Resources sector of Australia

KEY DATA industry overview 
 
For Total selected industries, the aggregates of income and expenses increased by 0.6% and 0.3% respectively between 2008-09 and 2009-10, and IVA decreased by 0.2% over the same period. Operating profit before tax (OPBT) increased by 1.4%, and earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 4.2%. 
 
Twelve of the eighteen industry divisions that comprise the Total selected industries recorded increases in total income. Rental, hiring and real estate services recorded the largest percentage increase (12.1%), and Construction recorded the largest absolute increase ($15.8b). Mining recorded the largest percentage decrease (8.3%), and Manufacturing recorded the largest absolute decrease ($25.9b).  
 
The lower total income recorded by Mining and Manufacturing was driven by lower commodity prices during 2009-10.  
 
Eleven of the total eighteen selected industries recorded increases in total expenses. Electricity, gas, water and waste services recorded the largest percentage increase (7.9%). The industries with the largest absolute increases were Construction ($13.5b) and Retail trade ($13.3b). 
 
OPBT for Total selected industries increased by $3.9b between 2008-09 and 2009-10. Rental, hiring and real estate services recorded the largest absolute increase in OPBT ($11.1b). Mining recorded the largest absolute decrease ($11.9b), but was also the largest contributor to OPBT in 2009-10 (18.9%). 
 
EBITDA for Total selected industries decreased by $14.0b between 2008-09 and 2009-10. This decrease was driven by Mining, which recorded the largest absolute decrease of $15.8b.  
 
Employment for Total selected industries increased by 248,000 or 2.5%. The largest absolute increase (75,000) occurred in Accommodation and food services, followed by Professional, scientific and technical services (48,000). The largest contributor to employment was Retail trade (1.29m).  
 
 
REVISIONS 
 
Revisions have been made to incorporate the latest data relating to international merchandise trade and international trade in services:

• on a recorded trade basis, international merchandise exports and imports have been revised back to May 2011
• on a balance of payments basis,
• goods credits have been revised back to April 2011
• goods debits have been revised back to February 2011
• services credits have been revised back to September 2010
• services debits have been revised back to July 2010.

 
Table 17 summarises revisions to goods and services on a balance of payments basis, in original current price terms, since the last issue of this publication. In original terms, the revisions have:

• increased the surplus on goods and services for 2010-11 by $49m
• decreased the surplus on goods and services for the four months to October 2011 by $308m.

 
Seasonally adjusted and trend series have been revised due to the incorporation of these revisions and estimates for the latest month. 
 
 
VALUE ADJUSTMENTS 
 
Goods credits - Iron ore and coal

• for this issue, a negative adjustment of $75m has been applied to the 'metal ores and minerals' component
• no adjustments have been made to the 'coal, coke and briquettes' component.

 
Goods debits - Capital expenditure

• the balance of payments goods debits component 'capital goods n.e.s.' includes an estimate of expenditure on capital goods that have changed ownership but have not yet crossed the Customs frontier.

 
 
RELATED RELEASES 
 
For related recent releases, see the Related releases section. 
 
 
INQUIRIES 
 
For further information contact Selvi Sekhar on Canberra (02) 6252 5540 for Goods, and Lee Taylor on Canberra (02) 6252 6377 for Services. 

INDUSTRY ANALYSIS 
 
An analysis of performance by selected industries follows.  
 
 
Agriculture, forestry and fishing  
 
In 2009-10, Agriculture, forestry and fishing contributed 2.5% to total income, 2.5% to total expenses, and 2.5% to IVA for Total selected industries. 
 
Small businesses dominate Agriculture, forestry and fishing, contributing higher proportions of the industry's total income (81.9%), wages and salaries (63.1%) and employment (85.7%) than in any other industry. 
 
 
Mining  
 
Mining showed weaker profits in 2009-10, with OPBT decreasing $11.9b (18.8%), EBITDA decreasing $15.8b (21.5%) and IVA decreasing $19.1b (17.9%). The percentage decreases in these aggregates are the highest of all the Total selected industries. The Mining industry was impacted in 2009-10 by lower commodity prices, which was the primary driver in these items decreasing. 
 
Even with declining profits, Mining remains the largest contributor to OPBT (18.9%) and EBITDA (17.9%), but has dropped to be the second largest contributor to IVA (from 12.8% in 2008-09 to 10.6% in 2009-10 of Total selected industries).  
 
Depreciation and amortisation is a significant element of the cost structure of Mining, and represented 13.3% of its total expenses in 2009-10, the highest proportion of any selected industry. 
 
In 2009-10, Mining had the highest capital expenditure ($45.6b), highest wages and salaries per employee ($117,500), highest sales and service income per person employed ($1.06m) and profit margin (33.4%) of all the selected industries. 
 
 
Manufacturing  
 
In 2009-10, Manufacturing was the largest contributor to IVA, accounting for 11.6% of the Total selected industries IVA figure. 
 
Manufacturing accounted for 15.1% of total income for Total selected industries in 2009-10, the second largest contributor after Wholesale trade. 
 
 
Electricity, gas, water and waste services  
 
Large businesses in Electricity, gas, water and waste services dominate this industry, contributing more than 70% of its IVA, OPBT, and sales and service income. 
 
 
Construction  
 
In 2009-10, Construction showed the largest increase in absolute terms in EBITDA ($2.3b, or 7.9%) and IVA ($4.9b, or 9.8%) for Total selected industries. 
 
With 994,000 persons, Construction recorded the second largest employment of Total selected industries, after Retail trade. 
 
 
Wholesale trade  
 
Wholesale trade was the largest contributor of all selected industries to total income (15.9%) and sales and service income (16.7%).  
 
At 8.5%, the proportion of selected labour costs to total expenses in Wholesale trade in 2009-10 was the lowest of all Total selected industries. 
 
 
Retail trade  
 
Total income and total expenses in the Retail trade increased by 3.6% and 4.0% respectively between 2008-09 and 2009-10.  
 
With $358.2b of total income, Retail trade recorded the third largest total income of Total selected industries, after Wholesale trade and Manufacturing.  
 
With 1.29m persons, Retail trade recorded the largest employment of any of the selected industries. 
 
 
Accommodation and food services  
 
In 2009-10, Accommodation and food services showed the strongest increase in employment (9.2%). The industry has the lowest wages and salaries per person ($21,000). 
 
 
Transport, postal and warehousing  
 
The percentage of business in Transport, postal and warehousing which returned a profit was 81.4%, the highest proportion of any selected industry in 2009-10. 
 
 
Information media and telecommunications  
 
OPBT in Information, media and telecommunications showed the strongest growth of all selected industries in percentage terms, increasing by 97.3% ($5.5b) between 2008-09 and 2009-10. 
 
Depreciation and amortisation is a significant element of the cost structure of Information media and telecommunications, and represented 12.8% of its total expenses in 2009-10, the second highest proportion after Mining. 
 
Large businesses dominate Information media and telecommunications, contributing more than 70% of its IVA, total income, total expenses, and wages and salaries. 
 
 
Rental, hiring and real estate services  
 
In absolute terms, Rental, hiring and real estate services has shown the largest increase in OPBT ($11.1b) between 2008-09 and 2009-10. As a result of the increase in OPBT, the profit margin of this industry has increased from 15.2% in 2008-09 to 28.2% in 2009-10. 
 
Rental, hiring and real estate services had the second highest capital expenditure of all Total selected industries at $37.6b, behind Mining. 
 
In percentage terms, Rental, hiring and real estate services has the highest interest expenses of any industry, accounting for 18.5% of its total expenses. 
 
 
Professional, scientific and technical services  
 
Professional, scientific and technical services was the largest contributor of all selected industries to selected labour costs (13.0%).  
 
 
Education and training (private)  
 
In 2009-10, funding received from government for operational costs for Education and training (private) amounted to 36.8% of the industry's total income, the highest proportion of any selected industry. 
 
This industry had the highest ratio of wages and salaries to sales and service income (91.4%) of the selected industries, significantly higher than the second ranked industry by this measure, Health care and social assistance (private) (53.6%). 
 
 
Health care and social assistance (private)  
 
Of the selected industries, Health care and social assistance (private) was by far the largest recipient of funding from government for operational costs. In 2009-10 it received $18.9b, or 36.7% of all such funding paid to Total selected industries. This funding represented 23.0% of the total income of the industry. 
 
 
Other services  
 
Other services was heavily dominated by small businesses, which accounted for 76.2% of OPBT and 60.6% of IVA.