Budget 2013/14 Northern Territory Economy
Tabled paper 295
Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT
Tabled by David Tollner
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
Department of the Treasury and Finance
80 Retail and Wholesale Trade 2013-14 Budget clothing, footwear and personal accessories; and other retailing (including department stores). The ABS does not report international online retail data, while domestic online sales are incorporated into shop front sales or, in the absence of a physical shop front, in the other retailing category. Domestic online sales are attributed to the state in which the online retailer is based, regardless of where the buyer of the goods resides. This means that, due to the relatively low number of Territorybased online retailers, published retail trade data does not provide a complete representation of the level of spending on retail goods by Territorians. In July2012, the Commonwealth announced that, from November2013, the ABS will report national domestic online sales data on a monthly basis, while data for online purchases from international retailers will be published annually based on data provided by AustraliaPost and the Australian Customs and Border Protection Service. However, it is expected that this data will not be available at a state/territory level. Wholesale trade is the sale of new or used goods to businesses and institutional users, with the exception of government users, as government transactions are final. The Territory has a relatively small wholesale sector, with activity mainly in industrial storage and equipment, transport and food wholesaling. The ABS does not publish disaggregated data on wholesale trade by jurisdiction. Territory consumers generally spend a higher than average proportion of disposable income in most of the retail subcategories reported by the ABS due to the Territorys remoteness from major production centres, which results in relatively high freight costs and higher retail prices. Limited competition in the Territorys retail sector also contributes to higher prices. Contribution to the Economy In 201112, retail and wholesale trade accounted for 4.8percent of the Territorys gross state product (GSP). Of this proportion, retail trade accounted for 3.3percentage points while 1.5percentage points were attributed to wholesale trade. Over the same period, retail trades proportion of Australias gross domestic product (GDP) was 4.5per cent and wholesales was 4.3percent, with the two sectors combined accounting for 8.8percent of GDP. Compared with other jurisdictions, the Territorys wholesale sector contributes notably less to GSP (Chart 7.1). This is due mainly to the remoteness and small population of Territory centres, which tend to be unfavourable for many wholesale activities. As a result, a substantial amount of wholesale activity occurs interstate, with goods sourced directly from interstate suppliers.