Estimates of businesses by Commonwealth Electoral Division

Research Note Index

Research Note no. 20 2005–06

Estimates of businesses by Commonwealth Electoral Division
(ABS Business Register snapshot June 2004)

Guy Woods
Statistics Section
5 December 2005

Introduction

The Australian Bureau of Statistics (ABS) has taken a snapshot of its register of Australian businesses for June 2004.

Using the data from this source the Parliamentary Library has estimated the number of businesses by Commonwealth electoral division.

Business counts using ABN data

The ABS uses information from the Australian Taxation Office’s register of Australian Business Numbers (ABN), to build its own register of businesses, the ABS Business Register (ABSBR).

On the ABSBR the majority of businesses are simple in structure and equate to an ABN. However, where the ABN is not suitable for ABS statistical requirements (typically large, complex and diverse businesses), the ABS has adopted a model that creates and maintains statistical units for one or more business entities that can report employment or production data for similar economic activities.

The snapshot of the ABSBR includes all ABS maintained statistical units and ABNs that have at least one non-cancelled GST Payer, Income Tax Payer, Income Tax Instalment Payer or Income Tax Withholding tax role. Exceptions are those businesses that fall into the following categories: central bank, general government, non-profit institutional serving households, charitable institutions, social and sporting clubs, trade union and other associations, diplomatic or trade missions. The list also excludes categories referred to as rest of world, other unincorporated entities and other foreign government.

The snapshot provides data down to the postcode level, so it can be used to build regional profiles of businesses.

National profile in brief

The June 2004 snapshot reveals that there are just over three million businesses in Australia.

Table 1 shows that the majority of businesses are non-employing businesses or small businesses employing less than 20 persons. Non-employing businesses account for 72 per cent of total businesses and small employing businesses for 25 per cent. The ABS defines an employing business by whether or not a business is registered with the ATO to collect income tax on behalf of employees.⁽¹⁾

Table 1. Estimated percentage of businesses by size of business, June 2004 (a)
Regional Classification of electorates

	Employment Size Ranges
	0-19	Less than 100 (b)	20-199	200+	Total Employing	Non-employing	Total businesses
Rural	26.9	29.1	2.5	0.08	29.4	70.6	100
Provincial	25.6	27.9	2.6	0.11	28.3	71.7	100
Outer Metropolitan	24.7	26.8	2.3	0.12	27	72.9	100
Inner Metropolitan	23.7	26.3	2.8	0.26	27	73.2	100

Australia	25.0	27.4	2.6	0.16	27.8	72.2	100

(a) Parliamentary Library estimates derived from June 2004 ABSBR data.

(b) Parliamentary Library Estimates derived from June 2004 ABSBR data and 2001 ABS Small business estimates.

Source: ABS Business Register.

Of the employing businesses 90 per cent are small businesses and nine per cent are medium businesses (employing 20—199). Those businesses employing 200 or more persons account for about 0.6 per cent of employing businesses.

The counts of businesses released by the ABS in this snapshot do not provide any estimates on the number of businesses employing up to 100 persons. However, using ABS information on small business from 2001, the Parliamentary Library has estimated that in the June 2004 snapshot there are about 825 000 businesses employing up to 100 people.⁽²⁾ This is equal to about 99 per cent of all employing businesses and 28 per cent of total businesses.

According to the 2004 snapshot most businesses tend to be fairly localised, i.e. their operations are restricted to a single state. Only 39 000, or 1.2 per cent of total businesses, have operations in more than one state.

Big businesses (employing over 200) are most likely to have multi-state operations (36 per cent of this category). Only about one per cent of non-employing and small businesses have multi-state operations.

Businesses by electorate

Table 2 provides ranked estimates on the number of businesses by employment size in each electorate. This has been derived from postcode data. Where the postcode data have been suppressed for confidentiality reasons the Library has imputed a value (see explanatory note at end of table 2). The data at the postcode level are a snapshot of businesses at their main business address. Multi-site and multi-state businesses are only counted at the postcode where their main postal address can be found.

The largest concentration of businesses can be found in the electorate of Sydney. With over 84 000 businesses in the electorate, Sydney accounts for 3 per cent of all the businesses in Australia. In terms of big business, the electorate of Sydney accounts for nearly 12 per cent of all businesses employing over 200 people. Melbourne is the next biggest electorate in terms of businesses. It has over 58 000 businesses, which accounts for about two per cent of all businesses and about 6 per cent of all big business.

The electorate with the smallest number of businesses is the Northern Territory’s Lingiari. It has almost nine thousand businesses which is equal to about 0.3 per cent of all businesses.

In terms of regional differences there are some slight, but noticeable differences between city electorates and country electorates.

From table 1 it can be seen that, inner metropolitan electorates have the highest proportion of big businesses (0.26 per cent of total businesses) and the highest proportion of non-employing businesses (73.2 per cent of total businesses).

At the other geographic extreme, rural electorates have the highest proportion of small businesses (26.9 per cent of total businesses) and the highest proportion of businesses employing up to 100 (29 per cent of total businesses).

Sources:

Australian Bureau of Statistics, 2005, Australian Bureau of Statistics Business Register, June 2004, Cat no. 8161.0.55.001, ABS, Canberra.

Australian Bureau of Statistics 2005, Information Paper: Statistical View of Counts of Businesses in Australia, Cat no. 1862.0, ABS, Canberra.

Australian Bureau of Statistics 2002, Small Business in Australia, 2001, Cat no. 1321.0 ABS, Canberra.

A business may at some point in time have no employees, but because of its income tax withholding role be classified by the ABS as employing; hence the category range 0-19.
In 2001 the majority (91.1 per cent) of businesses employing 20—199 were in the category 20— 99. Small Business in Australia, 2001, ABS Cat. No. 1321.0

Table 2. Estimated number of businesses by size ranked by electorate, June 2004 (a)

		Employment Size Ranges
		0-19	Less than 100 (b)	20-199	200+	Total employing	Non-employing	Total businesses
Sydney (NSW)	ALP	21 243	24 471	3 547	572	25 362	58 868	84 230
Melbourne (VIC)	ALP	15 021	17 278	2 480	328	17 829	40 376	58 205
Adelaide (SA)	ALP	9 793	11 114	1 452	130	11 375	34 306	45 681
North Sydney (NSW)	LIB	10 936	12 100	1 279	156	12 371	31 909	44 280
Melbourne Ports (VIC)	ALP	9 421	10 647	1 347	167	10 936	31 159	42 095
Wentworth (NSW)	LIB	7 727	8 251	576	37	8 341	29 437	37 778
Brisbane (QLD)	ALP	10 106	11 576	1 615	163	11 884	25 569	37 452
Curtin (WA)	LIB	8 268	9 149	968	66	9 302	26 886	36 188
Moncrieff (QLD)	LIB	7 884	8 754	956	46	8 886	25 544	34 431
Higgins (VIC)	LIB	7 556	8 160	664	65	8 284	25 012	33 296
Bradfield (NSW)	LIB	7 932	8 468	589	70	8 590	23 417	32 007
Kooyong (VIC)	LIB	7 264	7 795	584	40	7 888	23 528	31 416
Warringah (NSW)	LIB	6 928	7 408	528	27	7 484	22 739	30 223
Perth (WA)	ALP	7 564	8 592	1 130	112	8 807	21 377	30 184
Mackellar (NSW)	LIB	7 105	7 563	503	34	7 641	20 409	28 050
Goldstein (VIC)	LIB	6 646	7 094	492	26	7 164	20 378	27 542
Maranoa (QLD)	NP	7 245	7 826	638	24	7 907	18 647	26 554
Lowe (NSW)	ALP	6 324	6 795	518	51	6 894	19 221	26 115
O'Connor (WA)	LIB	7 270	7 784	565	11	7 846	17 285	25 131
Mitchell (NSW)	LIB	6 840	7 286	490	32	7 361	16 910	24 271
Grayndler (NSW)	ALP	5 654	6 195	594	29	6 277	17 954	24 232
Barker (SA)	LIB	7 468	8 201	805	30	8 303	15 509	23 812
Leichhardt (QLD)	LIB	5 564	6 275	781	37	6 383	17 350	23 733
Griffith (QLD)	ALP	5 694	6 280	644	54	6 392	17 163	23 555
Fadden (QLD)	LIB	5 374	5 876	552	28	5 955	17 493	23 448
Fairfax (QLD)	LIB	5 719	6 175	501	14	6 234	16 996	23 230
Parramatta (NSW)	ALP	5 828	6 401	630	75	6 533	16 666	23 199
Ryan (QLD)	LIB	5 298	5 739	485	20	5 803	17 258	23 061
Mallee (VIC)	NP	7 473	8 153	747	31	8 252	14 777	23 029
Fisher (QLD)	LIB	5 598	6 017	460	18	6 075	16 767	22 842
Gwydir (NSW)	NP	6 678	7 149	518	9	7 205	15 620	22 825
Kingsford Smith (NSW)	ALP	5 076	5 599	575	59	5 710	16 906	22 616
Berowra (NSW)	LIB	6 025	6 368	377	18	6 419	16 014	22 434
Menzies (VIC)	LIB	5 331	5 632	331	19	5 681	16 456	22 137
McPherson (QLD)	LIB	4 980	5 337	392	15	5 387	16 730	22 116
Swan (WA)	ALP	5 011	5 751	813	50	5 874	16 008	21 883
Farrer (NSW)	LIB	6 205	6 803	657	19	6 881	14 880	21 761
Fraser (ACT)	ALP	5 033	5 579	600	29	5 662	15 855	21 517
McEwen (VIC)	LIB	5 443	5 769	358	7	5 808	15 635	21 443
Dawson (QLD)	NP	5 696	6 321	687	33	6 415	15 019	21 435
Cook (NSW)	LIB	5 467	5 883	457	20	5 943	15 112	21 055
Barton (NSW)	ALP	4 701	5 008	337	20	5 057	15 799	20 856
Murray (VIC)	LIB	5 594	6 132	591	20	6 206	14 536	20 742
Hume (NSW)	LIB	6 074	6 472	437	14	6 525	14 188	20 713
Chisholm (VIC)	ALP	5 354	5 921	623	50	6 027	14 682	20 709
Kennedy (QLD)	IND	5 453	6 059	666	24	6 143	14 483	20 626
Eden-Monaro (NSW)	LIB	5 582	6 014	475	13	6 070	14 453	20 523
Stirling (WA)	LIB	4 446	4 959	564	33	5 043	15 469	20 513
Watson (NSW)	ALP	4 384	4 655	298	13	4 695	15 787	20 482
Riverina (NSW)	NP	6 000	6 583	641	22	6 663	13 762	20 425
Bennelong (NSW)	LIB	5 042	5 472	473	76	5 591	14 813	20 405
Wannon (VIC)	LIB	6 399	6 859	506	11	6 916	13 443	20 359
Moreton (QLD)	LIB	5 076	5 688	672	42	5 790	14 261	20 051
Lilley (QLD)	ALP	4 767	5 410	707	46	5 521	14 430	19 950
Forrest (WA)	LIB	4 830	5 386	611	15	5 456	14 434	19 890
Bruce (VIC)	ALP	5 186	5 915	801	69	6 056	13 793	19 849
Sturt (SA)	LIB	3 693	3 973	308	11	4 012	15 758	19 769
Forde (QLD)	LIB	4 539	4 918	416	13	4 968	14 676	19 644
New England (NSW)	IND	5 701	6 089	426	15	6 141	13 476	19 617
Canberra (ACT)	ALP	4 586	5 007	463	19	5 069	14 327	19 395
Richmond (NSW)	ALP	4 388	4 716	360	14	4 762	14 559	19 321
Jagajaga (VIC)	ALP	5 015	5 347	365	21	5 401	13 869	19 270
Indi (VIC)	LIB	5 183	5 646	509	16	5 708	13 521	19 229
Fremantle (WA)	ALP	4 133	4 606	520	25	4 677	14 437	19 114
Dunkley (VIC)	LIB	4 720	5 062	376	13	5 109	14 004	19 113
Reid (NSW)	ALP	4 598	5 172	631	51	5 279	13 760	19 040
Mayo (SA)	LIB	4 270	4 554	312	4	4 586	14 428	19 015
Tangney (WA)	LIB	4 168	4 533	401	20	4 589	14 314	18 903
Rankin (QLD)	ALP	4 485	4 899	455	20	4 960	13 863	18 823
Isaacs (VIC)	ALP	4 844	5 443	658	36	5 538	13 155	18 693
Grey (SA)	LIB	6 021	6 360	373	9	6 403	12 247	18 650
Flinders (VIC)	LIB	4 600	4 896	325	4	4 929	13 659	18 588
Macquarie (NSW)	LIB	4 827	5 152	357	10	5 194	13 266	18 460
Kalgoorlie (WA)	LIB	4 741	5 310	625	21	5 387	13 068	18 455
Casey (VIC)	LIB	4 739	5 096	392	16	5 147	13 273	18 420
Parkes (NSW)	NP	5 821	6 261	483	16	6 319	12 000	18 319
Pearce (WA)	LIB	4 108	4 393	313	8	4 428	13 876	18 305
Prospect (NSW)	ALP	4 921	5 415	543	42	5 506	12 795	18 301
Deakin (VIC)	LIB	4 755	5 199	488	31	5 274	13 022	18 296
Groom (QLD)	LIB	4 542	5 019	524	20	5 086	12 907	17 992
Blaxland (NSW)	ALP	4 676	5 046	407	36	5 119	12 645	17 764
Bowman (QLD)	LIB	4 485	4 814	361	14	4 861	12 877	17 738
Aston (VIC)	LIB	4 735	5 216	529	27	5 291	12 334	17 626

Table 2. continued, Estimated number of businesses by size ranked by electorate, June 2004 (a)

		Employment Size Ranges
		0-19	Less than 100 (b)	20-199	200+	Total employing	Non-employing	Total businesses
McMillan (VIC)	LIB	4 365	4 653	317	15	4 696	12 913	17 610
La Trobe (VIC)	LIB	4 484	4 712	250	12	4 746	12 721	17 467
Calare (NSW)	IND	4 950	5 341	430	16	5 396	12 040	17 436
Lyne (NSW)	NP	4 300	4 600	330	13	4 643	12 662	17 305
Cowper (NSW)	NP	4 357	4 673	347	6	4 710	12 535	17 244
Cowan (WA)	ALP	3 896	4 309	454	13	4 363	12 848	17 211
Newcastle (NSW)	ALP	4 639	5 230	649	46	5 334	11 731	17 065
Hotham (VIC)	ALP	4 455	4 974	570	45	5 070	11 924	16 994
Page (NSW)	NP	3 983	4 297	345	16	4 344	12 573	16 917
Bonner (QLD)	LIB	4 049	4 455	446	18	4 514	12 390	16 904
Hinkler (QLD)	NP	4 442	4 954	563	33	5 039	11 852	16 891
Hindmarsh (SA)	ALP	3 640	4 074	477	31	4 148	12 739	16 887
Greenway (NSW)	LIB	4 442	4 850	448	31	4 921	11 920	16 840
Wills (VIC)	ALP	3 961	4 280	350	15	4 326	12 475	16 801
Gellibrand (VIC)	ALP	4 193	4 648	500	45	4 738	12 038	16 776
Gippsland (VIC)	NP	4 565	4 943	415	17	4 997	11 775	16 772
Corangamite (VIC)	LIB	4 157	4 435	306	11	4 474	12 242	16 716
Werriwa (NSW)	ALP	4 264	4 597	366	24	4 654	11 640	16 294
Hughes (NSW)	LIB	4 269	4 484	236	13	4 519	11 765	16 284
Gilmore (NSW)	LIB	4 424	4 725	331	9	4 764	11 439	16 204
Dobell (NSW)	LIB	4 152	4 470	349	14	4 515	11 660	16 176
Robertson (NSW)	LIB	4 106	4 432	358	9	4 473	11 698	16 171
Maribyrnong (VIC)	ALP	4 285	4 604	350	18	4 653	11 516	16 169
Moore (WA)	LIB	3 168	3 374	226	14	3 409	12 725	16 134
Paterson (NSW)	LIB	4 150	4 478	360	9	4 519	11 594	16 113
Boothby (SA)	LIB	3 262	3 571	340	13	3 615	12 420	16 035
Banks (NSW)	ALP	4 108	4 509	441	25	4 574	11 431	16 004
Batman (VIC)	ALP	3 742	4 133	430	24	4 197	11 756	15 953
Ballarat (VIC)	ALP	4 591	4 944	388	16	4 995	10 905	15 900
Capricornia (QLD)	ALP	4 224	4 641	458	14	4 695	11 157	15 853
Corio (VIC)	ALP	4 157	4 601	488	23	4 668	11 162	15 830
Bendigo (VIC)	ALP	4 385	4 749	400	15	4 799	11 005	15 804
Blair (QLD)	LIB	3 798	4 139	375	26	4 199	11 365	15 565
Lindsay (NSW)	LIB	4 125	4 423	328	9	4 462	11 057	15 519
Hasluck (WA)	LIB	3 293	3 598	335	15	3 643	11 832	15 476
Dickson (QLD)	LIB	3 905	4 174	296	12	4 213	10 945	15 158
Wide Bay (QLD)	NP	4 107	4 419	343	15	4 465	10 674	15 139
Canning (WA)	LIB	3 140	3 406	292	12	3 444	11 506	14 951
Cunningham (NSW)	ALP	4 005	4 336	364	13	4 382	10 568	14 949
Calwell (VIC)	ALP	3 913	4 400	535	42	4 490	10 408	14 897
Herbert (QLD)	LIB	3 795	4 252	502	16	4 312	10 514	14 826
Longman (QLD)	LIB	3 794	4 088	323	13	4 130	10 536	14 666
Port Adelaide (SA)	ALP	3 284	3 834	604	35	3 923	10 692	14 615
Macarthur (NSW)	LIB	4 015	4 265	275	13	4 303	10 298	14 601
Fowler (NSW)	ALP	3 714	3 958	268	16	3 998	10 282	14 280
Holt (VIC)	ALP	3 413	3 692	307	15	3 736	10 454	14 189
Petrie (QLD)	LIB	3 425	3 694	296	11	3 731	10 167	13 898
Oxley (QLD)	ALP	3 174	3 598	466	27	3 667	9 707	13 375
Hunter (NSW)	ALP	3 782	4 175	432	19	4 233	9 087	13 320
Lalor (VIC)	ALP	3 488	3 762	301	15	3 804	9 463	13 267
Wakefield (SA)	LIB	3 045	3 281	259	5	3 309	9 765	13 074
Solomon (NT)	CLP	2 638	3 059	463	18	3 119	9 953	13 072
Scullin (VIC)	ALP	3 501	3 808	337	14	3 852	9 169	13 021
Kingston (SA)	LIB	2 592	2 800	229	9	2 831	10 136	12 967
Denison (TAS)	ALP	3 432	3 881	493	32	3 958	8 812	12 770
Brand (WA)	ALP	2 554	2 785	254	6	2 814	9 814	12 628
Makin (SA)	LIB	2 595	2 867	299	11	2 904	9 427	12 332
Shortland (NSW)	ALP	3 273	3 539	292	7	3 572	8 650	12 222
Gorton (VIC)	ALP	2 864	3 021	172	5	3 041	9 039	12 080
Chifley (NSW)	ALP	2 905	3 167	288	19	3 212	8 812	12 024
Charlton (NSW)	ALP	3 380	3 669	318	12	3 709	8 147	11 857
Bass (TAS)	LIB	3 045	3 380	368	17	3 431	8 042	11 473
Braddon (TAS)	LIB	2 896	3 176	308	10	3 214	7 123	10 337
Lyons (TAS)	ALP	2 560	2 796	259	3	2 822	7 444	10 266
Throsby (NSW)	ALP	2 821	3 049	250	13	3 084	7 109	10 194
Franklin (TAS)	ALP	2 045	2 231	204	2	2 251	6 944	9 195
Lingiari (NT)	ALP	2 010	2 274	290	9	2 308	6 600	8 909
AUSTRALIA		754 504	825 171	77 656	4 918	837 078	2 178 240	3 015 318

(a) Parliamentary Library estimates derived from June 2004 ABSBR data

(b) Parliamentary Library Estimates derived from June 2004 ABSBR data and 2001 ABS Small business estimates

Source: ABS Business Register

Explanatory Note: The ABS has prepared counts of businesses by employment size by postcode. These counts at the postcode level were then aggregated by the Parliamentary Library to electoral divisions using a postcode to electorate concordance. For confidentiality reasons, the ABS sometimes had to suppress the value of individual cells. Where this occurred, it was necessary for the Parliamentary Library to impute a value for the cell. As far as possible, a value was imputed by maintaining relativities with all Australia data. For example, if the total number of businesses was known for a particular postcode district, but the number of employing and non-employing businesses had been suppressed, then values were imputed based on the relative number of employing and non-employing businesses that existed in all Australia.

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