-region has similar technology and demand/ consumption patterns as the parent

(Australia) table (e.g. the ratio of employee compensation to employees for each industry is held constant).

• Intra-regional cross-industry purchasing patterns for a given industry vary from the national tables depending

on the prominence of the industry in the regional economy compared to its input industries. Typically, industries

that are more prominent in the region (compared to the national economy) will be assessed as purchasing a

higher proportion of imports from input industries than at the national level, and vice versa.

SIGNIFICANCE ASSESSMENT APPROACH

Contribution to the State and its Electorates

The significance assessment is initially undertaken for the 2016-17 financial year to be consistent with the Input-

Output transaction tables utilised. These estimates are then “rebased” to 2018-19 (and other years) values based

on the approach outlined in the ‘Model Development’ section of this Appendix above.

Estimates of the flow-on effects of the property industry in each year are obtained assuming constant proportion

between individual industries’ flow-on effects and the direct (total) effects (output, gross product, income and

employment) in 2016-17. Since the relationship between industries is likely to have changed over this period, the

estimates produced are indicative only. In the absence of a more recent Input-Output transaction table, which forms

the basis to quantify the inter-relationships between industries, the estimates produced represent the flow-on

effects of the property industry assuming no significant structural changes in the relationship between industries.

Regional allocation of the direct and flow-on effects is performed in three steps:

1 Individual Input-Output transaction tables and significance assessment models were developed for each State/

Territory and State Electorate (as described in the “Model Development” section of this Appendix). This

approach produces regional estimates of direct and flow-on property industry contributions assuming each

region operates in isolation, and therefore does not account for any inter-regional flow-on relationships.

2 To account for inter-regional flows of demand for goods and services between States/ Territories, the difference

between the total Australian flow-on effects and the sum of flow-on effects for each State/ Territory by industry

(the “inter-regional” flow-on effects) has been redistributed to each State/ Territory based on the proportion

that each State/ Territory contributes to total Australian activity in each industry (i.e., if New South Wales

accounts for 50% of total Australian output in retail trade, then 50% of the inter-regional retail trade flow-on

effects have been allocated to New South Wales).


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3 To allocate to each State Electorate the same approach is used as for States/ Territories in redistributing inter-

regional flows, but uses the proportional contribution of each State Electorate to the State/ Territory in which it

is located to allocate inter-regional flows within the State/ Territory rather than Australia.

Contribution to State by Property Sub-Sector

The direct contribution of the property industry to the Australian economy has was disaggregated across the

following property sub-sectors:

• Residential.

• Non-Residential, split by:

o Retail.

o Commercial.

o Industrial.

o Health.

o Education.

o Entertainment/ recreation.

o Short term accommodation.

o Religion.

o Other.

The direct contribution of each property sub-sector has been estimated based on allocation of each of the Input-

Output industry contributions to the sub-sectors. Allocations have been based on:

• Direct “Residential Building Construction” effects are entirely allocated to the Residential property sub-sector.

• Direct “Non-Residential Building Construction” effects are allocated across all non-residential property sub-

sectors based on proportional splits of value of non-residential building works commenced for each non-

residential property sub-sector in 2018-19 (ABS, 2020d).

• All other property related Input-Output industry effects are allocated based on the proportional split of value of

total building works commenced for each sub-sector in in 2018-19 (ABS, 2020d).


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APPENDIX C: DIRECT CONTRIBUTION TO QUEENSLAND BY INDUSTRY

The following table presents a comparison of the direct economic contribution of the property industry to the

Queensland economy compared to other industries.

Table C.1. Comparison of Direct Contribution of the Property Industry and Other Industries to the

Queensland Economy, 2018-19

Industry Gross Product ($B)

Incomes ($B)

Employment (‘000 FTEs)

Property industry $41.6 $18.3 297.7

Agriculture, forestry and fishing $8.6 $1.6 79.3

Mining $47.9 $9.5 57.8

Manufacturing $22.4 $13.4 147.5

Electricity, gas, water and waste services $11.6 $3.4 28.6

Construction * $6.5 $3.3 10.9

Wholesale trade $12.7 $7.9 77.7

Retail trade $15.3 $10.0 188.2

Accommodation and food services $10.2 $6.7 146.8

Transport, postal and warehousing $19.5 $9.5 116.6

Information media and telecommunications $4.8 $1.9 28.8

Financial and insurance services * $17.6 $5.5 33.2

Rental, hiring and real estate services * $1.5 $0.9 8.0

Professional, scientific and technical services * $15.2 $11.8 124.8

Administrative and support services $12.6 $10.6 78.6

Public administration and safety $19.2 $15.4 161.4

Education and training $17.8 $15.6 168.1

Health care and social assistance $27.3 $23.1 275.3

Arts and recreation services $2.8 $1.7 35.0

Other services $7.3 $5.1 83.1

Ownership of dwellings $28.6 $0.0 0.0

Total $351.1 $175.4 2,147.4 Notes: Totals may not sum due to rounding; * Only non-property related activity is included for this industry classification. All property related activity is included in the property industry. Sources: AEC, AEC (unpublisheda), ABS (2020a, 2020b, 2020c, 2020d, 2019a, 2019b, 2019c, 2019d, 2017 and 2012), APRA (2020a, 2020b, 2019a, 2019b, 2019c and 2013), ATO (2019b), RBA (2020, 2019 and 2018).


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APPENDIX D: ALLOCATION OF TAXES

QUEENSLAND GOVERNMENT TAXES

Queensland government taxes were taken from the Australian Bureau of Statistics (ABS, 2020e).

Queensland Government taxation and royalty revenues have been allocated to property related activities based

on the allocation approach outlined in Table D.1.

Table D.1. Allocation of 2018-19 Queensland Government Taxes to Property Related Activities

Tax Item $M Method of Allocation

Payroll Tax $4,146 By industry based on contribution to incomes

Property Taxes

Transfer $3,195 Property related activity

Land Tax $1,334 Property related activity

Other Property Related Taxes $717 Property related activity

Total Property Taxes $5,246

Gambling Taxes and Levies $1,333 Not property related

Taxes on Financial Institutions (a) $1,003 Not property related

Guarantee Fees $156 Not property related

Motor Vehicle Taxes

Stamp duty on vehicle registration $555 Not property related

Other Motor Vehicle Taxes $1,850 Not property related

Total Motor Vehicle Taxes $2,405

Other Taxes $1 Not property related

Royalties and Land Rents $5,216 Not property related

Total Taxation and Royalty Revenue $19,506 Note: (a) Includes insurance. Sources: AEC, ABS (2020e).

A summary of Queensland Government taxes based on the above methodology is outlined in Table D.2.

Table D.2. Queensland Government Property Related Taxes, 2018-19

Tax Value



Land Tax ($M) $1,334.0



Property Contribution to Total State Taxes (%) 29.1% Sources: AEC, ABS (2020e), Queensland Government (2019).

LOCAL GOVERNMENT RATES, FEES AND CHARGES

Local government rates, fees and charges data was collected from the Department of Local Government, Racing

and Multicultural Affairs (2020) for 2018-19.


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APPENDIX E: AEC’S GRP AND EMPLOYMENT MODELS

Every year AEC produces annual estimates of Gross Regional Product and employment by industry for small areas

across Australia (Statistical Area 2 (SA2) and Local Government Area (LGA)). This appendix provides an overview

of the approach used in modelling GRP and employment by industry.

GROSS REGIONAL PRODUCT

Background

Gross Domestic Product (GDP) and Gross State Product (GSP) figures are produced on a regular basis and

published by the Australian Bureau of Statistics and the relevant State and Territory Government departments.

However, regular official estimates of production for sub-State regions do not exist (Gross Regional Product,

GRP11).

The Australian Bureau of Statistics (ABS) uses three approaches to calculate GDP/ GSP:

• Value added approach (or Production approach): represents the difference between taking the market

value of the goods and services produced by an industry (gross output) and deducting the cost of goods and

services used up by the industry in the productive process (intermediate consumption);

• Income approach: calculates the cost of producing GRP by summing the incomes accruing from domestic

production. These income components can be viewed as the market costs of production consisting of the

compensation of employees (wages, salaries and supplements), provision for the consumption of fixed capital

(depreciation), net operating surplus, and net indirect taxes; and

• Expenditure approach: sums all final expenditures (ignoring expenditure on intermediate consumption) on

goods and services, add on the contribution of exports and deduct the value of imports. Final expenditures are

known as final demand and include final consumption expenditure by households, gross fixed capital

expenditure by producers (i.e. durable assets), investment stocks and exports to the rest of the world.

Due to data limitations it is not possible to calculate GRP using the same approach as national or State values.

AEC estimates of GRP at factor cost use an indirect method to disaggregate official State GSP totals. As such, all

GRP estimates will be subject to a combination of any errors in the State GSP estimates as well as those introduced

by the methodology and data limitations used to allocate GSP to the constituent regions.

AEC Approach

AEC’s GRP model utilises the ABS’s national Input-Output (IO) transaction tables (ABS, 2019a) to develop GRP

estimates by 114 industries for each LGA and SA2 in Australia for the latest IO release year at time of development

(for the 2018-19 GRP estimates used in this study, the 2016-17 IO transaction tables were used). Development of

LGA and SA2 estimates is based on AEC’s IO model regionalisation process, as described in the “General

Overview” of the “Model Development” section of Appendix A. The estimates are aggregated to the 19 industry

classifications listed in ANZSIC, plus ownership of dwellings, and rebased to State Accounts estimates of value

add by industry (ABS, 2019c).

Estimates of GRP for other years are developed based on industry growth in GVA at the State level, disaggregated

to an LGA/ SA2 level primarily based on AEC’s employment by industry estimates (described separately below).

Key exceptions to this are:

11 GRP at factor cost is that part of the cost of producing the gross regional product which consists of gross payments to factors of production

(labour, land, capital and enterprise). It represents the value added by these factors in the process of production and is equivalent to gross regional

product less indirect taxes plus subsidies.


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• Agriculture, forestry and fishing, which is based on small area commodity production value data from the ABS

(2018).

• Ownership of dwellings, which uses data on the number of rented properties and average rental value for each

small area based on Census of Population and Housing Data (ABS, 2017).

Adjustments are also made to the mining industry to allocate a greater value per employee to where resources are

located (versus office-based employment) based on occupation groupings.

EMPLOYMENT BY INDUSTRY

Background

Data outlining employment by industry by place of work (i.e. where the jobs are located) for small areas is only

available every five years from the Census of Population and Housing. While other data sets exist providing more

regular and up-to-date estimates of employment, these typically suffer from some combination of the following:

• Are not available for small areas.

• Are based on place of usual residence rather than place of work.

• Do not provide a breakdown of employment across industry.

Economic activity in a region is typically based on where jobs are located. To assist in providing more relevant and

up-to-date statistics and analysis of economic activity at small regional levels, AEC has sought to address these

data limitations by developing in-house estimates of annual employment by industry for LGA and SA2 geographies

across Australia.

AEC Approach

AEC’s approach to modelling employment by place of work uses 2011 and 2016 Census of Population and Housing

employment by industry by place of work data as a starting point (ABS, 2012; ABS, 2017). Modelling for other years

is, in the first instance, undertaken at a Statistical Area 4 (SA4) geographic level using data from the ABS quarterly

Labour Force Survey (LFS) (ABS, 2019b), using regression techniques to smooth this data. Smoothed estimates

are converted from place of usual residence to place of work estimates using Census differences for each SA4

between place of usual residence and place of work in 2011 and 2016 (straight line change assumed). Annual

changes in the LFS are then applied to Census place of work data for the SA4s.

Small area (SA2) data from the Census as well as Department of Education, Skills and Employment (DoESE,

2019) is then used to assist in splitting SA4 estimates to constituent SA2s across years, based on Census year

shares and annual total employment change by SA2.

All estimates are rebalanced to ensure internal consistency between SA2s, SA4s, States and Australian totals.

Estimates by LGA are developed using correspondence files between SA2s and LGAs.


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