Economic Significance of the
Property Industry to the
Australian Economy
Property Council of Australia
2015
Economic Significance of the Property Industry to the Australian Economy
Final Report
Document Control
Job ID:
17907
Job Name:
Economic Significance of the Property Industry to the Australian
Economy 2013-14
Client:
Property Council of Australia
Client Contact:
Chris Mountford (PCA – QLD)
Project Manager:
Ashley Page
Email:
[email protected]
Telephone:
(07) 3831 0577
Document Name:
PCA Econ Sig of Prop Sector 2013-14 AUS Report Final (a)
Last Saved:
6/10/2015 9:50 AM
Version
Date
Reviewed
Approved
Draft v1.0
30 April, 2015
KL
AP
Draft v2.0
20 May, 2015
KL
SS
Final
22 May, 2015
KL
SS
Final (a)
6 October, 2015
KL
AP
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.
i
Economic Significance of the Property Industry to the Australian Economy
Final Report
Key Findings
The property sector has a larger footprint on the Australian economy than any other
industry.

It directly contributed $182.5 billion to Gross Domestic Product (GDP) in 2013-14
(11.5%), and is estimated to have contributed a further $279.7 billion to Australian
GDP through flow-on demand for goods and services.

It also directly employed 1.17 million full time equivalent (FTE) employees in 201314 (11.8% of Australian total), and supported some 1.54 million FTE jobs through
flow-on activity.

Approximately 28.6% of wages and salaries paid to Australian workers is generated
by the property sector.

The majority of the property sector is generated by residential activity.

It contributed approximately $72.1 billion in combined Australian and State
Government tax revenues and local government rates, fees and charges revenue in
2013-14. This equates to 16.0% of total Australian and State/ Territory taxes and
local government rates, fees and charges revenues in 2013-14.

Residential property ownership is not the only way every day Australians participate
in the property sector; 14.1 million Australians have a financial stake in the property
industry through their super funds.
ii
Economic Significance of the Property Industry to the Australian Economy
Final Report
Executive Summary
The Australian Property Industry...
The Australian 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 Australia. 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 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.
The Property Industry is the largest industry in Australia…
The property industry is the largest industry in Australia. The industry is estimated to have
contributed $182.5 billion to Australian GDP in 2013-14, accounting for 11.5% of GDP for
the year (of $1,583.6 billion).
Figure ES.1. Direct Contribution to Gross Domestic Product by Industry, 2013-14 ($ Billion)
Property industry
Ownership of dwellings
Mining
Financial and insurance services *
Manufacturing
Health care and social assistance
Public administration and safety
Professional, scientific and technical services *
Transport, postal and warehousing
Education and training
Retail trade
Wholesale trade
Administrative and support services
Information media and telecommunications
Electricity, gas, water and waste services
Agriculture, forestry and fishing
Construction *
Accommodation and food services
Other services
Arts and recreation services
Rental, hiring and real estate services *
$182.5
$147.1
$140.9
$110.9
$108.0
$107.1
$89.1
$85.1
$80.2
$78.8
$75.3
$66.6
$48.3
$46.7
$46.0
$39.8
$39.2
$38.6
$29.8
$13.6
$9.9
$0
$50
$100
Gross Product ($ Billion)
$150
$200
Note: * - Only non-property related activity is included for this industry classification. All property related activity is included in the
property industry.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
iii
Economic Significance of the Property Industry to the Australian Economy
Final Report
The Property Industry is the second largest employer in
Australia…
The property industry was the second highest contributing sector to employment in 201314. Around 1.17 million full time equivalent (FTE) employees were directly employed in the
property industry in 2013-14, accounting for 11.8% of the total FTE employees in Australia.
Figure ES.2. Direct Contribution to Employment by Industry, 2013-14 (‘000 FTEs)
Health care and social assistance
Property industry
Retail trade
Public administration and safety
Education and training
Manufacturing
Professional, scientific and technical services *
Accommodation and food services
Transport, postal and warehousing
Other services
Administrative and support services
Wholesale trade
Agriculture, forestry and fishing
Financial and insurance services *
Mining
Electricity, gas, water and waste services
Information media and telecommunications
Arts and recreation services
Construction *
Rental, hiring and real estate services *
Ownership of dwellings
1,181
1,166
899
828
805
750
605
542
508
410
372
345
314
261
249
178
163
147
99
45
0
0
200
400
600
800
Employment ('000 FTEs)
1,000 1,200 1,400
Note: * - Only non-property related activity is included for this industry classification. All property related activity is included in the
property industry.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
The Property Industry is also a strong contributor to Australia’s
economy through flow-on activity…
In addition to the direct contribution of the property industry to the Australian economy,
the property industry is estimated to have contributed a further $279.7 billion to Australian
GDP through flow-on demand for goods and services, including production induced 1 and
consumption induced2 effects. Combined, the property industry contributed $462.2 billion
to GDP in 2013-14 through direct and flow-on activity.
The property industry also indirectly contributes to employment in Australia through flowon demand for goods and services. The property industry supported jobs for some 1.54
million FTE employees in 2013-14 through flow-on activity. Over 2.7 million FTE jobs were
supported by the property industry in 2013-14 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 59.9% of total
property industry gross product and 63.0% of employment in 2013-14, with the nonresidential sub-sector contributing the remainder.
1
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.
2
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.
iv
Economic Significance of the Property Industry to the Australian Economy
Final Report
The Property Industry is a key contributor to taxation revenues...
The property industry contributed approximately $72.1 billion in combined Australian and
State Government tax revenues and local government rates, fees and charges revenue in
2013-14. This equates to 16.0% of total Australian and State/ Territory taxes and local
government rates, fees and charges revenues in 2013-14. State governments received the
largest revenue from property related activities, accounting for 38.0% of total property
related revenues to government.
Australian and State Government property related taxes of $48.9 billion represents a
contribution of approximately 11.4% of total combined Australian and State Government
tax revenues in 2013-14.
Table ES.1. Property Related Tax Revenues
State
(a),
All Levels of Government, 2013-14
Australian
Government
Taxes
($M) (b)
State
Government
Taxes
($M)
Local
Government
Rates, Fees &
Charges ($M)
Total Tax
Revenues
($M)
Contribution
to Total Tax
Revenues (a)
New South Wales
$6,541.9
$9,811.5
$7,187.2
$23,540.6
N/A
Victoria
$4,994.3
$7,309.4
$4,320.2
$16,623.9
N/A
Queensland
$3,814.6
$4,205.0
$5,727.6
$13,747.2
N/A
South Australia
$1,200.6
$1,615.4
$2,033.2
$4,849.2
N/A
Western Australia
$3,758.0
$3,624.2
$2,819.1
$10,201.4
N/A
Tasmania
$220.6
$313.5
$614.3
$1,148.4
N/A
Northern Territory
$457.9
$188.7
$167.3
$814.0
N/A
Australian Capital Territory
Australia
$499.3
$371.1
$340.0
$1,210.3
N/A
$21,487.1
$27,438.8
$23,209.0
$72,134.9
16.0%
Notes: N/A = Not applicable. (a) Includes rates, fees and charges revenues to local government. (b) The total Australian Government taxation
revenue from property may be understated as it does not include tax on residents or non-residents for some property related activities such as
through rental income.
Sources: AEC, ABS (2015d; 2014c), Australian Government (2014), ATO (2015a; 2015b), ACT Government (2014), NSW Government (2014), NT
Government (2014), Queensland Government (2014), SA Government (2014), Tasmanian Government (2014), Victorian Government (2014), WA
Government (2014). Alice Springs Town Council (2014), Barkly Regional Council (2014), Belyuen Community Government Council (2014), Central
Desert Regional Council (2014), City of Darwin Council (2014), City of Palmerston Council (2014), Coomalie Community Government Council
(2014), East Arnhem Regional Council (2014), Katherine Town Council (2014), Litchfield Council (2014), MacDonnell Regional Council (2014),
MAV (2014), NSW Government (2014b), Queensland Government (2015), Roper Gulf Regional Council (2014), Tasmanian Audit Office (2015),
Tiwi Islands Regional Council (2014), Victoria Daly Regional Council (2014), Wagait Shire Council (2014), West Arnhem Regional Council (2014).
v
Economic Significance of the Property Industry to the Australian Economy
Final Report
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
DEFINITION OF THE PROPERTY INDUSTRY ................................................................... 1
1.3
GEOGRAPHIC SCOPE .......................................................................................... 1
1.4
METHODOLOGY ................................................................................................ 1
2.
CONTRIBUTION TO NATIONAL ECONOMY ................................................... 2
2.1
CONTRIBUTION OF THE PROPERTY INDUSTRY TO AUSTRALIA ............................................. 3
2.2
CONTRIBUTION OF PROPERTY SUB-SECTORS TO AUSTRALIA ............................................. 7
2.3
STATE CONTRIBUTION OF THE PROPERTY INDUSTRY ....................................................... 7
2.4
COMPARISON WITH OTHER INDUSTRIES .................................................................... 9
2.4.1 GROSS DOMESTIC PRODUCT ....................................................................... 9
2.4.2 INCOMES ............................................................................................. 9
2.4.3 EMPLOYMENT ....................................................................................... 10
3.
CONTRIBUTION TO FEDERAL ELECTORATES ............................................. 11
4.
TAXATION CONTRIBUTION ....................................................................... 15
4.1
CONTRIBUTION TO AUSTRALIAN TAXES ................................................................... 15
4.2
CONTRIBUTION TO STATE TAXES .......................................................................... 15
4.3
LOCAL GOVERNMENT RATES, FEES AND CHARGES ....................................................... 16
4.4
SUMMARY OF TAX REVENUES ............................................................................... 16
5.
INVESTMENT ............................................................................................. 17
5.1
RESIDENTIAL PROPERTIES OWNED AND RENTED ......................................................... 17
5.2
PROPERTY INVESTED IN THROUGH SUPER FUNDS ........................................................ 17
REFERENCES ..................................................................................................... 18
APPENDIX A: DEFINITION OF THE PROPERTY INDUSTRY ................................. 21
APPENDIX B: SIGNIFICANCE ASSESSMENT METHODOLOGY ............................. 28
APPENDIX C: DIRECT CONTRIBUTION TO AUSTRALIA BY INDUSTRY ............... 32
APPENDIX D: ALLOCATION OF TAXES ............................................................... 33
APPENDIX E: PROPERTY INVESTMENT THROUGH SUPER METHODOLOGY ......... 37
vi
Economic Significance of the Property Industry to the Australian Economy
Final Report
1.
Introduction
1.1
Background
The Property Council of Australia commissioned AEC Group Pty Ltd (AEC) to estimate 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
Definition of the Property Industry
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 nonresidential building, 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 property3.
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 is on the economic significance of the property industry in Australia,
each Australian State/ Territory, and each Australian Federal Electorate.
Data for Federal Electoral divisions as required for this study is not available from the
Australian Bureau of Statistics, and to undertake analysis for the Federal Electorates
correspondence files (based on population counts) between Federal Electorates and both
Statistical Area 2 (SA2) and local government area (LGA) geographic boundaries from the
Australian Bureau of Statistics (ABS, unpublished) were utilised to convert SA2/ LGA data
to Federal Electorates. All estimates of property industry activity at the Federal Electorate
level are therefore subject to a softer confidence due to any inconsistencies introduced by
transforming data using these correspondence files.
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 Australia’s economy,
each State/ Territory, and each Federal Electorate. Measures used in this report include
Gross Domestic Product (GDP), Gross Value Added (GVA) activity, 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.
3
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.
1
Economic Significance of the Property Industry to the Australian Economy
Final Report
2.
Contribution to National Economy
This chapter describes the property industry’s significance and economic contribution to
the Australian 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 Australian 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 Domestic Product (GDP) is the measure of a nation’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 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:

Direct impacts, which are the first round of effects from direct operational
expenditure on goods and services by the property industry.

Flow-on impacts, which comprise the second and subsequent round effects of
increased purchases by suppliers in response to increased sales. Flow-on impacts
are disaggregated to:
o
Industry Support Effects (Type I), which represent the production induced
support activity as a result of additional expenditure by the property industry on
goods and services, 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.
2
Economic Significance of the Property Industry to the Australian Economy
Final Report
2.1
Contribution of the Property Industry to Australia
The Australian property industry is estimated to have directly produced some $462.4 billion
in total industry output in 2013-14. This is estimated to have directly contributed $182.5
billion to Australia’s GDP, or 11.5% of total GDP (see Table 2.1 and Table 2.2). Including
flow-on activity, the estimated total contribution of the property industry to Australia’s
economy was $462.2 billion or 29.2% of total GDP.
The property industry supported over 2.7 million FTE employment positions in 2013-14;
1.17 million directly and 1.54 million through flow-on activity. This represented 27.5% of
Australia’s total employment. These jobs provided approximately $191.8 billion in incomes
(wages and salaries), representing 28.6% of total incomes in Australia in 2013-14.
Table 2.1. Estimated Direct and Flow-On Contribution of the Property Industry to the Australian
Economy, 2013-14
Property Industry Component
Gross
Product ($M)
Incomes
($M)
Employment
(FTE)
Residential Building Construction
$15,730.6
$5,349.6
152,274
Non-Residential Building Construction
$12,909.2
$4,967.2
55,868
Construction Services
$65,733.6
$28,814.4
565,690
Finance
$29,890.1
$8,287.7
54,659
$1,335.1
$779.3
4,898
$34,893.1
$12,500.6
158,787
Direct Contribution
Insurance and Superannuation Funds
Non-Residential Property Operators and Real Estate Services
Professional, Scientific and Technical Services
Total Direct Contribution
$22,042.9
$11,480.9
173,390
$182,534.5
$72,179.7
1,165,565
$119,748.2
$58,873.2
645,718
Flow-On Contribution
Production Induced (Type I)
Consumption Induced (Type II)
$159,948.4
$60,747.7
897,402
Total Flow-On Contribution
$279,696.7
$119,620.9
1,543,120
$462,231.2
$191,800.6
2,708,685
TOTAL CONTRIBUTION TO AUSTRALIA
Notes: Totals may not sum due to rounding.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
Table 2.2. Estimated % Contribution of the Property Industry to the Australian Economy, 2013-14
Property Industry Component
Gross
Product (%)
Incomes
(%)
Employment
(%)
Residential Building Construction
1.0%
0.8%
1.5%
Non-Residential Building Construction
0.8%
0.7%
0.6%
Construction Services
4.2%
4.3%
5.7%
Finance
1.9%
1.2%
0.6%
Insurance and Superannuation Funds
0.1%
0.1%
0.0%
Non-Residential Property Operators and Real Estate Services
2.2%
1.9%
1.6%
Direct Contribution
Professional, Scientific and Technical Services
Total Direct Contribution
1.4%
1.7%
1.8%
11.5%
10.8%
11.8%
7.6%
8.8%
6.5%
Flow-On Contribution
Production Induced (Type I)
Consumption Induced (Type II)
10.1%
9.1%
9.1%
Total Flow-On Contribution
17.7%
17.8%
15.6%
29.2%
28.6%
27.5%
TOTAL CONTRIBUTION TO AUSTRALIA
Notes: Totals may not sum due to rounding.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
3
Economic Significance of the Property Industry to the Australian Economy
Final Report
The property industry’s total (i.e., direct + flow-on) contribution to GDP has almost doubled
over the past 10 years, increasing from $238.4 billion in 2003-04 to $462.2 billion in 201314 (see Figure 2.1). Over this period, the percent contribution to total Australian GDP has
fluctuated between 27.5% and 29.5%, but has generally been increasing over time.
$500,000
30.0%
$450,000
29.5%
$400,000
29.0%
$350,000
28.5%
$300,000
28.0%
$250,000
27.5%
$200,000
27.0%
$150,000
26.5%
$100,000
26.0%
$50,000
25.5%
$0
25.0%
Direct
Type I Flow-On
Type II Flow-On
% Contribution to Total Economy
Property Industry Gross Product ($M)
Figure 2.1. Estimated Direct and Flow-On Contribution of the Property Industry to
Australian GDP, 2003-04 to 2013-14, Current Prices (i.e. Nominal Terms)
% of Australia
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
Annual growth in gross product supported by the Australian property industry (both directly
and through flow-on activity) is presented in Figure 2.2, compared to growth in Australian
GDP. The figure shows growth in the property industry has been somewhat cyclic yet
trending down in recent years, but rebounded in 2013-14. Growth in the national economy
was relatively steady between 2004-05 and 2008-09, but has been experiencing similar
cyclic activity to the property industry since 2009-10, though out of phase with the property
industry until the past two years.
4
Economic Significance of the Property Industry to the Australian Economy
Final Report
Figure 2.2. Annual Growth in Property Industry Supported Gross Product (Direct + FlowOn) and Australian GDP, 2004-05 to 2013-14, Current Prices (i.e. Nominal Terms)
14%
Annual % Growth
12%
10%
8%
6%
4%
2%
0%
Property Industry
Total Economy
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
Employment supported by property industry activities (including direct and flow-on jobs)
steadily increased between 2003-04 and 2010-11, to a peak of 2.82 million FTE jobs in
2010-11 (see Figure 2.3). Total employment supported by the property industry dipped in
2011-12 and 2012-13, but rebounded in 2013-14 to over 2.7 million FTE jobs, the third
highest total since 2003-04.
The property industry supported nearly 30% of Australia’s total employment in 2009-10
and 2010-11, but has fallen to 27.5% in 2013-14.
3,000,000
31.0%
2,750,000
30.5%
2,500,000
30.0%
2,250,000
29.5%
2,000,000
29.0%
1,750,000
28.5%
1,500,000
28.0%
1,250,000
27.5%
1,000,000
27.0%
750,000
26.5%
500,000
26.0%
250,000
25.5%
0
25.0%
Direct
Type I Flow-On
Type II Flow-On
% Contribution to Total Economy
Property Industry Employment (FTEs)
Figure 2.3. Estimated Direct and Flow-On Contribution of the Property Industry to
Australian Employment, 2003-04 to 2013-14
% of Australia
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
5
Economic Significance of the Property Industry to the Australian Economy
Final Report
Annual change in employment supported by the Australian property industry (both directly
and through flow-on activity) is presented in Figure 2.4, compared to the annual change
in Australian employment. The figure shows strong cycles in property industry growth every
two to three years. However, both the peaks and troughs of growth have reduced between
2004-05 and 2013-14, and as outlined in Figure 2.3 above, this is reflective of an industry
that has seen employment levels fluctuating around 2.6 million to 2.8 million since 200607.
By comparison, growth in national employment has generally been much steadier, though
has also trended downward since 2004-05.
Figure 2.4. Annual Growth in Property Industry Supported Employment (Direct + Flow-On)
and Australian Employment, 2004-05 to 2013-14
14%
12%
Annual % Growth
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
Property Industry
Total Economy
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
6
Economic Significance of the Property Industry to the Australian Economy
Final Report
2.2
Contribution of Property Sub-Sectors to Australia
The property industry is disaggregated into Residential and Non-Residential sub-sectors in
Table 2.3 to examine their direct4 contributions to Australia’s economy. The Residential
sub-sector contributes around 60% of direct property industry activity in Australia,
producing around $109.4 billion in gross product and directly supporting nearly 735,000
FTE jobs.
The methodology used to disaggregate the direct contribution of the property industry to
its constituent sub-sectors is described in Appendix B.
Table 2.3. Estimated Direct Contribution of the Property Industry to the Australian Economy
by Property Sub-Sector, 2013-14
Property Sub-Sector/ Type
Gross Product
($M)
Incomes
($M)
Employment
(FTE)
$109,373.2
$42,992.2
734,851
$73,161.4
$29,187.5
430,714
$182,534.5
$72,179.7
1,165,565
Residential
59.9%
59.6%
63.0%
Non-Residential
40.1%
40.4%
37.0%
100.0%
100.0%
100.0%
Direct Contribution
Residential
Non-Residential
Total Direct Contribution
Percent of Total Direct Contribution
Total % of Direct Contribution
Notes: Totals may not sum due to rounding.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
2.3
State Contribution of the Property Industry
A breakdown of the direct and flow-on contribution of the property industry by State/
Territory is presented in Table 2.4 below, and highlights:

New South Wales accounts for the largest share of total national property industry
economic activity, at around 30% of the Australian total. Victoria, Queensland and
Western Australia account for the next largest shares of total Australian property
industry economic activity. Combined, these four States account for approximately
90% of total Australian property industry activity.

The property industry in Victoria, Western Australia and Northern Territory contributed
an above national average proportion of total State/ Territory economic activity (with
the exception of gross product in Western Australia). The property industry in all other
States/ Territories recorded below national average proportions of total State/ Territory
economic activity.

The property industry contributed a considerably higher share of the Northern Territory
economy, and considerably smaller share of Tasmania’s economy, compared to other
States/ Territories in Australia.
4
Only direct contributions have been examined as insufficient data is available to appropriately identify any variances
between sub-sectors contribution to flow-on effects.
7
Economic Significance of the Property Industry to the Australian Economy
Final Report
Table 2.4. Estimated State/ Territory Economic Contribution of the Property Industry, 2013-14
State/ Territory
Direct Contribution
Flow-On (Type I + Type II) Contribution
Total Contribution
Gross
Product ($B)
Incomes
($B)
Employment
(FTE)
Gross
Product ($B)
Incomes
($B)
Employment
(FTE)
Gross
Product ($B)
Incomes
($B)
Employment
(FTE)
New South Wales
$54.5
$20.3
311,352
$88.3
$36.0
451,209
$142.8
$56.3
762,560
Victoria
$41.7
$17.4
272,949
$68.0
$32.7
419,224
$109.7
$50.1
692,173
Queensland
$33.8
$14.7
239,772
$49.9
$22.3
292,684
$83.7
$37.0
532,456
South Australia
$10.5
$4.4
73,325
$16.3
$7.2
95,011
$26.8
$11.6
168,336
Western Australia
$31.8
$11.7
205,979
$44.8
$16.9
224,331
$76.5
$28.7
430,310
Tasmania
$2.0
$0.9
13,923
$2.7
$1.3
16,060
$4.6
$2.1
29,983
Northern Territory
$3.9
$1.3
22,763
$4.5
$1.4
19,739
$8.4
$2.7
42,502
Value Contribution
Australian Capital Territory
$4.3
$1.4
25,502
$5.3
$1.8
24,863
$9.6
$3.2
50,364
$182.5
$72.2
1,165,565
$279.7
$119.6
1,543,120
$462.2
$191.8
2,708,685
New South Wales
29.8%
28.2%
26.7%
31.6%
30.1%
29.2%
30.9%
29.4%
28.2%
Victoria
22.9%
24.1%
23.4%
24.3%
27.3%
27.2%
23.7%
26.1%
25.6%
Queensland
18.5%
20.4%
20.6%
17.8%
18.7%
19.0%
18.1%
19.3%
19.7%
5.8%
6.1%
6.3%
5.8%
6.0%
6.2%
5.8%
6.0%
6.2%
17.4%
16.3%
17.7%
16.0%
14.2%
14.5%
16.6%
14.9%
15.9%
Tasmania
1.1%
1.2%
1.2%
1.0%
1.0%
1.0%
1.0%
1.1%
1.1%
Northern Territory
2.2%
1.8%
2.0%
1.6%
1.2%
1.3%
1.8%
1.4%
1.6%
Australian Capital Territory
2.4%
2.0%
2.2%
1.9%
1.5%
1.6%
2.1%
1.7%
1.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Total Australia
% of National Property Industry
South Australia
Western Australia
Total Australia
% Contribution to State Economy
New South Wales
11.1%
9.7%
10.2%
18.0%
17.1%
14.8%
29.0%
26.8%
25.1%
Victoria
11.9%
10.6%
11.1%
19.4%
19.9%
17.1%
31.3%
30.5%
28.2%
Queensland
11.4%
10.9%
12.1%
16.8%
16.5%
14.8%
28.3%
27.4%
26.9%
South Australia
10.8%
9.8%
10.5%
16.8%
16.0%
13.6%
27.7%
25.9%
24.1%
Western Australia
12.0%
14.4%
17.6%
16.9%
20.8%
19.2%
28.8%
35.3%
36.8%
7.8%
6.8%
7.0%
10.7%
9.8%
8.1%
18.5%
16.6%
15.1%
Northern Territory
17.9%
18.4%
22.1%
20.4%
20.4%
19.2%
38.2%
38.7%
41.3%
Australian Capital Territory
12.1%
9.6%
11.7%
14.8%
12.2%
11.4%
26.9%
21.8%
23.0%
11.5%
10.8%
11.8%
17.7%
17.8%
15.6%
29.2%
28.6%
27.5%
Tasmania
Total Australia
Notes: Totals may not sum due to rounding.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
8
Economic Significance of the Property Industry to the Australian Economy
Final Report
2.4
Comparison with Other Industries
This section presents comparisons of the direct contribution of the Australian property
industry to the Australian economy against other industries in the national 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 national 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.
2.4.1
Gross Domestic Product
Australia’s total GDP was $1.58 trillion in 2013-14. Figure 2.5 shows the property industry
was Australia’s largest industry contributing $182.5 billion directly to the national economy,
or 11.5% of total. The property industry directly contributed approximately 25% to 30%
more to GDP than the next largest sectors, ownership of dwellings ($147.1 billion or 9.3%
of total) and mining ($140.9 billion or 8.9% of total).
Figure 2.5. Direct Contribution to Gross Domestic Product by Industry, 2013-14 ($ Billion)
Property industry
Ownership of dwellings
Mining
Financial and insurance services *
Manufacturing
Health care and social assistance
Public administration and safety
Professional, scientific and technical services *
Transport, postal and warehousing
Education and training
Retail trade
Wholesale trade
Administrative and support services
Information media and telecommunications
Electricity, gas, water and waste services
Agriculture, forestry and fishing
Construction *
Accommodation and food services
Other services
Arts and recreation services
Rental, hiring and real estate services *
$182.5
$147.1
$140.9
$110.9
$108.0
$107.1
$89.1
$85.1
$80.2
$78.8
$75.3
$66.6
$48.3
$46.7
$46.0
$39.8
$39.2
$38.6
$29.8
$13.6
$9.9
$0
$50
$100
Gross Product ($ Billion)
$150
$200
Note: * Only non-property related activity is included for this industry classification. All property related activity is included in the
property industry.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
2.4.2
Incomes
Figure 2.6 shows the property industry was the second highest direct contributing sector
to incomes (wages and salaries) in Australia in 2013-14, paying approximately $72.2 billion
to Australian households (10.8% of Australia’s total wages and salaries paid directly to
workers in 2013-14). The largest income paying sector in 2013-14 was health care and
social assistance, paying approximately $73.8 billion.
9
Economic Significance of the Property Industry to the Australian Economy
Final Report
Figure 2.6. Direct Contribution to Incomes by Industry, 2013-14 ($ Billion)
Health care and social assistance
Property industry
Public administration and safety
Education and training
Manufacturing
Financial and insurance services *
Professional, scientific and technical services *
Retail trade
Wholesale trade
Transport, postal and warehousing
Administrative and support services
Mining
Accommodation and food services
Construction *
Other services
Electricity, gas, water and waste services
Information media and telecommunications
Agriculture, forestry and fishing
Arts and recreation services
Rental, hiring and real estate services *
Ownership of dwellings
$73.8
$72.2
$58.8
$56.5
$49.3
$48.3
$44.7
$41.5
$34.7
$34.1
$32.8
$23.3
$20.9
$17.7
$16.8
$13.4
$12.8
$7.9
$6.5
$4.4
$0.0
$0
$20
$40
Incomes ($ Billion)
$60
$80
Note: * Only non-property related activity is included for this industry classification. All property related activity is included in the
property industry.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
2.4.3
Employment
Figure 2.7 shows that the property industry was the second highest direct contributor to
Australian jobs in 2013-14. The industry employed 1.17 million FTE workers (11.8% of
Australia’s total). This was approximately 15,000 less FTE workers than Australia’s largest
employing industry, health care and social assistance, which employed 1.18 million FTE
workers (12.0% of the Australia’s total).
Figure 2.7. Direct Contribution to Employment by Industry, 2013-14 (‘000 FTEs)
Health care and social assistance
Property industry
Retail trade
Public administration and safety
Education and training
Manufacturing
Professional, scientific and technical services *
Accommodation and food services
Transport, postal and warehousing
Other services
Administrative and support services
Wholesale trade
Agriculture, forestry and fishing
Financial and insurance services *
Mining
Electricity, gas, water and waste services
Information media and telecommunications
Arts and recreation services
Construction *
Rental, hiring and real estate services *
Ownership of dwellings
1,181
1,166
899
828
805
750
605
542
508
410
372
345
314
261
249
178
163
147
99
45
0
0
200
400
600
800
Employment ('000 FTEs)
1,000 1,200 1,400
Note: * Only non-property related activity is included for this industry classification. All property related activity is included in the
property industry.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
10
Economic Significance of the Property Industry to the Australian Economy
Final Report
3.
Contribution to Federal Electorates
The following table provides a summary of the direct contribution of the property industry
to each Federal Electorate in Australia, 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 Federal Electorate, 2013-14
Federal Electorate
Property Industry Contribution
% of Total Electorate
Gross
Product
($M)
Income
($M)
Employment
(FTEs)
Gross
Product
(%)
Income
(%)
Employment
(%)
Banks
$706.3
$258.2
4,129
12.6%
11.8%
12.6%
Barton
$795.4
$273.1
4,098
12.4%
11.3%
11.0%
$1,221.1
$490.8
8,035
7.8%
7.3%
8.6%
Berowra
$653.9
$263.7
4,602
12.7%
11.3%
12.7%
Blaxland
$821.4
$321.1
5,564
8.7%
7.8%
8.9%
Bradfield
$792.0
$300.4
4,780
12.0%
10.2%
10.7%
Calare
$627.9
$259.3
4,553
6.8%
6.6%
7.2%
Charlton
$548.3
$222.6
3,916
8.4%
8.4%
9.6%
Chifley
$442.9
$180.3
3,227
7.6%
7.4%
8.6%
Cook
$921.2
$369.6
6,299
13.5%
12.0%
12.8%
Cowper
$708.9
$268.6
4,645
10.7%
9.2%
9.8%
New South Wales
Bennelong
Cunningham
$1,124.8
$423.6
6,777
10.9%
9.3%
10.0%
Dobell
$769.3
$277.3
4,726
11.4%
9.9%
10.6%
Eden-Monaro
$927.4
$371.7
6,766
14.1%
13.0%
14.2%
Farrer
$709.9
$297.4
5,312
9.5%
8.7%
9.1%
Fowler
$381.8
$133.2
2,252
9.7%
8.7%
9.1%
Gilmore
$724.0
$283.8
4,853
13.8%
11.9%
12.2%
Grayndler
$955.1
$354.2
5,712
10.6%
10.2%
10.5%
Greenway
$784.4
$313.1
5,455
10.2%
9.1%
10.3%
Hughes
$638.3
$251.4
4,300
9.7%
8.6%
9.5%
Hume
$662.8
$278.8
4,986
11.0%
10.4%
10.9%
Hunter
$677.0
$300.5
4,915
5.9%
6.9%
7.5%
$1,021.0
$394.3
6,534
6.1%
5.6%
6.9%
Lindsay
$775.9
$304.9
5,260
10.4%
8.8%
9.5%
Lyne
$630.0
$226.7
3,881
9.4%
8.5%
9.2%
Macarthur
$686.6
$277.8
4,818
11.6%
10.1%
11.0%
Mackellar
$995.4
$401.1
7,044
14.0%
12.8%
14.5%
Macquarie
$678.5
$274.7
4,801
11.9%
10.2%
11.0%
Kingsford Smith
McMahon
Mitchell
New England
$787.5
$331.9
5,874
8.3%
7.6%
9.2%
$1,159.6
$436.4
7,125
13.8%
11.4%
12.1%
$680.9
$287.1
5,113
9.0%
7.7%
8.3%
Newcastle
$1,369.0
$536.5
8,155
10.1%
8.4%
8.9%
North Sydney
$2,655.4
$1,033.2
14,412
10.5%
9.3%
10.4%
Page
$647.7
$267.8
4,512
9.3%
7.7%
8.1%
Parkes
$646.7
$245.1
4,116
6.9%
7.1%
6.3%
$1,886.6
$618.8
7,995
11.4%
8.8%
8.6%
Parramatta
Paterson
$661.3
$267.0
4,474
10.9%
10.1%
10.2%
$2,181.4
$766.7
10,694
12.3%
10.6%
10.8%
Richmond
$694.1
$285.2
4,890
12.7%
11.5%
11.8%
Riverina
$973.0
$359.7
5,971
10.0%
9.2%
9.0%
Robertson
$841.1
$304.3
5,043
11.9%
10.0%
10.4%
Reid
11
Economic Significance of the Property Industry to the Australian Economy
Final Report
Federal Electorate
Property Industry Contribution
% of Total Electorate
Gross
Product
($M)
Income
($M)
Employment
(FTEs)
Gross
Product
(%)
Income
(%)
Employment
(%)
$568.2
$220.4
3,665
12.7%
11.5%
12.0%
$12,846.0
$4,356.9
49,705
14.4%
11.5%
12.0%
$692.7
$258.6
4,407
12.5%
10.9%
11.2%
$1,173.6
$441.0
7,287
13.4%
13.4%
14.2%
$642.2
$236.7
4,010
8.8%
8.3%
8.8%
$1,425.7
$486.2
7,489
11.1%
10.9%
10.7%
$554.4
$230.7
4,174
8.9%
8.1%
9.5%
$54,468.3
$20,342.4
311,352
11.1%
9.7%
10.2%
Aston
$855.6
$401.5
6,873
11.9%
10.4%
11.5%
Ballarat
$887.0
$358.1
6,075
12.2%
10.7%
11.3%
Batman
$684.9
$288.0
4,849
9.9%
9.2%
9.9%
Bendigo
$928.3
$390.8
6,557
12.9%
11.2%
11.6%
Bruce
$1,266.8
$561.5
8,914
9.8%
8.2%
9.0%
Calwell
$1,131.5
$506.3
8,917
8.9%
8.0%
9.6%
$736.2
$343.3
6,144
13.9%
12.3%
13.3%
Shortland
Sydney
Throsby
Warringah
Watson
Wentworth
Werriwa
New South Wales
Victoria
Casey
Chisholm
$1,156.0
$507.8
8,771
10.2%
8.5%
10.1%
Corangamite
$643.1
$283.1
5,125
13.8%
12.6%
13.2%
Corio
$921.0
$415.3
6,830
10.6%
9.1%
9.9%
Deakin
$863.1
$384.4
6,556
11.7%
10.3%
11.2%
Dunkley
$843.2
$351.9
5,964
14.3%
12.3%
12.7%
Flinders
$905.4
$417.6
7,495
15.5%
15.8%
16.5%
Gellibrand
$930.7
$393.3
6,784
8.7%
7.9%
9.1%
Gippsland
$593.5
$292.2
5,141
7.4%
7.9%
8.7%
Goldstein
$809.2
$324.0
5,349
13.9%
12.8%
13.6%
Gorton
$482.0
$204.8
3,776
11.8%
11.1%
13.1%
Higgins
$1,264.5
$512.6
7,983
13.8%
13.1%
13.1%
Holt
$637.6
$282.9
5,113
14.1%
12.9%
14.2%
Hotham
$838.9
$377.9
6,609
9.1%
8.4%
9.4%
Indi
$820.7
$342.2
5,724
11.4%
9.7%
9.9%
Isaacs
$987.7
$458.8
8,136
11.9%
10.8%
12.3%
Jagajaga
$723.3
$308.4
5,323
13.4%
11.3%
12.0%
Kooyong
$1,136.2
$486.3
7,254
13.3%
11.6%
12.3%
La Trobe
$681.1
$286.2
5,066
16.8%
14.8%
15.7%
Lalor
$765.3
$327.2
5,852
10.5%
9.9%
11.5%
Mallee
$697.8
$229.4
3,868
6.7%
7.1%
6.5%
Maribyrnong
$697.4
$279.6
4,717
11.3%
10.0%
10.7%
Mcewen
$798.6
$335.2
5,919
17.4%
15.9%
17.1%
Mcmillan
$752.1
$346.7
5,969
12.3%
11.9%
11.6%
Melbourne
$9,443.7
$3,563.2
41,447
13.4%
10.9%
10.5%
Melbourne Ports
$3,521.7
$1,503.0
20,724
13.4%
12.3%
13.2%
Menzies
$579.1
$245.8
4,125
16.0%
14.0%
14.3%
Murray
$819.2
$345.1
5,708
10.8%
10.4%
9.5%
Scullin
$741.8
$324.1
5,775
13.1%
11.5%
12.9%
Wannon
$598.2
$208.1
3,459
7.8%
8.1%
6.0%
Wills
$575.9
$240.8
4,058
9.7%
9.7%
10.2%
$41,718.1
$17,427.7
272,949
11.9%
10.6%
11.1%
Blair
$579.9
$236.0
3,820
8.5%
7.5%
7.8%
Bonner
$953.3
$426.0
7,001
10.4%
9.8%
11.1%
Victoria
Queensland
12
Economic Significance of the Property Industry to the Australian Economy
Final Report
Federal Electorate
Property Industry Contribution
% of Total Electorate
Gross
Product
($M)
Income
($M)
Employment
(FTEs)
Gross
Product
(%)
Income
(%)
Employment
(%)
Bowman
$846.0
$380.5
6,842
16.8%
15.5%
17.1%
Brisbane
$5,292.1
$2,328.0
31,020
13.2%
11.2%
12.0%
Capricornia
$1,125.1
$472.9
8,117
6.7%
7.8%
9.5%
Dawson
$1,073.5
$464.0
7,960
11.1%
10.5%
11.8%
Dickson
$827.2
$364.7
6,483
16.2%
15.4%
17.2%
Fadden
$952.0
$425.8
7,524
13.2%
13.0%
15.2%
Fairfax
$1,060.6
$447.8
7,491
14.1%
12.2%
13.4%
Fisher
$848.0
$367.4
6,022
15.2%
13.6%
14.8%
Flynn
$1,337.8
$563.4
9,846
9.5%
11.1%
13.2%
Forde
$893.3
$428.0
7,829
15.3%
14.3%
17.1%
Griffith
$1,891.5
$797.1
12,096
14.4%
12.3%
13.1%
Groom
$968.0
$399.3
6,635
11.4%
10.0%
10.6%
Herbert
$1,002.1
$484.8
8,248
11.4%
10.3%
11.8%
Hinkler
$833.6
$368.7
5,912
15.2%
13.0%
13.7%
Kennedy
$644.3
$248.1
4,369
4.3%
5.3%
6.3%
Leichhardt
$905.2
$405.7
6,786
9.6%
8.2%
9.4%
$1,263.4
$563.9
9,308
8.5%
7.8%
9.3%
$661.0
$294.4
5,107
13.7%
12.9%
13.9%
Lilley
Longman
Maranoa
$796.3
$287.6
4,969
5.2%
6.5%
6.7%
Mcpherson
$1,071.6
$464.3
8,000
14.7%
13.8%
15.3%
Moncrieff
$1,666.9
$727.8
11,448
16.4%
14.3%
14.5%
Moreton
$1,289.2
$542.9
9,238
10.9%
9.8%
11.7%
Oxley
$940.6
$407.7
7,135
10.4%
9.8%
11.6%
Petrie
$643.0
$264.3
4,528
13.7%
12.5%
13.6%
$1,023.1
$447.2
8,145
15.4%
14.0%
16.4%
Ryan
$963.1
$411.5
6,385
12.5%
11.2%
12.1%
Wide Bay
$860.1
$386.4
6,338
14.4%
12.4%
13.2%
Wright
$613.2
$285.5
5,170
13.1%
13.2%
14.3%
$33,824.9
$14,691.9
239,772
11.4%
10.9%
12.1%
9.6%
Rankin
Queensland
South Australia
Adelaide
$3,088.5
$1,244.2
17,605
11.5%
9.3%
Barker
$591.9
$241.6
4,314
7.0%
7.2%
6.7%
Boothby
$786.5
$315.8
5,087
13.5%
10.8%
11.2%
Grey
$661.9
$236.4
4,331
6.1%
6.9%
7.1%
Hindmarsh
$1,120.2
$459.8
7,675
11.3%
10.3%
11.7%
Kingston
$604.9
$270.1
4,771
14.8%
13.7%
14.5%
Makin
$604.9
$268.7
4,942
12.7%
11.3%
13.2%
Mayo
$570.4
$273.5
4,973
12.4%
11.8%
12.3%
Port Adelaide
$1,042.9
$477.0
8,575
10.1%
9.3%
10.9%
Sturt
$933.3
$391.8
6,811
16.1%
14.3%
16.1%
Wakefield
$509.5
$231.3
4,241
9.2%
8.6%
9.1%
$10,514.7
$4,410.1
73,325
10.8%
9.8%
10.5%
Brand
$1,184.8
$477.7
8,834
14.3%
14.6%
18.2%
Canning
$1,268.6
$482.6
8,811
13.8%
16.1%
19.2%
Cowan
$2,333.8
$911.7
17,559
23.8%
24.0%
29.6%
Curtin
$2,840.2
$1,146.4
17,984
13.9%
13.9%
16.0%
Durack
$3,179.8
$1,001.2
18,177
5.2%
10.6%
14.8%
Forrest
$1,986.9
$749.1
13,172
15.5%
17.2%
19.7%
Fremantle
$1,950.0
$795.8
14,436
15.3%
15.4%
19.5%
South Australia
Western Australia
13
Economic Significance of the Property Industry to the Australian Economy
Final Report
Federal Electorate
Property Industry Contribution
% of Total Electorate
Gross
Product
($M)
Income
($M)
Employment
(FTEs)
Gross
Product
(%)
Income
(%)
Employment
(%)
Hasluck
$1,418.3
$513.6
9,517
13.8%
13.2%
16.5%
Moore
$1,295.0
$508.2
9,279
22.5%
20.4%
22.5%
O'Connor
$1,435.9
$416.3
7,529
6.0%
8.1%
8.6%
Pearce
$1,136.4
$417.6
7,858
17.2%
18.8%
21.0%
Perth
$4,638.9
$1,756.1
26,457
12.6%
13.3%
15.9%
Stirling
$2,725.4
$967.5
18,440
23.2%
21.7%
27.0%
Swan
$2,459.4
$828.0
14,342
9.8%
9.6%
11.7%
Tangney
$1,924.8
$759.5
13,587
18.7%
18.9%
22.7%
$31,778.2
$11,731.2
205,979
12.0%
14.4%
17.6%
Bass
$404.6
$180.1
2,772
8.0%
6.6%
6.6%
Braddon
$315.9
$141.8
2,370
6.3%
5.8%
6.0%
Denison
$718.4
$318.7
4,762
8.4%
6.8%
7.1%
Franklin
$337.9
$157.2
2,758
11.0%
10.0%
11.1%
Western Australia
Tasmania
Lyons
Tasmania
$180.2
$71.9
1,260
5.3%
5.4%
5.0%
$1,956.9
$869.6
13,923
7.8%
6.8%
7.0%
$1,268.1
$396.1
7,437
12.1%
13.1%
16.2%
Northern Territory
Lingiari
Solomon
Northern Territory
$2,656.7
$882.5
15,326
23.1%
22.5%
26.8%
$3,924.8
$1,278.6
22,763
17.9%
18.4%
22.1%
$1,985.4
$626.3
11,432
12.0%
9.3%
11.4%
Australian Capital Territory
Canberra
Fraser
Australian Capital Territory
$2,363.2
$801.9
14,070
12.2%
9.9%
11.9%
$4,348.6
$1,428.2
25,502
12.1%
9.6%
11.7%
$182,534.5
$72,179.7
1,165,565
11.5%
10.8%
11.8%
Australia
Australia
Notes: Totals may not sum due to rounding.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b; unpublished), APRA (2013), RBA (2015a and b; 2013a and b).
14
Economic Significance of the Property Industry to the Australian Economy
Final Report
4.
Taxation Contribution
This chapter outlines the direct contribution of property related activities to Australian and
State government taxes as well as local government rates and charges. The approach
utilised in allocating Australian and State taxes to property related activities is outlined in
Appendix D.
4.1
Contribution to Australian Taxes
Australian Government property related tax revenues amounted to approximately $21.5
billion in 2013-14. Company income tax (excluding capital gains tax) was the largest
contributor (38.3% of property related taxes or $8.5 billion), followed by capital gains tax
(31.7% or $6.8 billion) and GST (29.8% or $6.4 billion). Other property related taxes
contributed 0.2% of total property related taxes paid to the Australian Government.
Table 4.1. Australian Government Property Related Taxes, 2013-14
State
Capital
Gains Tax
($M) (a)
Company
Income Tax
(excl. CGT)
($M) (b)
GST ($M)
New South Wales
$2,074.7
$2,543.0
Victoria
$1,709.1
$1,810.0
Queensland
$1,192.4
South Australia
Western Australia
Tasmania
Other
Property
Related
Taxes ($M)
Total ($M)
$1,909.6
$14.6
$6,541.9
N/A
$1,462.6
$12.5
$4,994.3
N/A
$1,425.7
$1,185.8
$10.6
$3,814.6
N/A
$373.9
$454.9
$368.6
$3.2
$1,200.6
N/A
$1,141.7
$1,493.8
$1,114.1
$8.4
$3,758.0
N/A
(c)
Contribution
to Total
Australian
Taxes (%)
$70.3
$81.0
$68.6
$0.6
$220.6
N/A
Northern Territory
$122.2
$197.2
$137.6
$0.9
$457.9
N/A
Australian Capital Territory
$128.2
$217.6
$152.5
$1.0
$499.3
N/A
$6,812.6
$8,223.3
$6,399.4
$51.9
$21,487.1
6.2%
Australia
Notes: N/A = Not applicable. (a) Includes Capital Gains Tax paid by individuals, companies and superannuation funds. (b) CGT = Capital Gains
Tax. The Company Income Tax estimates presented are net of the estimated Capital Gains Tax paid by companies. (c) The total Australian
Government taxation revenue from property may be understated as it does not include tax on residents or non-residents for some property
related activities such as through rental income.
Sources: AEC, ABS (2014c), Australian Government (2014), ATO (2015a; 2015b).
4.2
Contribution to State Taxes
Property related activities generated $27.4 billion in State taxation revenue in 2013-14.
Transfer/ stamp duties made up the majority of property-based taxation revenue (57.3%
or $15.7 billion), followed by land tax (23.2% or $6.4 billion). Property related payroll tax
is estimated to have contributed $2.4 billion (8.6%), with other property related taxes
accounting for $3.0 billion (10.9%).
Table 4.2. State Government Property Related Taxes, 2013-14
State
Payroll Tax
($M)
Transfer/
Stamp
Duties
($M)
Land Tax
($M)
Other
Property
Related
Taxes ($M)
Total ($M)
Contribution
to Total
State Taxes
(%)
New South Wales
$685.0
$5,841.6
$2,335.0
$949.9
$9,811.5
38.3%
Victoria
$524.6
$4,167.5
$1,658.7
$958.6
$7,309.4
43.1%
Queensland
$425.0
$2,403.0
$986.0
$391.0
$4,205.0
29.6%
South Australia
$107.1
$801.3
$566.0
$141.0
$1,615.4
36.6%
Western Australia
$522.0
$1,976.2
$662.0
$464.0
$3,624.2
24.6%
Tasmania
$20.5
$154.0
$86.0
$53.0
$313.5
31.6%
Northern Territory
$46.0
$142.8
$0.0
$0.0
$188.7
26.2%
Australian Capital Territory
$31.7
$225.8
$79.0
$34.6
$371.1
38.9%
$2,361.9
$15,712.1
$6,372.7
$2,992.1
$27,438.8
34.9%
Australia
Sources: AEC, ABS (2014c), Australian Government (2014), ACT Government (2014), NSW Government (2014), NT Government (2014),
Queensland Government (2014), SA Government (2014), Tasmanian Government (2014), Victorian Government (2014), WA Government (2014).
15
Economic Significance of the Property Industry to the Australian Economy
Final Report
4.3
Local Government Rates, Fees and Charges
A total of $23.2 billion in rates, fees and charges revenue is estimated to have been raised
by Australian local government authorities in 2013-14. New South Wales local governments
received the largest rates and charges revenues at $7.2 billion, followed by Queensland
($5.7 billion) and Victoria ($4.3 billion).
Table 4.3. Estimates of Local Government Rates, Fees and Charges, 2013-14
State
Total ($M)
New South Wales
$7,187.2
Victoria
$4,320.2
Queensland
$5,727.6
South Australia
$2,033.2
Western Australia
$2,819.1
Tasmania
$614.3
Northern Territory
$167.3
Australian Capital Territory
Australia
$340.0
$23,209.0
Sources: AEC, ABS (2015d; 2014c), ACT Government (2014), Alice Springs Town Council (2014), Barkly Regional Council (2014),
Belyuen Community Government Council (2014), Central Desert Regional Council (2014), City of Darwin Council (2014), City of
Palmerston Council (2014), Coomalie Community Government Council (2014), East Arnhem Regional Council (2014), Katherine
Town Council (2014), Litchfield Council (2014), MacDonnell Regional Council (2014), MAV (2014), NSW Government (2014b),
Queensland Government (2015), Roper Gulf Regional Council (2014), Tasmanian Audit Office (2015), Tiwi Islands Regional Council
(2014), Victoria Daly Regional Council (2014), Wagait Shire Council (2014), West Arnhem Regional Council (2014).
4.4
Summary of Tax Revenues
The property industry contributed approximately $72.1 billion in combined Australian and
State Government tax revenues and local government rates, fees and charges revenue in
2013-14. This equates to 16.0% of total Australian and State/ Territory taxes and local
government rates, fees and charges revenues in 2013-14. State governments received the
largest revenue from property related activities, accounting for 38.0% of total property
related revenues to government.
Australian and State Government property related taxes of $48.9 billion represents a
contribution of approximately 11.4% of total combined Australian and State Government
tax revenues in 2013-14.
Table 4.4. Property Related Tax Revenues
State
(a),
All Levels of Government, 2013-14
Australian
Government
Taxes
($M) (b)
State
Government
Taxes
($M)
Local
Government
Rates, Fees &
Charges ($M)
Total Tax
Revenues
($M)
Contribution
to Total Tax
Revenues (a)
New South Wales
$6,541.9
$9,811.5
$7,187.2
$23,540.6
N/A
Victoria
$4,994.3
$7,309.4
$4,320.2
$16,623.9
N/A
Queensland
$3,814.6
$4,205.0
$5,727.6
$13,747.2
N/A
South Australia
$1,200.6
$1,615.4
$2,033.2
$4,849.2
N/A
Western Australia
$3,758.0
$3,624.2
$2,819.1
$10,201.4
N/A
Tasmania
$220.6
$313.5
$614.3
$1,148.4
N/A
Northern Territory
$457.9
$188.7
$167.3
$814.0
N/A
Australian Capital Territory
$499.3
$371.1
$340.0
$1,210.3
N/A
$21,487.1
$27,438.8
$23,209.0
$72,134.9
16.0%
Australia
Notes: N/A = Not applicable. (a) Includes rates, fees and charges revenues to local government. (b) The total Australian Government taxation
revenue from property may be understated as it does not include tax on residents or non-residents for some property related activities such as
through rental income.
Sources: AEC, ABS (2015d; 2014c), Australian Government (2014), ATO (2015a; 2015b), ACT Government (2014), NSW Government (2014), NT
Government (2014), Queensland Government (2014), SA Government (2014), Tasmanian Government (2014), Victorian Government (2014), WA
Government (2014). Alice Springs Town Council (2014), Barkly Regional Council (2014), Belyuen Community Government Council (2014), Central
Desert Regional Council (2014), City of Darwin Council (2014), City of Palmerston Council (2014), Coomalie Community Government Council
(2014), East Arnhem Regional Council (2014), Katherine Town Council (2014), Litchfield Council (2014), MacDonnell Regional Council (2014),
MAV (2014), NSW Government (2014b), Queensland Government (2015), Roper Gulf Regional Council (2014), Tasmanian Audit Office (2015),
Tiwi Islands Regional Council (2014), Victoria Daly Regional Council (2014), Wagait Shire Council (2014), West Arnhem Regional Council (2014).
16
Economic Significance of the Property Industry to the Australian Economy
Final Report
5.
Investment
This chapter outlines the level of investment in property assets in Australia held either
directly through home ownership and/ or rental properties, or through superannuation
funds.
5.1
Residential Properties Owned and Rented
As at Census night 2011, more than 5.26 million dwellings were either owned outright by
their occupant(s) or were being purchased by their occupant(s), accounting for 68.5% of
total dwellings. An additional 2.26 million dwellings (29.4%) were occupied by tenants
paying rental incomes to owner investors. The remaining dwellings were occupied under
alternative tenure types (e.g. public housing).
Table 5.1. Residential Properties Owned and Rented, by State/ Territory, 2011
State
Owned
Outright
Owned
With a
Mortgage
Being
Purchased
Under Rent/
Buy Scheme
Rented
Other
Total
New South Wales
830,225
822,534
5,604
731,207
47,072
2,436,642
Victoria
671,078
696,153
4,434
506,297
34,617
1,912,579
Queensland
467,541
533,580
3,498
508,571
34,480
1,547,670
South Australia
206,055
218,308
1,169
169,678
15,597
610,807
Western Australia
244,126
300,541
1,846
226,960
21,699
795,172
Tasmania
70,614
65,743
539
49,593
3,932
190,421
Northern Territory
12,570
18,796
162
28,836
3,709
64,073
Australian Capital Territory
37,048
50,435
218
39,704
1,757
129,162
2,539,257
2,706,090
17,470
2,260,846
162,863
7,686,526
Australia
Source: ABS (2013b).
5.2
Property Invested in through Super Funds
The methodology used to estimate the amount of property investment through super funds
is outlined in Appendix E.
Approximately $1.78 trillion in total assets is estimated to have been held by super funds
at the end of the 2013-14 financial year. It is estimated (as no direct data is available)
approximately $182 billion was held across property assets. A total of 14.1 million people
(95.5% of people with superannuation) are estimated to have an investment in property
through their super fund.
A summary of super investment in property is provided in the table below.
Table 5.2. Property Investment through Super Funds, by State/ Territory, 2013-14
State
People with
Superannuation (a)
Derived Number of People
with Investment in
Property through Super
Derived Investment in
Property through Super
($M)
New South Wales
4,713,389
4,499,144
$58,079.4
Victoria
3,696,862
3,528,823
$45,553.5
Queensland
2,953,862
2,819,596
$36,398.1
South Australia
1,077,233
1,028,268
$13,273.9
Western Australia
1,617,795
1,544,258
$19,934.8
Tasmania
326,376
311,540
$4,021.7
Northern Territory
146,930
140,251
$1,810.5
Australian Capital Territory
245,317
234,166
$3,022.8
14,777,763
14,106,047
$182,094.8
Australia
Note: (a) The breakdown of people with superannuation by State/ Territory has been estimated based on the number of people age 18 and over
as at June 2014. Additional details of the method used is outlined in Appendix E.
Sources: AEC, APRA (2015; 2014), ABS (2015d; 2014d), Financial Services Council (unpublished).
17
Economic Significance of the Property Industry to the Australian Economy
Final Report
References
ABS (2015a). Building Activity, Australia, Sep 2014. Cat. No. 8752.0, Australian Bureau
of Statistics, Canberra.
ABS (2015b). Engineering Construction Activity, Australia, Sep 2014. Cat. No. 8762.0,
Australian Bureau of Statistics, Canberra.
ABS (2015c). Counts of Australian Businesses, including Entries and Exits, Jun 2010 to
Jun 2014. Cat. No. 8165.0, Australian Bureau of Statistics, Canberra.
ABS (2015d). Regional Population Growth, Australia, 2013-14. Cat. No. 3218.0,
Australian Bureau of Statistics, Canberra.
ABS (2014a). Australian National Accounts: State Accounts, 2013-14. Cat. No. 5220.0,
Australian Bureau of Statistics, Canberra.
ABS (2014b). Estimates of Industry Multifactor Productivity, 2013-14. Cat. No.
5260.0.55.002, Australian Bureau of Statistics, Canberra.
ABS (2014c). Taxation Revenue, Australia, 2012-13. Cat. No. 5506.0, Australian Bureau
of Statistics, Canberra.
ABS (2014d). Population by Age and Sex, Regions of Australia, 2013. Cat. No. 3235.0,
Australian Bureau of Statistics, Canberra.
ABS (2013a). Australian National Accounts: Input-Output Tables, 2009-10. Cat. No.
5209.0.55.001, Australian Bureau of Statistics, Canberra.
ABS (2013b). 2011 TableBuilder Pro, 2011 Third Release. Cat. No. 2073.0, Australian
Bureau of Statistics, Canberra.
ABS (2008). Australian and New Zealand Standard Industrial Classification (ANZSIC),
2006 (Revision 1.0). Cat. No. 1292.0, Australian Bureau of Statistics, Canberra.
ABS (unpublished). Correspondence files for SA2 and LGA to Federal Electorates (2013).
Unpublished data purchased from the Australian Bureau of Statistics, Canberra.
ACT Government (2014). Consolidated Annual Financial Statements, 2013-14. Australian
Capital Territory Government, Canberra.
Alice Springs Town Council (2014). Alice Springs Town Council Annual Report 2013/14.
Available from: http://www.alicesprings.nt.gov.au/council/documents/annualreports. Last accessed: 15 May, 2015.
APRA (2015). Quarterly MySuper Statistics – December Quarter 2014. Available from:
http://www.apra.gov.au/Super/Publications/Pages/Quarterly-MySuperstatistics.aspx. Last accessed: 28 April, 2015.
APRA (2014). Superannuation Fund-level Profiles and Financial Performance. Australian
Prudential Regulation Authority. Available from:
http://www.apra.gov.au/Super/Publications/Pages/superannuation-fund-levelpublications.aspx. Last accessed: 28 April, 2015.
APRA (2013). Statistics, Half Yearly General Insurance Bulletin (June 2005 to June 2013).
Australian Prudential Regulation Authority. Available from:
http://www.apra.gov.au/lifs/Publications/Pages/li-half-yearly-statistics.aspx. Last
accessed: 18 March 2015.
ATO (2015a). Capital Gains Tax - Table 2: Net Capital Gains subject to tax, by entity
type, 1989-90 to 2012-13 income years. Australian Taxation Office. Available
from: https://data.gov.au/dataset/taxation-statistics-201213/resource/7d0e7299-93a7-40b0-a27e-94efa88eddf7. Last accessed: 20 May,
2015.
ATO (2015b). Individuals - Table 6: Selected items, by state/territory and postcode,
2012-13 income year. Australian Taxation Office. Available from:
https://data.gov.au/dataset/taxation-statistics-2012-13/resource/fa6fda82-a70d4f4c-bb00-203ffc4d20af. Last accessed: 20 May, 2015.
18
Economic Significance of the Property Industry to the Australian Economy
Final Report
Australian Government (2014). Consolidated Financial Statements for the Year Ended
June 2014. Australian Government, Canberra.
Barkly Regional Council (2014). Barkly Regional Council Annual Report 2013/14.
Available from: http://barkly.nt.gov.au/council/d. Last accessed: 15 May, 2015.
Belyuen Community Government Council (2014). Belyuen Community Government
Council Annual Report 2013/14. Available from:
http://www.belyuen.nt.gov.au/AnnualReport.html. Last accessed: 15 May, 2015.
Central Desert Regional Council (2014). Central Desert Regional Council Annual Report
2013/14. Available from: http://centraldesert.nt.gov.au/annual-reports. Last
accessed: 15 May, 2015.
City of Darwin Council (2014). City of Darwin Council Annual Report 2013/14. Available
from: http://www.darwin.nt.gov.au/council/publications-and-reports. Last
accessed: 15 May, 2015.
City of Palmerston Council (2014). City of Palmerston Council Annual Report 2013/14.
Available from: http://www.palmerston.nt.gov.au/council/councilreporting/council-publications. Last accessed: 15 May, 2015.
Coomalie Community Government Council (2014). Coomalie Community Government
Council Annual Report 2013/14. Available from:
http://www.coomalie.nt.gov.au/index.php/about-us/council-publication. Last
accessed: 15 May, 2015.
East Arnhem Regional Council (2014). East Arnhem Regional Council Annual Report
2013/14. Available from: http://www.eastarnhem.nt.gov.au/publicationsresources/. Last accessed: 15 May, 2015.
Financial Services Council (unpublished). Australians with Superannuation. Unpublished
data provided via email (23rd September, 2015), Financial Services Council.
Katherine Town Council (2014). Katherine Town Council Annual Report 2013/14.
Available from: http://www.ktc.nt.gov.au/Your-Council/Publications-andPolicies/Annual-Reports. Last accessed: 15 May, 2015.
Litchfield Council (2014). Lichfield Council Annual Report 2013/14. Available from:
http://www.litchfield.nt.gov.au/council/council-plans-and-publications/annualreports. Last accessed: 15 May, 2015.
MacDonnell Regional Council (2014). MacDonnell Regional Council Annual Report
2013/14. Available from: http://macdonnell.nt.gov.au/about/annual-reports. Last
accessed: 15 May, 2015.
MAV (2014). Capital works the key focus of council budgets. Media Release, Friday 5 July
2013. Municipal Association of Victoria. Available from:
http://www.mav.asn.au/about-local-government/local-governmentfinance/Pages/council-rates-property-valuations.aspx. Last accessed: 14 May,
2015.
NSW Government (2014a). Report on State Finances, 2013-14. New South Wales
Government, Sydney.
NSW Government (2014b). Council Comparative Reports – 2011/12 – 2012/13 Time
Series Data. New South Wales Government Office of Local Government. Available
from: https://www.olg.nsw.gov.au/public/my-local-council/NSW-localgovernment-comparative-information/council-comparative-reports. Last
accessed: 14 May, 2015.
NT Government (2014). Treasurer's Annual Financial Report, 2013-14. Northern Territory
Government, Darwin.
Queensland Government (2015). Queensland Local Government Comparative Information
2013/14. Queensland Government Department of Infrastructure, Local
Government and Planning. Available from: http://www.dip.qld.gov.au/aboutlocal-government-and-councils/queensland-local-government-comparativeinformation.html. Last accessed: 14 May, 2015.
19
Economic Significance of the Property Industry to the Australian Economy
Final Report
Queensland Government (2014). 2013-14 Report on State Finances. Queensland
Government, Brisbane.
RBA (2015a). Assets of Financial Institutions – B01. Bulletin Statistical Tables, Reserve
Bank of Australia. Available from:
http://www.rba.gov.au/statistics/tables/index.html#assets_liabilities. Last
accessed: 18 March 2015.
RBA (2015b). Superannuation Funds – Outside Life Offices Table – B15. Bulletin
Statistical Tables, Reserve Bank of Australia. Available from:
http://www.rba.gov.au/statistics/tables/index.html#assets_liabilities. Last
accessed: 18 March 2015.
RBA (2013a). Banks – Assets – B02. Discontinued Data, Reserve Bank of Australia.
Available from:
http://www.rba.gov.au/statistics/tables/index.html#assets_liabilities. Last
accessed: 18 March 2015.
RBA (2013b). Credit Unions – Selected Assets and Liabilities – B08. Discontinued Data,
Reserve Bank of Australia. Available from:
http://www.rba.gov.au/statistics/tables/index.html#assets_liabilities. Last
accessed: 18 March 2015.
Roper Gulf Regional Council (2014). Roper Gulf Regional Council Annual Report 2013/14.
Available from: http://ropergulf.nt.gov.au/plans-report/. Last accessed: 15 May,
2015.
SA Government (2014). 2013-14 Final Budget Outcome and Consolidated Financial
Report. South Australian Government, Adelaide.
Tasmanian Audit Office (2015). Report of the Auditor-General No. 7 of 2014-15, Volume
4. Tasmanian Audit Office. Available from:
http://www.audit.tas.gov.au/publications/financial-audit-reports/. Last accessed:
14 May, 2015.
Tasmanian Government (2014). Treasurer's Annual Financial Report, 2013-14.
Tasmanian Government, Hobart.
Tiwi Islands Regional Council (2014). Tiwi Islands Regional Council Annual Report
2013/14. Available from: http://www.tiwiislands.nt.gov.au/about.html. Last
accessed: 15 May, 2015.
Victoria Daly Regional Council (2014). Victoria Daly Regional Council Annual Report
2013/14. Available from: http://www.victoriadaly.nt.gov.au/governance/shireplan. Last accessed: 15 May, 2015.
Victorian Government (2014). 2013-14 Financial Report (incorporating Quarterly
Financial Report No. 4). Victorian Government, Melbourne.
WA Government (2014). 2014-15 Budget Paper No. 3. Economic and Fiscal Outlook.
Western Australian Government, Perth.
Wagait Shire Council (2014). Wagait Shire Council Annual Report 2013/14. Available
from: http://wagait.nt.gov.au/publications-2/. Last accessed: 15 May, 2015.
West, G. R. (1993). User’s Guide, Input-Output Analysis for Practitioners An Interactive
Input-Output Software Package Version 7.1. Department of Economics. University
of Queensland, 1993.
West Arnhem Regional Council (2014). West Arnhem Regional Council Annual Report
2013/14. Available from: http://westarnhem.nt.gov.au/publications/. Last
accessed: 15 May, 2015.
20
Economic Significance of the Property Industry to the Australian Economy
Final Report
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 semidetached 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.
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

The construction of hotels, hostels, hospitals and other public buildings are included in
Class 3020 Non-Residential Building Construction

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 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.
Not included are units mainly engaging in:

Off-site production of prefabricated metal buildings or metal 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.
21
Economic Significance of the Property Industry to the Australian Economy
Final Report
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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
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.
Not included are units mainly engaging in:
22
Economic Significance of the Property Industry to the Australian Economy
Final Report

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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
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.
Not included are units mainly engaging in:

Units mainly engaged in the installation and monitoring of security systems are included
in Class 7712 Investigation and Security Services.
23
Economic Significance of the Property Industry to the Australian Economy
Final Report
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.
Not included are units mainly engaging in:

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
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
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).
Not included are units mainly engaging in:
24
Economic Significance of the Property Industry to the Australian Economy
Final Report

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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
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.
Not included are units mainly engaging in:

Operating development, savings and trading banks are included in Class 6221 Banking

Operating credit unions are included in Class 6223 Credit Union Operation.
25
Economic Significance of the Property Industry to the Australian Economy
Final Report
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.
Not included are units mainly engaging in:

Operating development, savings and trading banks are included in Class 6221 Banking

Operating building societies are included in Class 6222 Building Society Operation.
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 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).
Not included are units mainly engaging in:

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.
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 property industry assets in the
total assets of general insurance.
Class 6330 – Superannuation Funds (Partial Only)
This class consists of units of separately constituted funds mainly engaged in providing
retirement benefits.
Not included are units mainly engaging in:

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.
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 land and buildings in
superannuation total investment. Although part of equities and units in trusts is propertyrelated, data limitations regarding loans to the commercial sector precluded its inclusion.
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.
Not included are units mainly engaging in:

Units mainly engaged in managing or organising construction projects as the prime
contractor are included in the appropriate classes of Division E Construction.
26
Economic Significance of the Property Industry to the Australian Economy
Final Report
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.
Not included are units mainly engaging in:

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.
Not included are units mainly engaging in:

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.
27
Economic Significance of the Property Industry to the Australian Economy
Final Report
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 Federal Electorate economies in terms of output, gross
value added activity, employment and income (i.e., wages and salaries).
Overview of IO Modelling
Input-Output (IO) analysis demonstrates inter-industry relationships within 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. IO analysis shows the direct and indirect
(flow-on) effects of one industry on other industries and the general economy. As such, IO
modelling can be used to demonstrate the economic contribution of an industry on the overall
economy and how much the economy relies on this industry or to examine a change in final
demand of any one industry and the resultant change in activity of its supporting industries.
The economic contribution can be traced through the economic system via:

Direct impacts, which are the first round of effects from direct operational expenditure
on goods and services.

Flow-on impacts, which comprise the second and subsequent round effects of
increased purchases by suppliers in response to increased sales. Flow-on impacts can
be disaggregated to:
o
Industry Support Effects (Type I), which represent the production induced
support activity as a result of additional expenditure by the industry experiencing
the stimulus on goods and services in the intermediate usage quadrant, 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 economic system.
These effects can be identified through the examination of five 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.

Value added: Refers to the value of output after deducting the cost of goods and
services inputs in the production process. Value added defines the true net contribution
and is subsequently the preferred measure for assessing economic impacts.

Gross product: Gross product (or more commonly known as Gross Domestic/ State/
Regional Product) is a similar measure to value added, but also includes taxes less
subsidies on the final goods and services produced. Gross product is the most
commonly used headline measure of economic activity.

Income: Measures the level of wages and salaries paid to employees of the industry
under consideration and to other industries through flow-on activity.

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.
28
Economic Significance of the Property Industry to the Australian Economy
Final Report
IO Assumptions
The key assumptions and limitations of Input-Output analysis include:

The inputs purchased by each industry are a function only of the level of output of that
industry. The input function is generally assumed linear and homogenous of degree
one (which implies constant returns to scale and no substitution between inputs).

Each commodity (or group of commodities) is supplied by a single industry or sector of
production. This implies that there is only one method used to produce each commodity
and that each industry or sector has only one primary output.

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.

The system is in equilibrium at given prices. This is not the case in an economic system
subject to external influences.

In the static input-output model, there are no capacity constraints so that the supply
of each good is perfectly elastic. Each industry can supply whatever quantity is
demanded of it and there are no capital restrictions. This assumption would come into
play depending upon the magnitude of the changes in quantities demanded.
Despite these limitations, IO techniques provide a solid approach for taking account of the
inter-relationships between the various sectors of the economy in the short-term and provide
useful insight into the quantum of final demand for goods and services, both directly and
indirectly, generated by the property industry.
Significance Assessment Versus Impact Assessment
The framework employed in significance assessment differs from that employed in
economic impact analysis in that economic significance assessment primarily seeks the
contribution of an existing industry as opposed to the impact of a “stimulus” 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 2009-10 Australian transaction table (ABS,
2013a).
Estimates of gross production (by industry) in the study areas (Australia, each State/
Territory and each Federal Electorate) were developed based on the percent contribution
to employment (by place of work) of the study areas to the Australian economy (ABS,
2012), and applied to Australian gross output identified in the 2009-10 Australian table.
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).
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).
29
Economic Significance of the Property Industry to the Australian Economy
Final Report

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.
Input-Output tables utilise an aggregated system of industry classifications based on the
ANZSIC system. In total, the 2009-10 Input-Output tables produced by the ABS (2013a)
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-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 code5; 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 code6.
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).
Significance Assessment Approach
Contribution to Queensland and its Regions
The significance assessment is initially undertaken for the 2009-10 financial year to be
consistent with the Input-Output transaction tables utilised. These estimates are then
“rebased” to 2013-14 values using:

Data from the National and State Accounts (ABS, 2014a) to identify growth between
2009-10 and 2013-14 in gross product and gross value add for each industry of the
economy.

Data on the value of building work done (ABS, 2015a) and the value of engineering
construction work done (ABS, 2015b) to estimate the proportion of overall construction
sector growth attributable to building construction versus engineering.
5
The “Professional, Scientific and Technical Services” Input-Output sector uses this approach based on data from
the ABS (2010b and c).
6
The “Finance” and “Insurance and Superannuation Funds” sectors use this approach based on data from the RBA
(2012a, b, c and d) and APRA (2009 to 2012).
30
Economic Significance of the Property Industry to the Australian Economy
Final Report

Data on labour productivity increases (ABS, 2014b) to identify changes in productivity
per employee for each industry between 2009-10 and 2013-14. These estimates were
then applied to 2013-14 production (estimated above) to identify 2013-14 employment
for each industry.

Estimates of incomes in 2013-14 were obtained assuming that the relationship between
income and output in 2009-10 remains constant, which is consistent with the stylised
fact of cost shares of output being close to constant over the long-term.
Time series estimates for Australia (and each State/ Territory) were also developed. The
approach used for each year followed the same process as for 2013-14.
Estimates of the flow-on effects of the property industry in 2013-14 are obtained
assuming constant proportion between individual industries’ flow-on effects and the direct
(total) effects (output, GVA, income and employment) in 2009-10. 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 Federal 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).
3. To allocate to each Federal Electorate the same approach is used as for States/
Territories in redistributing inter-regional flows, but uses the proportional contribution
of each Federal Electorate to the State/ Territory in which it is located to allocate interregional flows within the State/ Territory rather than Australia.
Contribution to Australia by Property Sub-Sector
The direct contribution of the property industry to the Australian economy has also been
disaggregated across Residential and Non-Residential property sub-sectors. 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 is entirely allocated to the Residential
property sub-sector.

Direct “Non-Residential Building Construction” effects is entirely allocated to the NonResidential property sub-sector.

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 the
corresponding year of analysis (ABS, 2015a).
31
Economic Significance of the Property Industry to the Australian Economy
Final Report
Appendix C: Direct Contribution to Australia
by Industry
The following table presents a comparison of the direct economic contribution of the
property industry to the Australian economy compared to other industries.
Table C.1. Comparison of Direct Contribution of the Property Industry and Other Industries
to the Australian Economy, 2013-14
Industry
Gross
Product ($B)
Incomes
($B)
Employment
(‘000 FTE)
$182.5
$72.2
1,166
$39.8
$7.9
314
Mining
$140.9
$23.3
249
Manufacturing
Property industry
Agriculture, forestry and fishing
$108.0
$49.3
750
Electricity, gas, water and waste services
$46.0
$13.4
178
Construction *
$39.2
$17.7
99
Wholesale trade
$66.6
$34.7
345
Retail trade
$75.3
$41.5
899
Accommodation and food services
$38.6
$20.9
542
Transport, postal and warehousing
$80.2
$34.1
508
Information media and telecommunications
$46.7
$12.8
163
$110.9
$48.3
261
Financial and insurance services *
Rental, hiring and real estate services *
$9.9
$4.4
45
Professional, scientific and technical services *
$85.1
$44.7
605
Administrative and support services
$48.3
$32.8
372
Public administration and safety
$89.1
$58.8
828
$78.8
$56.5
805
$107.1
$73.8
1,181
Education and training
Health care and social assistance
Arts and recreation services
$13.6
$6.5
147
Other services
$29.8
$16.8
410
Ownership of dwellings
Total
$147.1
$0.0
0
$1,583.6
$670.7
9,867
Notes: Totals may not sum due to rounding.
Sources: AEC, ABS (2015a, b and c; 2014a and b; 2013a and b), APRA (2013), RBA (2015a and b; 2013a and b).
32
Economic Significance of the Property Industry to the Australian Economy
Final Report
Appendix D: Allocation of Taxes
Australian Taxes
Australian Government taxation revenues have been allocated to property related activities
based on the allocation approach outlined in Table D.1. All taxation data except capital
gains tax was sourced from the Australian Government (2014). Capital gains tax
components of personal income tax, company income tax and income tax paid by
superannuation funds was estimated as follows:

Historic data of capital gains tax paid by individuals, companies and super funds
between 2008-09 and 2012-13 was collated from the Australian Taxation Office (ATO,
2015a).

The average contribution of capital gains tax paid by individuals, companies and super
funds to total personal income tax, company income tax and income tax paid by super
funds (respectively) was estimated by dividing the five year ATO data by the total
personal income tax, company income tax and income tax paid by super funds revenue
received by the Australian Government between 2008-09 and 2012-13 (ABS, 2014c).

The average percent contribution of capital gains tax between 2008-09 and 2012-13
was applied to 2013-14 estimates of total personal income tax, company income tax
and income tax paid by super funds revenue received by the Australian Government
(Australian Government, 2014).
Table D.1. Allocation of 2013-14 Australian Government Taxes to Property Related Activities
Tax Item
Total Tax
($M)
Method of Allocation
Income Taxes Levied on Individuals
Personal Income Tax
Capital Gains Tax Component
Tax on Other Income Component
Fringe Benefits Tax
Total Income Taxes Levied on Individuals
$166,479
$4,066
$162,413
$4,285
Property related activity
Not allocated to property
(a)
Not property related
$170,764
Income Taxes Levied on Enterprises
Company Income Tax
Capital Gains Tax Component
Tax on Other Income Component
Income Tax Paid by Superannuation Funds
Capital Gains Tax Component
Tax on Other Income Component
Total Income Taxes Levied on Enterprises
Income Levied on Non-Residents
Government Borrowing Guarantee Levy
Superannuation Guarantee Charge
$70,549
$2,529
$68,020
Property related activity
By industry based on contribution to GDP – Incomes
(a)
$6,147
$218
$5,929
Property related activity
Not allocated to property
(a)
Not allocated to property
(b)
$76,696
$1,436
$10
$482
Not property related
By industry based on contribution to Incomes
Taxes on the Provision of Goods Services
Goods and Services Tax (GST)
General Taxes (Sales Taxes)
$55,517
By industry based on contribution to GDP
$1,302
Not property related
$26,272
Not property related
Taxes on International Trade
$9,282
Not property related
Other Taxes on Provision of Goods and Services
$7,447
Not property related
Excises and Levies
Total Taxes on Provision of Goods/ Services
Total Taxation Revenue
$99,820
$349,208
Notes: (a) Personal income tax, company tax and income tax paid by superannuation funds includes potential income streams from property
related activities (e.g. rents) other than capital gains. However, the Australian Government does not release any data to enable a breakdown of
these taxes by property related components and has therefore been excluded from this assessment. (b) This includes income and withholding tax
on some property related activities, including sale of property and incomes earned from property (e.g., rents). However, the Australian
Government does not release any data to enable a breakdown of income tax levied on non-residents by property related component and has
therefore been excluded from this assessment.
Sources: AEC, ABS (2014c), Australian Government (2014), ATO (2015a; 2015b).
33
Economic Significance of the Property Industry to the Australian Economy
Final Report
Australian Government tax revenues have been allocated to each State/ Territory using
the following approach:

Capital gains tax on individuals was allocated based on the 2012-13 proportional split
by State/ Territory outlined by the ATO (2015b).

Capital gains tax on companies and super funds was allocated based on the State/
Territory contribution to total property related gross product in 2013-14.

Company income tax (excluding capital gains tax) was allocated based on the State/
Territory contribution to total property related gross product less total property related
incomes paid in 2013-14.

GST was allocated based on the State/ Territory contribution to total property related
gross product in 2013-14.

Other property related taxes (which consist of super guarantee charges) were allocated
based on the State/ Territory contribution to total property related incomes paid in
2013-14.
A summary of Australian Government taxes based on the above methodology is outlined
in Table D.2.
Table D.2. Australian Government Property Related Taxes, 2013-14
State
Capital
Gains Tax
($M) (a)
Company
Income Tax
(excl. CGT)
($M) (b)
GST ($M)
Other
Property
Related
Taxes ($M)
Total ($M)
New South Wales
$2,074.7
$2,543.0
$1,909.6
$14.6
$6,541.9
Victoria
$1,709.1
$1,810.0
$1,462.6
$12.5
$4,994.3
Queensland
$1,192.4
$1,425.7
$1,185.8
$10.6
$3,814.6
South Australia
(c)
$373.9
$454.9
$368.6
$3.2
$1,200.6
$1,141.7
$1,493.8
$1,114.1
$8.4
$3,758.0
$70.3
$81.0
$68.6
$0.6
$220.6
Northern Territory
$122.2
$197.2
$137.6
$0.9
$457.9
Australian Capital Territory
$128.2
$217.6
$152.5
$1.0
$499.3
$6,812.6
$8,223.3
$6,399.4
$51.9
$21,487.1
Western Australia
Tasmania
Australia
Notes: (a) Includes Capital Gains Tax paid by individuals, companies and superannuation funds. (b) CGT = Capital Gains Tax. The
Company Income Tax estimates presented are net of the estimated Capital Gains Tax paid by companies. (c) The total Australian
Government taxation revenue from property may be understated as it does not include tax on residents or non-residents for some
property related activities such as through rental income.
Sources: AEC, ABS (2014c), Australian Government (2014), ATO (2015a; 2015b).
State Taxes
In estimating State government taxes, some tax items in the relevant State’s Budget or
Financial Statement papers were grouped, and were split into sub-items based on historic
shares (past five years) outlined in the Taxation Revenue, Australia, 2012-13 (ABS, 2014c)
data.
State Government taxation and royalty revenues have been allocated to property related
activities based on the allocation approach outlined in Table D.3.
34
Economic Significance of the Property Industry to the Australian Economy
Final Report
Table D.3. Allocation of 2013-14 State/ Territory Taxes to Property Related Activities
Tax Item
NSW
($M)
VIC
($M)
QLD
($M)
SA
($M)
WA
($M)
TAS
($M)
NT
($M)
ACT
($M)
Method of Allocation
$7,083
$4,949
$3,914
$1,089
$3,617
$300
$250
$330
Across industry based on contribution to incomes
Transfer
$5,842
$4,168
$2,403
$801
$1,976
$154
$143
$226
Property related activity
Land Tax
$2,335
$1,659
$986
$566
$662
$86
$0
$79
Property related activity
Property related activity
Payroll Tax
Property Taxes
Other Property Related Taxes
$950
$959
$391
$141
$464
$53
$0
$35
$9,127
$6,785
$3,780
$1,508
$3,102
$293
$143
$339
Gambling Taxes and Levies
$1,910
$1,672
$1,044
$388
$309
$94
$60
$52
Not property related
Taxes on Financial Institutions (a)
$1,992
$1,071
$847
$463
$619
$80
$46
$76
Not property related
$638
$115
$230
$57
$56
$31
$0
$0
Not property related
Total Property Related Taxes
Guarantee Fees
Motor Vehicle Taxes
Stamp Duty on Vehicle Registrations
Other Motor Vehicle Taxes
Total Motor Vehicle Taxes
Other Taxes
Royalties from Mining
Total Taxation and Royalty Revenue
$698
$663
$486
$167
$396
$62
$30
$26
Not property related
$2,166
$1,233
$1,543
$400
$725
$96
$38
$108
Not property related
$2,864
$1,896
$2,029
$567
$1,121
$158
$67
$134
$681
$413
$0
$45
$0
$0
$0
$23
Not property related
$1,338
$58
$2,378
$291
$5,911
$36
$154
$0
Not property related
$25,633
$16,959
$14,222
$4,408
$14,735
$992
$721
$954
Note: NT and ACT governments also collect municipal rates revenues. (a) Includes insurance.
Sources: AEC, ABS (2014c), Australian Government (2014), ACT Government (2014), NSW Government (2014), NT Government (2014), Queensland Government (2014), SA Government (2014), Tasmanian Government
(2014), Victorian Government (2014), WA Government (2014).
35
Economic Significance of the Property Industry to the Australian Economy
Final Report
A summary of State Government taxes based on the above methodology is outlined in
Table D.4.
Table D.4. State Government Property Related Taxes, 2013-14
State
Payroll Tax
($M)
Transfer/
Stamp
Duties ($M)
Land Tax
($M)
Other Property
Related Taxes
($M)
Total ($M)
New South Wales
$685.0
$5,841.6
$2,335.0
$949.9
$9,811.5
Victoria
$524.6
$4,167.5
$1,658.7
$958.6
$7,309.4
Queensland
$425.0
$2,403.0
$986.0
$391.0
$4,205.0
South Australia
$107.1
$801.3
$566.0
$141.0
$1,615.4
Western Australia
$522.0
$1,976.2
$662.0
$464.0
$3,624.2
Tasmania
$20.5
$154.0
$86.0
$53.0
$313.5
Northern Territory
$46.0
$142.8
$0.0
$0.0
$188.7
Australian Capital Territory
$31.7
$225.8
$79.0
$34.6
$371.1
$2,361.9
$15,712.1
$6,372.7
$2,992.1
$27,438.8
Australia
Sources: AEC, ABS (2014c), Australian Government (2014), ACT Government (2014), NSW Government (2014), NT Government
(2014), Queensland Government (2014), SA Government (2014), Tasmanian Government (2014), Victorian Government (2014),
WA Government (2014).
Local Government Rates, Fees and Charges
Local government rates, fees and charges data for 2013-14 was collated for the States/
Territories of Victoria (MAV, 2014), Queensland (Queensland Government, 2015),
Tasmania (Tasmanian Audit Office, 2015) and Australian Capital Territory (ACT
Government, 2014) from relevant State Authority publications.
Data for 2013-14 for New South Wales was not available from the relevant State Authority.
Data for 2012-13 was available (NSW Government, 2014b), and an indicative estimate for
2013-14 was calculated as follows:

Calculate the average rates, fees and charges paid per person in New South Wales
2012-13 (by dividing rates, fees and charges revenues by total population (ABS,
2015d)).

Multiply the estimated average rates, fees and charges paid per person in 2012-13 to
the New South Wales population estimate for 2013-14 (ABS, 2015d).
Local government rates, fees and charges data for 2013-14 for the Northern Territory was
sourced from relevant annual reports for each Council in the Northern Territory.
Local government rates and charges data was not collated for South Australia and Western
Australia, as no single authority publishes this data in these States and budget
considerations precluded the collation of this data from individual Councils. An indicative
estimate of the rates, fees and charges revenues for 2013-14 in these States was estimated
as follows:

Calculate the average municipal rates paid per person between 2003-04 and 2012-13
(by dividing municipal rates revenues by State (ABS, 2014c) by total population (ABS,
2015d) in each corresponding year).

Calculating the average annual change in municipal rates per person for each State
between 2003-04 and 2012-13, to estimate an average municipal rates per person for
each State in 2013-14.

Multiplying the estimated average municipal rates per person for each State in 201314 to State population estimates for 2013-14 (ABS, 2015d).

Inflating the 2013-14 municipal rates data to include an indicative estimate of fees and
charges revenue by applying the difference between actual 2013-14 data for the States
in which data is available and their respective municipal rates estimates from ABS data
(2014c).
All rates, fees and charges revenues are included as property-related revenue to local
governments.
36
Economic Significance of the Property Industry to the Australian Economy
Final Report
Appendix E: Property Investment through
Super Methodology
Total Super Fund Investment
An estimated $1.62 trillion in total assets was held by super funds at the end of the 201213 financial year (APRA, 2014). Historic trends between 2003-04 and 2012-13 were used
to develop an indicative estimate of $1.78 trillion in assets held through super in 2013-14.
Property Investment
As at the December Quarter 2014, property assets contributed approximately 10.25% of
total asset investment for 120 MySuper products (APRA, 2015), with 95.5% of the 120
products having property assets within the portfolio. Assuming this mix is representative
of asset investment across all super funds, it was derived approximately $182 billion of the
total $1.78 trillion in super fund investment in 2013-14 is in property assets.
Number of People Investing in Property through Super
The number of people with investment in property through their super was derived based
on the number of people with superannuation in Australia (Financial Services Council,
unpublished) and applying the 95.5% of funds with property assets within the portfolio.
The number of people with superannuation by State/ Territory was not available, and was
derived based on the number of people aged 18 or over in each State/ Territory of Australia
(as a representation of the number of people that may be expected to have super) (ABS
2014d; 2015d), as a proportion of total people aged 18 or over in Australia. This percent
was then applied to the total number of people with superannuation.
37
Economic Significance of the Property Industry to the Australian Economy
Final Report
THIS PAGE INTENTIONALLY LEFT BLANK
38
Economics, Planning & Development
Business Strategy & Finance
Community Research & Strategy
Design, Marketing & Advertising
Information & Knowledge Management
E [email protected]
W www.aecgroupltd.com
ABN 84 087 828 902