Regional Development Australia Gold Coast Inc

Regional Development Australia Gold Coast Inc. Analysis of the Gold Coast Long Distance Commuter Workforce August 2013 Contents The contacts at KPM...
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Regional Development Australia Gold Coast Inc. Analysis of the Gold Coast Long Distance Commuter Workforce

August 2013

Contents The contacts at KPMG

Page

in connection with this Report are:

Page

Disclaimer

2

Regional profiles

KPMG Demographics

Foreword

4

 Gold Coast (primary)

21

Partner, Melbourne

Executive Summary

6

 Gold Coast (primary and secondary)

25

Background and approach

9

 Brisbane

28

Bernard Salt

Tel:

03 9288 5047

Fax:

03 9288 5162

[email protected]

Geography

11

 Mackay (primary)

32

The Mining industry and LDC workers

15

 Mackay (primary and secondary)

36

Australia’s top resident LDC cities

17

 Newcastle

39

Comparison of study region workforces

19

Appendices

43

Ben Willison KPMG Demographics Senior Consultant, Melbourne Tel:

03 9838 4659

Fax:

03 9288 5162

[email protected]

© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

1

Disclaimer

2

Disclaimer

Inherent Limitations ■ This Report has been prepared as outlined in the engagement contract signed 28 May 2013. The services provided in connection with this engagement comprise an advisory engagement, which is not subject to assurance or other standards issued by the Australian Auditing and Assurance Standards Board and, consequently no opinions or conclusions intended to convey assurance have been expressed. ■ No warranty of completeness, accuracy or reliability is given in relation to the statements and representations made by, and the information and documentation provided by, Regional Development Australia Gold Coast Inc. employees or management consulted as part of the process. ■ KPMG have indicated within this Report the sources of the information provided. We have not sought to independently verify those sources unless otherwise noted within the Report. ■ KPMG is under no obligation in any circumstance to update this Report, in either oral or written form, for events occurring after the Report has been issued in final form. ■ The findings in this Report have been formed on the above basis.

Third Party Reliance ■ This Report is solely for the purpose set out in the Scope Section of the engagement contract signed 28 May 2013 and for Regional Development Australia Gold Coast Inc.’s information and is not to be used for any other purpose or distributed to any other party without KPMG’s prior written consent. ■ This Report has been prepared at the request of Regional Development Australia Gold Coast Inc. in accordance with the terms of KPMG’s engagement contract signed 28 May 2013. Other than our responsibility to Regional Development Australia Gold Coast Inc., neither KPMG nor any member or employee of KPMG undertakes responsibility arising in any way from reliance placed by a third party on this Report. Any reliance placed is that party's sole responsibility.

■ We understand that this Report will be made available on Regional Development Australia Gold Coast Inc.’s website. Any third party who accesses this Report is not a party to our engagement contract with Regional Development Australia Gold Coast Inc. and, accordingly, may not place reliance on this Report. ■ KPMG shall not be liable for any losses, claims, expenses, actions, demands, damages, liabilities or any other proceedings arising out of any reliance by any third party on Analysis of the Gold Coast Long Distance Commuter Workforce.

Reliance on Projections ■ Any projections that have been used in this Report are based on assumptions about circumstances and events for which there is not yet appropriately reliable data available. As a result, we cannot provide any assurance that these projections will be, or have been, achieved. ■ Any such projections should not be regarded as a representation or warranty by or on behalf of KPMG or any other person that such projections or their underlying assumptions will be, or have been, achieved. Opinions offered constitute our judgement and are subject to change without notice, as are statements about market trends, which are based on market conditions.

Electronic distribution ■ Responsibility for the security of any electronic distribution of this report remains the responsibility of Regional Development Australia Gold Coast Inc. and KPMG accepts no liability if the report is, or has been, altered in any way by any person.

© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

3

Foreword

4

Foreword The natural synergy of the Gold Coast and FIFO

Ask an Australian to name a major city that the Australian nation created in the 20th Century and most will say Canberra. And of course this is correct. One hundred years after construction began on Canberra and the urban mass, even adding in the pre-existing rural town of Queanbeyan, is 370,000. What many Australians don’t seem to appreciate is that 60 years after the 1954 Census, the Gold Coast urban mass, adding in the Tweed bit, now contains 590,000 residents. Canberra has been planned, feted and favoured by successive Federal governments. The Gold Coast grew out of free enterprise and the sheer determination of the Australian people to create a lifestyle environment. In the 1950s there was no ‘Gold Coast’; what there was, was a loose collection of 20,000 residents in a number of seaside villages spread along a 50 km coastline between Southport and Coolangatta. Initially ‘the Coast’ gathered momentum as a retirement destination but as the city swelled beyond the 250,000-mark and then beyond the half-a-million mark it became apparent that an urban mass of this size required more than ‘retirement’ to prosper and to develop. The tourism industry flourished as did construction and retail and indeed the concept of commuting to Brisbane. A new railway link completed in the late 1990s together with an upgrade of the Pacific Highway at about the same time facilitated the inter-development of the Brisbane and the Gold Coast job markets. Indeed by the time of the 2011 Census, the Gold Coast-to-Brisbane corridor had emerged as the leading inter-city commuting flow in Australia with 26,000 workers making the trip daily. The second biggest flow of commuters at this time was 18,000 workers travelling from Wollongong to Sydney. The fact that this number of workers is prepared to commute every day to another city to work says something about the values and priorities of Australian workers and also about the Gold Coast.

The modern incarnation of inter-city commuting are the fly-in fly-out (or FIFO) workers which by all accounts now number in excess of 100,000 nationally including 8,000 who live on the Gold Coast. The Gold Coast was created by the lifestyle-will of the Australian people. The residents and the workers of the Gold Coast have demonstrated an inordinate, and indeed a nationally unique, predisposition to place the Coast’s lifestyle ahead of the convenience of commuting. If ever there was a place and a people more predisposed to the idea of FIFO commuting it is the people and the residents of the Gold Coast. Rightly or wrongly Coasters are fiercely loyal to their city and to their way of life. And perhaps as an indication of future trends this lifestyle is becoming increasingly attractive to others and which is why the Gold Coast is one of the fastest growing places in Australia. And it is also why the Gold Coast-to-Brisbane corridor is this nation’s biggest inter-city commuting flow. Coasters love their city. They love the lifestyle. They are prepared to commute daily to Brisbane in record numbers to participate in this lifestyle. The idea of commuting FIFO fashion once or twice a month to a mining destination is entirely consistent with the values and the behaviour of this community. If I had to pick a community most suited to the concept of pursuing lifestyle in one location and work opportunities in another, then that community has to be, and frankly probably has been for two generations, the Australian Gold Coast.

Bernard Salt KPMG Partner

Put bluntly the Gold Coast must be a mightily attractive lifestyle residential location to support an inter-city commuting lifestyle at this scale. This flow also reflects Australians’ ingrained determination to put the benefits of a contextual lifestyle (on the Coast) ahead of the short-term convenience of a more modest commute.

© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

5

Executive Summary

6

Executive Summary The following is a list of the most salient points arising from this study. 1

Employment in the Mining industry in QLD has hit a record high of 76K in May 2013 after experiencing three steady quarters of growth. This is in contrast to the trend experienced in the Mining industry nationally which declined 16K workers over the 12 months to May 2013. QLD is the only State that has recorded consistent and steady growth in Mining industry employment since August 2012.

5

The Mackay (primary + secondary) resident LDC workforce was 5.5K in 2011, increasing by 37% from 4.0K in 2006. The resident LDC workforce of Gold Coast (primary) was therefore 22% larger than Mackay (primary + secondary) in 2011, whereas it was 13% smaller in 2006.

2

Between 2006 and 2011, the Australian workforce increased by 10%, from 9.1M to 10.1M. Over the same period the nation’s Long Distance Commuter (LDC) workforce increased by 37%, from 156K in 2006 to 214K in 2011. Thus the propensity for Australian workers to utilise LDC work practices changed from 1.7% in 2006 to 2.1% in 2011 which, although seemingly only a marginal shift, was not uniform across all parts of Australia.

6

Of the study regions Gold Coast experienced the second largest increase between 2006 and 2011 in the propensity for workers to undertake LDC work practices (1.0 percentage point – from 1.7% to 2.7%). In fact across all study regions: Gold Coast, Brisbane, Mackay and Newcastle, the rates of growth of resident LDC workers outstripped the rates of growth of their total workforces. Mackay experienced the largest propensity increase between 2006 and 2011 at 1.2 percentage points (from 8.3% to 9.6%), followed by Gold Coast, then by Brisbane with a corresponding increase of 0.3 percentage points (from 1.1% to 1.4%) and Newcastle with virtually no change (from 2.3% to 2.4%).

3

The Gold Coast (primary) region was home to 6.7K LDC workers in 2011, as a subset of the region’s overall workforce of 254K. Adelaide had a resident LDC workforce of 6.8K in 2011 with a workforce of 548K. Interestingly Gold Coast is able to support a resident LDC workforce, the same size as Adelaide’s, with less than half the total workforce.

7

Bowen Basin was the dominant regional destination for LDC workers residing in Gold Coast, Brisbane and Mackay in 2011. Each city of residence experienced rapid growth in LDC travelling to Bowen Basin for work between 2006 and 2011. LDC workers travelling from Gold Coast (primary + secondary) to Bowen Basin grew 409% over the period to reach 0.6K workers in 2011. LDC workers on the corresponding commute from Brisbane grew 152% over the period to reach 1.7K workers in 2011 and from Mackay (primary + secondary) grew 81% to reach 4.4K workers.

4

Gold Coast (primary) experienced a rapid 92% growth from 3.5K to reach 6.7K LDC workers over the 2006 to 2011 period. This compares to Brisbane’s resident LDC workforce which increased by 49% over the same period to reach 13.8K. Thus in 2006 Gold Coast’s LDC workforce was roughly one-third the size of Brisbane’s 9.3K resident LDC workers, while in 2011 Gold Coast’s resident LDC workforce was roughly half the size of Brisbane’s.

8

The growth in LDC workers residing in Gold Coast (primary + secondary) and travelling to the Bowen Basin was roughly 45% the size of Brisbane’s corresponding growth between 2006 and 2011. The Gold Coast increase was 0.5K workers to Brisbane’s 1.1K workers. Similarly Gold Coast (primary + secondary) reported 35% of Brisbane’s increase in LDC workers travelling to Surat Basin between 2006 and 2011, an additional 0.1K workers (to reach 0.3K) and 0.4K workers (to reach 1.1K) respectively.

© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

7

Executive Summary The following is a list of the most salient points arising from this study. 9

The Gold Coast (primary + secondary) to Pilbara worker route increased 674% (to 0.3K workers) in the five years to 2011, whilst the Brisbane to Pilbara worker route increased 425% (to 0.5K workers) over the same period. This is due to strong demand for labour in the Pilbara and the willingness with which workers are trading off short work travel distances with their desire to live in a lifestyle destination.

10

Roughly one-third of LDC workers residing in Gold Coast (primary) were employed in the Mining and Construction industries in 2011, which is consistent with the national LDC worker profile. In 2006 these two industries represented only 22% of LDC workers residing in Gold Coast (primary) indicating a significant shift over the 2006 to 2011 period and reflective of the work choices made by Gold Coast residents.

11

Sydney factored highly as a place of work for LDC residing in Gold Coast, Brisbane and Newcastle in both 2006 and 2011 highlighting the consistent pulling power of the Sydney economy to attract skilled workers from other parts of Australia. Transport, Postal and Warehousing was the largest industry of employment for the combined LDC workers commuting to Sydney from Gold Coast, Brisbane and Newcastle in 2011.

© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

8

Background and approach

9

Background and approach

Background

Approach

Regional Development Australia Gold Coast Inc. (RDA) is a not-for-profit, communitybased organisation, whose main role is to support regional planning in the Gold Coast City by identifying and acting on critical economic, social and environmental issues.

The approach to this study is outlined below:

RDA is looking to further understand the level of engagement by the Gold Coast regional workforce in employment in areas outside of their local area, with a focus on those people who travel long distances to their place of work. RDA has approached KPMG to provide a demographic analysis of the Long Distance Commuter (LDC) workforce to address this area of interest. This data and its analysis will provide RDA and other stakeholders with an evidence base to assist in strategic planning decisions. This project was jointly funded by RDA, Gold Coast City Council and Gold Coast Airport.

1.

In consultation with RDA, KPMG has defined four study regions: Gold Coast, Brisbane, Mackay and Newcastle. The Gold Coast and Mackay regions have been further broken down into a primary and secondary geographic area.

2.

Using Australian Bureau of Statistics (ABS) Census data, KPMG has analysed the size and distribution of the LDC workforce residing in the Gold Coast as at the 2006 and 2011 Censuses. For this study, an LDC is defined as a person who travels 100km or more from their place of usual residence to their place of work. The Census data provides a snapshot of the LDC workforce (after additional calculations are made) in the week prior to the 2006 Census (conducted 8 August 2006) and the week prior to the 2011 Census (conducted 9 August 2011).

3.

The LDC workforce living in the Gold Coast has been broken down by industry of employment (ANZSIC 1-digit) so as to better understand workforce commuter trends and how they have changed over time.

4.

The Gold Coast LDC workforce has been benchmarked against the LDC workforces of Brisbane, Mackay and Newcastle to provide a frame of reference and scale for interpretation of LDC workforce trends and how they differ across geographies, industries, destinations and over time.

Source: KPMG Demographics, RDA, Gold Coast City Council and Gold Coast Airport © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

10

Geography

11

Geography of Australia's defined regions

Region type

Region name

Study Region

Gold Coast

Brisbane

Mackay

Newcastle

Capital City

Sydney

Melbourne

Perth

Adelaide

Hobart

Darwin

Canberra

Regional City

Wollongong

AlburyWodonga

Geelong

Launceston

NowraBomaderry

Lismore

Coffs Harbour

Port Macquarie

Tamworth

Dubbo

Wagga Wagga

Bathurst

Orange

Warrnambool

Ballarat

Bendigo

Shepparton

Latrobe Valley

Mildura

Mandurah

Bunbury

Geraldton

BurnieDevonport

Sunshine Coast

Townsville

Cairns

Bundaberg

Hervey Bay

Rockhampton

Gladstone

Bowen Basin

Galilee Basin

Surat Basin

Pilbara

Hunter Valley

KalgoorlieBoulder

North-West QLD

Central SA

Mackay

North-West QLD Pilbara

Bowen Basin Galilee Basin

Central West

Brisbane Surat Basin

Central SA

Mining Region

Balance

Hunter Valley

Gold Coast

Newcastle

Central West Off-shore / Migratory

KalgoorlieBoulder

Off-shore / MigratoryNSW

Off-shore / Migratory-VIC

Off-shore / Migratory-QLD

Off-shore / Migratory-WA

Off-shore / Migratory-SA

Off-shore / Migratory-TAS

Off-shore / Migratory-NT

Off-shore / MigratoryOther Territory

Balance-NSW

Balance-VIC

Balance-QLD

Balance-WA

Balance-SA

Balance-TAS

Balance-NT

Balance-ACT

Balance-Other Territory

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics

Capital Cities

Mining Regions

Regional Cities

Study Regions

Balance

500km

1,000km

Off-shore/Migratory (Not pictured)

These regions were defined to understand the commuting characteristics of Australia’s LDC workforce. Australia has been broken up into 67 regions and six region types: Study Region, Capital City, Regional City, Mining Region, Off-shore/Migratory or Balance Region as per the table provided to the left. This study identifies LDC worker flows between the Study Regions as a place of residence and other parts of Australia as a place of work. Capital Cities use Statistical Division boundaries whilst Regional Cities use Statistical District boundaries as per the Australian Standard Geographic Classification (ASGC) 2011. Balance Regions are defined as those regions in each State and Territory not defined as part of another region type.

Note: See Appendix A for a definition of Mining regions and see Pages 13 and 14 for a definition of Study Regions

© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

0km

12

Definition of the Gold Coast and Brisbane study regions For the purposes of this report, the Gold Coast study region has been divided into two areas: Gold Coast primary and Gold Coast secondary. This is to reflect both the official boundary of the Gold Coast and a wider market extending beyond the ASGC 2011 Statistical District definition of Gold Coast in which persons may choose to utilise the Gold Coast Airport for LDC activities – this is

merely indicative and is not thought to represent the precise Gold Coast Airport market. The reason airports are considered is because they serve as key transport hubs for LDC workers across Australia. Throughout this report LDC worker figures will be provided for both Gold Coast (primary) and Gold Coast (primary & secondary) regions. Note that distances are provided for context only.

Boundaries of Gold Coast (primary) and Brisbane

Boundaries of Gold Coast (primary & secondary) and Brisbane

Caloundra

Caloundra

Kilcoy

Kilcoy

Brisbane Statistical Division

Redcliffe

Redcliffe

CBD

CBD

Brisbane

Ipswich

Ipswich

Gold Coast (primary)

Beenleigh

Beenleigh

Gold Coast (secondary) Airport Boonah

Beaudesert

Boonah

Southport

Beaudesert

Southport

Tweed Heads

QLD

QLD NSW

Tweed Heads

NSW

Murwillumbah

Gold Coast Statistical District

Note: Regions are defined using ASGC 2011

Byron Bay

Murwillumbah Comprises: Tweed – Pt B and Byron SLAs

Comprises: Beaudesert and Tamborine-Canungra SLAs in Scenic Rim, and Guanaba-Springbrook SLA

Lismore

Byron Bay Lismore

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

13

Definition of the Mackay and Newcastle study regions Throughout this report, figures relating to Mackay will be analysed as Mackay (primary) and Mackay (primary & secondary). As per the Gold Coast, this is to reflect both the official boundary of Mackay and a wider market extending beyond the ASGC 2011 Statistical District definition of

Mackay in which persons may choose to utilise the Mackay Airport for LDC activities – this is merely indicative and is not thought to represent the precise Mackay Airport market. Note that distances are provided for context only.

Boundaries of Mackay (primary & secondary)

Boundaries of Newcastle

Proserpine Comprises: Mackay – Pt B, Mackay – Mirani and Mackay – Sarina SLAs Dungog

Bloomsbury Yalboroo Singleton

Mackay

Pinnacle

Mackay Statistical District

Maitland

Newcastle Statistical District

Medowie

Nelson Bay

Cessnock

Glenden Newcastle Sarina

Nebo Cooranbong

Newcastle Mackay (primary) Mackay (secondary) Note: Regions are defined using ASGC 2011

Airport

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

14

The Mining industry and LDC workers

15

The Mining industry and LDC workers As seen in the chart to the left, the Mining industry ranked as the largest industry of employment for LDC workers in 2011 with 21% of the total, followed by Construction with 13%. It is evident that many LDC workers citing Construction as their industry of employment were working on the construction of mine sites, based on a destination analysis, although certainly not all LDC workers employed in Construction. For the purposes of the following analysis, it can be concluded that trends experienced in the Mining industry would be correlated with (not necessarily causal of) those in the LDC worker market.

25% 20% 15% 10% 5% 0%

As at May 2013, 261,117 workers were employed in the Mining industry with WA, QLD and NSW making up 86% of this. Over the seven years to May 2013, employment in the Mining industry has roughly doubled from 133,912 across the nation and despite experiencing peaks and troughs has largely been on an upwards trend. When this same period is broken down by State, it is evident that trends experienced at the national level closely mirror trends in WA, whereas QLD and NSW trends show less variation.

Mining industry employment by State, May 2013

Quarterly Mining industry employment by State, May 2006 to May 2013 140

WA 40%

NSW 17%

QLD 29%

Some 86% of Australia’s workers employed in the Mining industry in May 2013 were in WA, QLD and NSW.

Persons employed ('000) - States only

Other 14%

120 100

280 QLD WA NSW Australia Other

240 Australia 200 WA

Last 12 months

80

160 QLD

60

120 NSW

40 20

Other

0

80 40 0

Persons employed ('000) - Australia

Proportion of regions total LDC workers

Australia’s LDC workers by industry of employment in 2011

Employment in the Mining industry peaked in May 2012 at 277,060 and has since experienced a marginal decline over the last 12 months. Whilst Australia’s decline of 15,943 workers in the Mining industry over the May 2012 to May 2013 period bucks the prior six year upwards trend, this is not true across all the major Mining States. Mining industry employment in WA peaked at 117,612 in August 2012 but has since shed 13,816 workers to May 2013 and is a major component of the nation’s decline in Mining industry employment. Mining industry employment in QLD actually peaked in May 2013 at 75,631, a steady increase from 71,871 in August 2012, although noting that in May 2012 employment hit 75,340 which is consistent with the experiences of WA and NSW at that time. In line with the national trend, NSW hit a peak Mining industry employment of 50,640 in May 2012 before steadily declining to 41,968, although it has had a modest recovery in the May 2013 quarter. QLD is the only State that has reported consistent and steady growth in Mining industry employment since August 2012. Employment data for August 2013 is due to be released on 19 September at which point further assessment can be made about State and national trends in Mining industry employment.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

16

Australia’s top resident LDC workforce cities

17

Australia’s top resident LDC workforce cities

Top 10 cities ranked by resident workforce in 2011

Top 10 cities ranked by resident LDC workforce in 2011

Rank

Region

Resident workforce 2011

Rank

1

Sydney

2,063,273

1

Perth

24,790

2

Melbourne

1,898,665

2

Sydney

16,510

3

Brisbane

984,970

3

Melbourne

14,323

4

Perth

824,416

4

Brisbane

13,849

5

Adelaide

547,926

5

Adelaide

6,834

6

Gold Coast (primary)

254,235

6

Gold Coast (primary)

6,706

7

Newcastle

232,528

7

Newcastle

5,524

8

Canberra-Queanbeyan

222,346

8

Sunshine Coast

4,120

9

Wollongong

119,449

9

Mackay (primary)

3,802

10

Sunshine Coast

103,014

10

Townsville

3,683

In 2011 Sydney and Melbourne were home to roughly two in every five of Australia’s 10,058,325 strong workforce. The capital cities of Brisbane, Perth and Adelaide were the next largest cities in 2011 based on size of resident workforce. At the time these top five cities represented 63% of the Australian workforce. Outside of these major capital city markets, Gold Coast (primary) was the next largest place of residence for Australian workers with 254,235 in 2011, followed by Newcastle with 232,528. LDC workers are often referred to as fly-in/fly-out (FIFO) workers but are also representative of drive-in/drive-out, bus-in/bus-out and ship-in/ship-out workers. An LDC worker is someone who travels 100km or more between their place of usual residence and their place of work which can often make a daily commute impractical. By matching the top 10 cities ranked by resident workforce against the top 10 cities ranked by resident LDC workforce in 2011, it highlights those cities that are relatively under- and over-represented by resident LDC workers which gives some further indication about the infrastructure and service needs of those workers.

Region

Resident LDC workforce 2011

In 2011, Perth was the largest city in terms of resident LDC workforce with 24,790. This is over-represented relative to the size of Perth’s workforce and is largely due to the presence of significant mining operations in the Pilbara and Kalgoorlie-Boulder, for which Perth is the largest and nearest urban centre. The Gold Coast (primary) region was home to 6,706 LDC workers in 2011, nearly the same size market as that present in Adelaide (6,834). Adelaide is a point of origin for many workers travelling to the mining region of Central SA, while Gold Coast (primary) in a similar fashion has the Bowen Basin. Interestingly Gold Coast is able to support a resident LDC workforce, the same size as Adelaide’s, with less than half the total workforce.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

18

Comparison of study region workforces

19

Resident workforce growth of study regions compared to resident LDC workforce growth Resident workforce

LDC workforce as a proportion of resident workforce

Resident LDC workforce

Region 2006

2011

No.

%

2006

2011

No.

%

2006

2011

Gold Coast (primary)

221,306

254,235

32,929

15%

3,496

6,706

3,210

92%

1.6%

2.6%

Gold Coast (secondary)

31,000

33,893

2,893

9%

769

1,061

292

38%

2.5%

3.1%

Gold Coast

252,306

288,128

35,822

14%

4,265

7,767

3,502

82%

1.7%

2.7%

Brisbane

878,829

984,970

106,141

12%

9,294

13,849

4,555

49%

1.1%

1.4%

Mackay (primary)

35,145

41,857

6,712

19%

2,704

3,802

1,098

41%

7.7%

9.1%

Mackay (secondary)

12,957

15,494

2,537

20%

1,302

1,681

379

29%

10.0%

10.8%

Mackay

48,102

57,351

9,249

19%

4,006

5,483

1,477

37%

8.3%

9.6%

Newcastle

208,297

232,528

24,231

12%

4,847

5,524

677

14%

2.3%

2.4%

9,104,187

10,058,325

954,138

10%

155,596

213,746

58,150

37%

1.7%

2.1%

Australia

The size of the Australian workforce grew from 9,104,187 in 2006 to 10,058,325 in 2011, representing a 10% increase. Over the same period the pool of LDC workers grew from 155,610 in 2006 to 213,773 in 2011, a growth of 37%. This represents a shift towards workers choosing LDC work practices over more traditional working arrangements. Specifically, the propensity for Australians to undertake LDC work practices rose from 1.7% in 2006 to 2.1% in 2011. Although this is a relatively small change at the national level, it has not been uniform across all parts of Australia. The shift has been most prevalent in regions that can provide access to Mining regions, which attract LDC workers utilising fly-in/fly-out, drive-on/drive-out, bus-in/bus-out and other types of transport arrangements. This is further highlighted by the fact that the Mining industry was the fastest growing industry of employment between 2006 and 2011, increasing by 65%. At a regional level, the resident workforce of Gold Coast (primary) was 254,235 as at 2011, with a growth of nearly 33,000 or 15% since 2006. Contrastingly the number of resident LDC workers nearly doubled over this period, increasing by 92%, from 3,496 in 2006 to 6,706 in 2011. The shift towards workers choosing LDC work practices over other forms of employment in the five years to 2011 was relatively high compared with the benchmark study regions.

Brisbane’s workforce increased by 12% between 2006 and 2011, compared to 19% in Mackay (primary & secondary) and 12% in Newcastle. This is contrasted against growth in resident LDC workers over the same period of 49% in Brisbane, 37% in Mackay and 14% in Newcastle. Brisbane and Mackay have exhibited a strong increase in LDC workers relative to their workforce, although not as strong as Gold Coast. The resident LDC workforce in Newcastle on the other hand has increased at a marginally faster rate than its workforce (14% and 12% respectively). The Gold Coast region as a whole (primary & secondary) was home to 7,767 LDC workers in 2011. This compares with 13,849 for Brisbane, 5,483 for Mackay and 5,523 for Newcastle. Therefore the market for LDC work practices in Gold Coast is roughly 56% that of Brisbane in 2011, an increase from 46% in 2006. Across all study regions, the rates of growth of resident LDC workers outstripped the rates of growth of the total workforce. The degree to which these rates differ represents the velocity of the shifting preferences of residents to take on work opportunities in distant locations. Rapid growth in the Mining industry, including the strong demand for temporary labour during the construction phase of mines, and transportation options available to workers has influenced this trend.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

20

Regional profile Gold Coast (primary)

21

Gold Coast (primary) LDC industry profile

Proportion of total LDC resident workforce

Proportion of LDC workers living in Gold Coast (primary) by industry of employment in 2006 and 2011 benchmarked against Australia in 2011 25%

20%

15%

Interestingly the Mining industry’s underrepresentation mirrors the Construction industry’s over-representation in 2011

Gold Coast (primary) 2006 Gold Coast (primary) 2011 Australia 2011

Over-represented

Mildly under-represented Mildly under-represented 10%

5%

0%

Of the 6,706 Gold Coast (primary) resident LDC workers in 2011, nearly one in five cited Construction as their industry of employment. A further 12% of these 6,706 LDC workers were employed in the Mining industry, and together with Construction represent one-third of Gold Coast (primary) resident LDC workers. The Mining and Construction industries are closely tied with respect to LDC workers, because many workers involved with the construction of mine sites are attributed to the Construction industry.

Compared to the Australian LDC worker industry profile in 2011, Gold Coast (primary) is significantly over-represented in the Construction industry and equally underrepresented in the Mining industry. Gold Coast (primary) is also mildly over-represented in the Accommodation and Food Services and Retail Trade industries compared to the Australian average in 2011, although the proportion of Gold Coast (primary) resident LDC workers in these industries has declined since 2006.

Source: KPMG Demographics; Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

22

Gold Coast (primary) Top ten destinations for LDC workers in 2011 Top ten destinations for LDC workers living in Gold Coast (primary) ranked by place of work as at 2011 2011

Top ten LDC worker routes from Gold Coast (primary) in 2011

Change from 2006

Rank Place of work No.

%

No.

%

1

Sydney

982

15%

292

42%

2

Undefined/No Fixed Address - NSW

559

8%

430

333%

3

Bowen Basin

538

8%

443

466%

4

Undefined/No Fixed Address - QLD

510

8%

367

257%

5

Balance - QLD

439

7%

71

19%

6

Melbourne

414

6%

117

39%

7

Balance - NSW

301

4%

64

27%

8

Surat Basin

295

4%

130

79%

9

Pilbara

229

3%

195

574%

10

Brisbane

200

3%

33

20%

Remainder

2,239

33%

1,068

91%

Total

6,706

100%

3,210

92%

Undefined QLD (510) Pilbara (229) Bowen Basin (538) Surat Basin (295) Balance QLD (439)

Gold Coast Balance NSW (301)

Sydney (982)

In 2011 there were 6,706 Gold Coast (primary) resident LDC workers, increasing from 3,210 in 2006 or by 92%, considerably faster than the national average increase of 37%. Of the top ten destinations for these LDC workers in 2011, they were largely travelling to Capital Cities, Mining regions and other rural locations. Sydney has continued to pull workers from Gold Coast (primary) and was the top LDC destination in 2006 and 2011, accounting for 982 or 15% of Gold Coast (primary) resident LDC workers in 2011. In third place, the Mining destination of Bowen Basin attracted 538 Gold Coast (primary) LDC workers in 2011, representing a staggering 466% increase from 2006. The Pilbara is another destination to experience a rapid increase (574%) in LDC workers between 2006 and 2011 (albeit off a small base of 34 in 2006). This suggests that workers have become more willing to make long distance commutes for work in order to live in a lifestyle destination like the Gold Coast.

Brisbane (200)

Melbourne (414)

Undefined NSW (559)

Due to the definition of Gold Coast (primary) spanning QLD and NSW, there are a large number of LDC workers falling into the Undefined/No Fixed Address – NSW and Undefined/No Fixed Address – QLD destinations. The 559 Gold Coast (primary) resident LDC workers tagged to Undefined/No Fixed Address – NSW are from the QLD part of Gold Coast (primary) and vice versa. This is due to insufficient information provided in completed Census forms whereby, as an example, a Gold Coast (primary) worker living in NSW may simply indicate “QLD” as their place of work, rather than referring to a more specific location within the State of QLD.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

23

Gold Coast (primary) Top ten destinations for LDC workers in 2011 broken down by industry of employment Top ten places of work for LDC workers living in Gold Coast (primary), cross-tabulated by industry of employment in 2011 1

2

3

4

5

6

Sydney

Undefined/No Fixed Address - NSW

Bowen Basin

Undefined/No Fixed Address - QLD

Balance QLD

Melbourne

7

8

9

10

Pilbara

Brisbane

Industry Balance Surat Basin NSW

Construction

11%

13%

24%

28%

27%

8%

11%

22%

37%

18%

Mining

1%

2%

51%

4%

8%

1%

10%

22%

27%

2%

Accommodation and Food Services

8%

7%

9%

5%

8%

4%

32%

9%

8%

3%

Retail Trade

9%

19%

2%

7%

7%

9%

2%

4%

0%

5%

Health Care

3%

9%

3%

9%

13%

7%

4%

8%

1%

11%

Transport, Postal and Warehousing

11%

5%

1%

3%

7%

13%

3%

2%

6%

10%

Manufacturing

9%

8%

3%

6%

5%

9%

4%

3%

7%

6%

Professional, Scientific and Technical Services

9%

5%

1%

3%

4%

15%

3%

3%

7%

9%

Public Administration and Safety

5%

5%

1%

6%

3%

4%

7%

2%

0%

9%

Wholesale Trade

9%

4%

0%

3%

1%

10%

0%

0%

0%

5%

Education and Training

3%

4%

1%

7%

2%

3%

5%

5%

0%

8%

Administrative and Support Services

4%

4%

0%

5%

3%

1%

0%

0%

1%

0%

Other Services

3%

4%

2%

3%

0%

3%

2%

2%

0%

6%

Inadequately Described and Not Stated

4%

2%

1%

2%

2%

4%

2%

1%

1%

0%

Agriculture, Forestry and Fishing

0%

3%

1%

1%

5%

0%

8%

9%

0%

0%

Information Media and Telecommunications

3%

2%

0%

1%

0%

2%

1%

0%

2%

4%

Rental, Hiring and Real Estate Services

2%

1%

0%

1%

3%

3%

1%

1%

0%

4%

Financial and Insurance Services

3%

1%

0%

2%

1%

2%

1%

1%

0%

2%

Arts and Recreation

1%

3%

0%

3%

2%

3%

3%

2%

0%

2%

Electricity, Gas, Water and Waste Services

1%

2%

1%

1%

0%

0%

2%

2%

2%

0%

A significant proportion of resident LDC workers in Gold Coast (primary) travelling to the Mining regions of the Bowen Basin, Surat Basin and the Pilbara are unsurprisingly employed in the Mining and Construction industries. Overall, across the top ten places of work for LDC workers residing in Gold Coast (primary), the Construction industry is most dominant followed by the Mining industry. The LDC route most dominated by one industry is Gold Coast (primary) to Bowen Basin, where 275, or 51% of LDC workers were employed in the Mining industry in 2011.

Of the 510 LDC workers residing in Gold Coast (primary) in 2011 who have Undefined/No Fixed Address – QLD as a place of work, 28% or 144 workers were employed in the Construction industry. Undefined/No Fixed Address – QLD, comes about as a place of work when a resident does not provide enough information on their Census form to tag their workplace to a location any more specific than the State of Queensland. Although it is not certain, given that a large cohort of the LDC workers that have Undefined/No Fixed Address – QLD as a place of work are in the Construction industry, it is foreseeable that many are travelling to Mining regions and thus adding to the demand for transportation to such locations.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

24

Regional Profile Gold Coast (primary and secondary)

25

Gold Coast (primary and secondary) Top ten destinations for LDC workers in 2011 Top ten destinations for LDC workers living in Gold Coast (primary and secondary) ranked by place of work as at 2011 2011

Top ten LDC worker routes from Gold Coast (primary and secondary) in 2011

Change from 2006

Rank Place of work No.

%

No.

%

1,154

15%

307

36%

1

Sydney

2

Undefined/No Fixed Address - QLD

639

8%

445

229%

3

Bowen Basin

596

8%

479

409%

4

Undefined/No Fixed Address - NSW

577

7%

435

306%

5

Balance - QLD

484

6%

74

18%

6

Melbourne

456

6%

124

37%

7

Balance - NSW

387

5%

70

22%

8

Brisbane

369

5%

50

16%

9

Surat Basin

322

4%

142

79%

10

Pilbara

263

3%

229

674%

Remainder

2,520

32%

1,147

84%

Total

7,767

100%

3,502

82%

Undefined QLD (639) Pilbara (263)

By expanding the definition of Gold Coast to include the primary and secondary regions, there were 7,767 resident LDC workers in 2011 compared to 6,706 resident LDC workers in Gold Coast (primary). For Gold Coast (primary and secondary) this represents a growth of 3,502 workers or 82% for the region since 2006.

Bowen Basin (596) Surat Basin (322) Balance QLD (484)

Brisbane (369)

Gold Coast Balance NSW (387)

Sydney (1,154)

Melbourne (456)

Undefined NSW (577)

The list of top ten destinations for LDC workers remains the same for Gold Coast (primary and secondary) as for Gold Coast (primary) and exhibits similar distribution and growth trends. Namely Sydney remains as the single largest LDC worker destination, while Pilbara and Bowen Basin have exhibited similarly high levels of relative growth in LDC workers between 2006 and 2011. Pilbara has gone from being a work destination for only 34 Gold Coast (primary and secondary) residents in 2006 to a work destination for 263 in 2011, representing a growth of 674%. Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

26

Gold Coast (primary and secondary) Top ten destinations for LDC workers in 2011 broken down by industry of employment Top ten places of work for LDC workers living in Gold Coast (primary and secondary), cross-tabulated by industry of employment in 2011 1

2

3

4

5

6

7

8

9

10

Sydney

Undefined/No Fixed Address - QLD

Bowen Basin

Undefined/No Fixed Address - NSW

Balance QLD

Melbourne

Balance NSW

Brisbane

Surat Basin

Pilbara

Industry

Construction

10%

29%

23%

13%

27%

7%

9%

15%

22%

38%

Mining

1%

3%

51%

2%

8%

1%

8%

2%

21%

27%

Accommodation and Food Services

7%

4%

8%

7%

10%

4%

30%

2%

11%

7%

Health Care

4%

8%

3%

8%

12%

6%

5%

9%

7%

2%

Transport, Postal and Warehousing

11%

3%

1%

5%

6%

12%

2%

8%

2%

5%

Retail Trade

8%

8%

2%

18%

6%

9%

2%

3%

5%

1%

Manufacturing

8%

7%

3%

8%

4%

8%

4%

4%

3%

7%

Professional, Scientific and Technical Services

8%

4%

2%

5%

4%

14%

3%

14%

3%

6%

Public Administration and Safety

6%

6%

2%

5%

4%

6%

7%

7%

2%

0%

Education and Training

3%

5%

1%

4%

2%

5%

7%

10%

4%

0%

Wholesale Trade

10%

3%

1%

4%

1%

9%

0%

4%

1%

0%

Administrative and Support Services

4%

4%

0%

5%

3%

1%

2%

2%

0%

1%

Inadequately Described and Not Stated

3%

2%

1%

2%

2%

4%

1%

4%

1%

1%

Other Services

3%

2%

2%

4%

1%

3%

3%

3%

2%

0%

Agriculture, Forestry and Fishing

0%

1%

1%

3%

5%

0%

9%

1%

9%

0%

Information Media and Telecommunications

4%

2%

0%

2%

0%

3%

2%

4%

0%

2%

Financial and Insurance Services

4%

2%

0%

1%

1%

2%

1%

2%

1%

0%

Rental, Hiring and Real Estate Services

2%

1%

0%

1%

2%

2%

2%

3%

1%

0%

Arts and Recreation

1%

3%

0%

3%

1%

3%

3%

3%

2%

0%

Electricity, Gas, Water and Waste Services

1%

2%

1%

2%

0%

0%

2%

0%

2%

2%

Some 1,507 LDC workers living in the Gold Coast (primary and secondary) region were employed in the Construction industry in 2011, which represents 19% of the region’s 7,767 LDC worker market. Across the top ten places of work for LDC workers, the Construction industry is most prevalent for the Mining regions of the Bowen Basin, Surat Basin and Pilbara, as well as Balance – QLD and Undefined/No Fixed Address – QLD. In each case more than one in every five workers travelling the route were in the Construction industry.

Although it is not certain, and similar to Gold Coast (primary), given that a large cohort of the LDC workers that have Undefined/No Fixed Address – QLD as a place of work are in the Construction industry, it is foreseeable that many are travelling to Mining regions and thus adding to the demand for transportation to such locations. As per the Gold Coast (primary) region, the LDC route most dominated by one industry was the commute to the Bowen Basin for which 51% of the 596 workers were employed in the Mining industry.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

27

Regional Profile Brisbane

28

Brisbane LDC industry profile

Proportion of total LDC resident workforce

Proportion of LDC workers living in Brisbane by industry of employment in 2006 and 2011 benchmarked against Australia in 2011 25%

Moderately under-represented but the gap is closing Brisbane 2006

20% Mildly over-represented

Brisbane 2011 Australia 2011

15%

10%

Mildly under-represented

5%

0%

In 2011, the largest industry of employment for LDC workers residing in Brisbane was Mining (16%). Although this was below the national average of 21%, there has been a significant increase over the five years to 2011 (up seven percentage points). The Construction industry dropped from 1st to 2nd position between 2006 and 2011, however remains to have a slight over-representation of LDC workers (16% compared to the national average of 13%). The over-representation of Mining and Construction LDC workers in Brisbane is likely due to it being the capital city for QLD, which is considered to be one of the major resources States in Australia and is home to one of the largest coal reserves in the country in the Bowen Basin.

Most other industries of employment for LDC workers living in Brisbane were fairly consistent with trends experienced at the national level.

Source: KPMG Demographics; Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

29

Brisbane Top ten destinations for LDC workers in 2011 Top ten LDC worker routes from Brisbane in 2011

Top ten destinations for LDC workers living in Brisbane ranked by place of work as at 2011 2011

Change from 2006

Rank Place of work No.

%

No.

%

1

Bowen Basin

1,748

13%

1,054

152%

2

Sydney

1,577

11%

257

19%

3

Balance - QLD

1,360

10%

88

7%

4

Surat Basin

1,137

8%

406

56%

5

Melbourne

958

7%

270

39%

6

Undefined/No Fixed Address - NSW

585

4%

287

96%

7

North-West QLD

522

4%

230

79%

8

Pilbara

504

4%

408

425%

9

Balance - NSW

467

3%

175

60%

10

Perth

399

3%

191

92%

Remainder

4,592

33%

1,189

35%

Total

13,849

100%

4,555

49%

There were 13,849 resident LDC workers in Brisbane in 2011. This was a 4,555 or 49% increase from 2006 and was significantly higher than the 37% national average increase over this same time period. Comparatively, the total workforce in Brisbane increased by 14% between 2006 and 2011. Bowen Basin was the most popular place of work for LDC workers from Brisbane in 2011, representing 13% of total LDC workers. Together with Balance – QLD (10%), Surat Basin (8%) and North-West QLD (4%), just over one-third (35%) of LDC workers in Brisbane were most likely travelling to mine locations across the State. Sydney was the second largest place of work for Brisbane resident LDC workers representing 11% of Brisbane’s LDC workers in 2011, and can be explained by the over-representation of the Professional, Scientific and Technical Services LDC workers in the region.

Pilbara (504)

Bowen Basin (1,748)

North-West QLD (522)

Surat Basin (1,137) Balance QLD (1,360) Brisbane

Balance NSW (467)

Perth (399)

Sydney (1,577)

Melbourne (958)

Undefined NSW (585)

The largest increase in LDC workers between 2006 and 2011 occurred in the Pilbara (408 persons or 425% increase) and the Bowen Basin (1,054 or 152% increase) which can be attributed to the strong demand for labour in these regions.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

30

Brisbane Top ten destinations for LDC workers in 2011 broken down by industry of employment Top ten places of work for LDC workers living in Brisbane, cross-tabulated by industry of employment in 2011 1

2

3

4

5

6

7

8

9

10

Pilbara

Balance NSW

Perth

Industry Undefined/No Fixed North-West Balance Surat Basin Melbourne Address - NSW QLD QLD

Bowen Basin

Sydney

Mining

50%

1%

8%

17%

2%

4%

57%

27%

9%

20%

Construction

22%

5%

17%

20%

7%

19%

9%

41%

12%

18%

Professional, Scientific and Technical Services

4%

13%

5%

7%

15%

11%

2%

6%

8%

14%

Transport, Postal and Warehousing

2%

18%

6%

4%

8%

10%

2%

5%

5%

7%

Public Administration and Safety

1%

7%

6%

4%

6%

6%

3%

1%

1%

5%

Manufacturing

3%

8%

8%

6%

11%

7%

6%

4%

4%

7%

Health Care

2%

3%

10%

10%

5%

6%

6%

1%

6%

3%

Retail Trade

1%

6%

5%

5%

11%

7%

4%

1%

9%

3%

Wholesale Trade

2%

13%

2%

3%

12%

7%

2%

0%

1%

2%

Accommodation and Food Services

5%

2%

6%

4%

2%

4%

4%

3%

13%

2%

Education and Training

1%

3%

8%

8%

2%

2%

1%

0%

3%

2%

Administrative and Support Services

3%

4%

2%

1%

3%

4%

1%

1%

0%

5%

Agriculture, Forestry and Fishing

1%

0%

11%

3%

0%

2%

2%

0%

13%

2%

Other Services

1%

2%

2%

1%

1%

4%

1%

2%

2%

3%

Inadequately Described and Not Stated

1%

2%

1%

1%

5%

2%

0%

7%

1%

2%

Financial and Insurance Services

0%

6%

0%

3%

5%

2%

0%

0%

2%

2%

Arts and Recreation

0%

1%

1%

1%

3%

3%

0%

0%

7%

2%

Information Media and Telecommunications

0%

3%

1%

0%

3%

1%

0%

0%

1%

0%

Electricity, Gas, Water and Waste Services

0%

1%

1%

3%

1%

0%

0%

2%

1%

3%

Rental, Hiring and Real Estate Services

0%

2%

0%

1%

0%

0%

1%

0%

1%

0%

Brisbane’s top destination for LDC workers in 2011 was the Bowen Basin with 1,748 workers of which nearly three-quarters were employed in the Mining and Construction industries. This is not surprising given the prevalence of coal mining activities and mine site construction in the region. The other mining region destinations of the Surat Basin, North-West QLD and the Pilbara were also dominated by LDC workers in the Mining and Construction industries.

As the second ranked destination for Brisbane’s resident LDC workers in 2011, Sydney was pulling 1,577 workers of which nearly half were represented by the Transport, Postal and Warehousing, Professional, Scientific and Technical Services and Wholesale Trade industries. Similar trends were exhibited by those workers travelling from Brisbane to Melbourne in 2011, where Professional, Scientific and Technical Services and Wholesale Trade were the largest industries of employment.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

31

Regional Profile Mackay (primary)

32

Mackay (primary) LDC industry profile

Proportion of total LDC resident workforce

Proportion of LDC workers living in Mackay (primary) by industry of employment in 2006 and 2011 benchmarked against Australia in 2011 80% 70%

Significantly over-represented in 2006 and trending higher still in 2011

Mackay 2006 Mackay 2011

60%

Australia 2011 50% 40% 30%

Mildly under-represented

20%

Mildly under-represented

10% 0%

Over two-thirds (67%) of resident LDC workers in the Mackay (primary) region were employed in the Mining industry in 2011. This was also significantly higher than the 21% national average and is attributable to Mackay’s close proximity to the Bowen Basin, which is one of Australia’s most prominent mining regions. The Mining industry also experienced the largest increase in LDC workers, shifting upwards by four percentage points over the five years to 2011.

Most other industries of employment were mildly under-represented in 2011 as compared to the national average which is largely due to the over-representation of the Mining industry. Since 2006, LDC workers living in Mackay (primary) have become increasingly likely to be employed in the Mining industry.

Source: KPMG Demographics; Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

33

Mackay (primary) Top ten destinations for LDC workers in 2011

Top ten destinations for LDC workers living in Mackay (primary) ranked by place of work as at 2011 2011

Top ten LDC worker routes from Mackay (primary) in 2011

Change from 2006

Rank Place of work No.

%

No.

%

3,025

80%

942

45%

1

Bowen Basin

2

Brisbane

245

6%

92

60%

3

Balance - QLD

173

5%

-25

-13%

4

Townsville

32

1%

-13

-29%

5

Rockhampton

28

1%

0

0%

6

Pilbara

23

1%

16

229%

7

Gladstone

23

1%

16

229%

8

North-West QLD

22

1%

9

69%

9

Sydney

21

1%

0

0%

10

Newcastle

21

1%

18

600%

Remainder

189

5%

43

29%

3,802

100%

1,098

41%

Total

Townsville (32)

Pilbara (23)

Over the five years to 2011, the number of resident LDC workers in the Mackay (primary) region increased by 1,098 or 41% to a pool of 3,802 LDC workers. This increase was at a slightly higher rate than the 37% increase experienced nationally in the LDC workforce between 2006 and 2011.

North-West QLD (22)

Mackay Rockhampton (28) Balance QLD (173)

Bowen Basin (3,025)

Gladstone (23)

Brisbane (245) Newcastle (21)

Sydney (21)

The Bowen Basin is the largest place of work for LDC workers residing in Mackay (primary), representing 3,025 workers or 80% of the total. This is attributable to the close proximity of the Bowen Basin and the employment opportunities presented to residents in Mackay due to the large presence of mining in the region. Between 2006 and 2011, the Pilbara and Gladstone both increased by 229% (albeit off a small base) which may also be attributable to the mining opportunities presented in each of those regions. Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

34

Mackay (primary) Top ten destinations for LDC workers in 2011 broken down by industry of employment Top ten places of work for LDC workers living in Mackay (primary), cross-tabulated by industry of employment in 2011 1

2

3

4

5

6

7

8

9

10

Bowen Basin

Brisbane

Balance QLD

Townsville

Rockhampton

Pilbara

Gladstone

North-West QLD

Sydney

Newcastle

Industry

Mining

79%

14%

42%

13%

11%

22%

0%

45%

0%

29%

Construction

7%

21%

10%

19%

0%

39%

30%

27%

14%

0%

Manufacturing

2%

7%

5%

0%

14%

13%

13%

0%

19%

0%

Accommodation and Food Services

2%

8%

2%

0%

0%

0%

0%

0%

0%

0%

Other Services

2%

6%

3%

0%

11%

0%

17%

0%

0%

0%

Transport, Postal and Warehousing

1%

7%

7%

19%

29%

13%

0%

0%

0%

29%

Administrative and Support Services

2%

4%

6%

0%

0%

0%

0%

0%

0%

0%

Professional, Scientific and Technical Services

1%

4%

9%

16%

0%

0%

13%

0%

14%

14%

Retail Trade

0%

13%

0%

0%

0%

0%

0%

14%

14%

14%

Wholesale Trade

2%

0%

2%

0%

0%

0%

0%

0%

19%

0%

Public Administration and Safety

1%

3%

7%

0%

0%

0%

13%

0%

0%

0%

Health Care

1%

5%

2%

19%

11%

0%

0%

14%

0%

0%

Education and Training

0%

5%

0%

0%

0%

0%

0%

0%

0%

14%

Inadequately Described and Not Stated

0%

0%

2%

0%

0%

0%

0%

0%

19%

0%

Agriculture, Forestry and Fishing

0%

0%

5%

0%

0%

0%

0%

0%

0%

0%

Electricity, Gas, Water and Waste Services

0%

0%

0%

0%

11%

0%

13%

0%

0%

0%

Rental, Hiring and Real Estate Services

0%

0%

0%

0%

0%

13%

0%

0%

0%

0%

Financial and Insurance Services

0%

1%

0%

0%

0%

0%

0%

0%

0%

0%

Arts and Recreation

0%

2%

0%

16%

0%

0%

0%

0%

0%

0%

Information Media and Telecommunications

0%

0%

0%

0%

14%

0%

0%

0%

0%

0%

Seven out of the top ten destinations for LDC workers living in Mackay (primary) are in QLD. As the dominant destination for LDC workers living in Mackay (primary) in 2011, the Bowen Basin had 2,393 workers employed in the Mining industry, which represents 79% of Mackay (primary) residents making this commute. Similar to the other study regions, LDC workers travelling to the Pilbara and NorthWest QLD destinations were predominantly employed in the Mining or Construction industries.

Interestingly over one-third of the 245 workers travelling from Mackay (primary) to Brisbane were employed in the Mining and Construction industries. This seems like a counter-intuitive trend, given that the majority of QLD’s Mining and related activities tend to be geographically closer to Mackay, however may be related to head office activities in Brisbane, as well as other commercial construction work activities.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

35

Regional Profile Mackay (primary and secondary)

36

Mackay (primary and secondary) Top ten destinations for LDC workers in 2011

Top ten destinations for LDC workers living in Mackay (primary and secondary) ranked by place of work as at 2011 2011

Top ten LDC worker routes from Mackay (primary and secondary) in 2011

Change from 2006

Rank Place of work No.

%

No.

%

4,445

81%

1,392

46%

1

Bowen Basin

2

Balance - QLD

297

5%

-40

-12%

3

Brisbane

292

5%

97

50%

4

Townsville (QLD)

44

1%

-15

-25%

5

Rockhampton (QLD)

38

1%

-11

-22%

6

Gladstone (QLD)

29

1%

8

38%

7

Sydney

27

0%

-13

-33%

8

Pilbara

23

0%

16

229%

9

North-West QLD

22

0%

0

0%

10

Newcastle

21

0%

18

600%

Remainder

245

4%

25

11%

5,483

100%

1,477

37%

Total

Townsville (44)

Pilbara (23)

Similar to Mackay (primary), the largest number of LDC workers in the wider geographic definition of Mackay (primary and secondary) in 2011 were travelling to Bowen Basin, representing 4,445 workers or 81% of the 5,483 total. This is comparable to the 80% of LDC workers living in Mackay (primary) travelling to Bowen Basin for work. While the total number of LDC workers residing in Mackay (primary) increased by rates slightly higher than the national average of 37%, Mackay (primary and secondary) grew in line with the national average.

North-West QLD (22)

Mackay

Balance QLD (297)

Bowen Basin (4,445)

Rockhampton (38) Gladstone (29)

Brisbane (292) Newcastle (21)

Sydney (27)

Furthermore, in the five years to 2011, the LDC workforce exceeded the growth of the total workforce by 18 percentage points (37% and 19% respectively), highlighting the strength of the LDC workforce within Mackay. Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

37

Mackay (primary and secondary) Top ten destinations for LDC workers in 2011 broken down by industry of employment Top ten places of work for LDC workers living in Mackay (primary and secondary), cross-tabulated by industry of employment in 2011 1

2

3

4

5

6

7

8

9

10

Bowen Basin

Balance QLD

Brisbane

Townsville

Rockhampton

Gladstone

Sydney

Pilbara

North-West QLD

Newcastle

Mining

78%

36%

18%

9%

8%

0%

0%

22%

45%

29%

Construction

7%

9%

19%

14%

0%

24%

11%

39%

27%

0%

Manufacturing

2%

6%

7%

0%

11%

21%

26%

13%

0%

0%

Transport, Postal and Warehousing

1%

10%

6%

20%

47%

0%

0%

13%

0%

29%

Accommodation and Food Services

2%

2%

7%

0%

0%

0%

0%

0%

0%

0%

Other Services

2%

3%

5%

0%

8%

14%

0%

0%

0%

0%

Administrative and Support Services

2%

5%

3%

7%

0%

0%

0%

0%

0%

0%

Retail Trade

0%

1%

14%

7%

0%

0%

22%

0%

14%

14%

Wholesale Trade

2%

2%

0%

7%

0%

0%

15%

0%

0%

0%

Professional, Scientific and Technical Services

1%

5%

5%

11%

0%

10%

11%

0%

0%

14%

Public Administration and Safety

1%

5%

3%

0%

0%

10%

0%

0%

0%

0%

Health Care

0%

2%

5%

14%

8%

0%

0%

0%

14%

0%

Agriculture, Forestry and Fishing

1%

9%

0%

0%

0%

0%

0%

0%

0%

0%

Inadequately Described and Not Stated

1%

2%

0%

0%

0%

0%

15%

0%

0%

0%

Education and Training

0%

2%

4%

0%

0%

0%

0%

0%

0%

14%

Industry

Financial and Insurance Services

0%

0%

2%

0%

0%

0%

0%

0%

0%

0%

Electricity, Gas, Water and Waste Services

0%

0%

0%

0%

8%

21%

0%

0%

0%

0%

Rental, Hiring and Real Estate Services

0%

0%

0%

0%

0%

0%

0%

13%

0%

0%

Arts and Recreation

0%

0%

1%

11%

0%

0%

0%

0%

0%

0%

Information Media and Telecommunications

0%

0%

0%

0%

11%

0%

0%

0%

0%

0%

The top ten LDC worker destinations for workers living in Mackay (primary and secondary) were the same as for Mackay (primary) in 2011, although some of the rankings changed by up to two positions. When broken down by industry, the major trends evidenced in Mackay (primary) hold true for Mackay (primary and secondary) only for a larger LDC worker population. Mining still remains the dominant industry of employment, representing 67% of the LDC workers (this is across all places of work), or 3,697, living in Mackay (primary and secondary). As shown on Page 37, the commute from Mackay (primary + secondary) to Bowen Basin represented 81% of the region’s total resident LDC workers. When this commute is broken down

by industry it is evident that 78% of the workers are employed in the Mining industry, which is evidence of a highly focused workforce responding to the employment needs of the burgeoning Mining sector in the Bowen Basin at the time. Due to the relatively small number of LDC workers travelling to the other top ten destinations, particularly from Townsville (ranked 4th), and the fact these workers are distributed thinly across 20 industries, the trends in the table above are less meaningful. For instance 47% of the LDC workers travelling between Mackay (primary and secondary) and Rockhampton are in the Transport, Postal and Warehousing industry, however this represents only 18 people.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

38

Regional Profile Newcastle

39

Newcastle LDC industry profile

Proportion of total LDC resident workforce

Proportion of LDC workers living in Newcastle by industry of employment in 2006 and 2011 benchmarked against Australia in 2011 25%

Over-represented

Significantly under-represented Newcastle 2006

20%

Newcastle 2011 Moderately under-represented

Australia 2011

15% Over represented

Over-represented Moderately under-represented

10%

5%

0%

The Public Administration and Safety industry represented the largest proportion of LDC workers residing in Newcastle at 11% in 2011, however it had declined by two percentage points over the five years to 2011. The largest growth in LDC workers occurred in the Mining industry, increasing by three percentage points to represent 7% of the LDC workforce in 2011. Although this industry experienced the largest growth, it is still significantly under-represented when compared to the Australian average of 21% in 2011. Whilst the Mining industry nationally had the largest proportion of LDC workers, in Newcastle it was ranked as the 6th largest industry, indicating that Newcastle is not a typical place of residence for the LDC workforce, such as Mackay, whereby persons residing there predominantly LDC into a Mining region.

The close proximity to Sydney presents Newcastle residents with employment opportunities across many industries which is highlighted in the relatively flat spread of LDC workers across industries in both 2006 and 2011 when compared to the other study regions. Although Newcastle is located close to the Hunter Valley, most of the workers employed in the Mining industry in the Hunter Valley are residents of the region, rather than LDC workers commuting from areas outside the Hunter Valley.

Source: KPMG Demographics; Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

40

Newcastle Top ten destinations for LDC workers in 2011 Top ten LDC worker routes from Newcastle in 2011

Top ten destinations for LDC workers living in Newcastle ranked by place of work as at 2011 2011

Change from 2006

Rank Place of work No.

%

No.

%

2,881

52%

168

6%

1

Sydney

2

Balance - NSW

665

12%

139

26%

3

Hunter Valley

281

5%

91

48%

4

Melbourne

172

3%

35

26%

5

Brisbane

171

3%

85

99%

6

Undefined/No Fixed Address - QLD

119

2%

16

16%

7

Pilbara

111

2%

92

484%

8

Canberra-Queanbeyan

89

2%

23

35%

9

Undefined/No Fixed Address - WA

87

2%

61

235%

10

Perth

84

2%

28

50%

Remainder

864

16%

-61

-7%

5,524

100%

677

14%

Total

Undefined QLD (119) Pilbara (111)

Brisbane (171)

Balance NSW (665)

Newcastle Perth (84)

In 2011 there were 5,524 LDC workers residing in Newcastle, which was a 677 person increase from 2006 and translates to a 14% growth. Comparatively, the resident workforce grew by 10% over the same time period. However, while the LDC workforce grew by 14% in Newcastle over the five years to 2011, nationally the LDC workforce increased by almost three times this rate, at 37%. Due to its proximity, and coupled with the employment opportunities, over half the LDC workers in Newcastle were commuting to Sydney as their place of work in 2011. A further 17% were travelling to other parts of the State (12% Balance NSW and 5% to the Hunter Valley). Together, over two-thirds of the LDC workers in Newcastle were commuting to other parts of New South Wales.

Hunter Valley (281)

Undefined WA (87)

CanberraQueanbeyan (89)

Sydney (2,881)

Melbourne (172)

However between 2006 and 2011 the largest percentage growth in Newcastle resident LDC workers occurred in the Pilbara, increasing by 484% or 92 workers (albeit off a small base). This growth may be attributed to the resources boom that occurred between 2006 and 2011.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

41

Newcastle Top ten destinations for LDC workers in 2011 broken down by industry of employment Top ten places of work for LDC workers living in Newcastle, cross-tabulated by industry of employment in 2011 1

2

3

4

5

6

7

8

9

10

Sydney

Balance NSW

Hunter Valley

Melbourne

Brisbane

Undefined/No Fixed Address - QLD

Pilbara

Public Administration and Safety

13%

7%

4%

7%

8%

0%

0%

54%

3%

0%

Construction

7%

10%

11%

4%

9%

26%

50%

16%

33%

11%

Health Care

9%

14%

5%

9%

5%

9%

0%

7%

0%

4%

Transport, Postal and Warehousing

10%

4%

7%

15%

9%

0%

5%

3%

7%

7%

Manufacturing

8%

6%

6%

15%

8%

5%

9%

0%

3%

19%

Mining

1%

12%

22%

0%

11%

20%

27%

0%

24%

18%

Professional, Scientific and Technical Services

8%

3%

3%

7%

16%

14%

4%

7%

10%

17%

Retail Trade

7%

12%

1%

7%

5%

0%

0%

7%

3%

0%

Education and Training

8%

4%

9%

3%

6%

3%

0%

0%

0%

0%

Wholesale Trade

7%

0%

4%

12%

9%

8%

3%

3%

0%

4%

Accommodation and Food Services

3%

14%

5%

4%

0%

0%

0%

0%

0%

0%

Financial and Insurance Services

5%

1%

0%

2%

5%

0%

0%

3%

0%

0%

Administrative and Support Services

3%

2%

1%

8%

3%

0%

0%

0%

5%

4%

Electricity, Gas, Water and Waste Services

2%

0%

5%

3%

2%

7%

0%

0%

0%

7%

Other Services

2%

2%

4%

0%

0%

3%

0%

0%

3%

0%

Arts and Recreation

2%

2%

0%

2%

2%

0%

0%

0%

0%

7%

Information Media and Telecommunications

2%

0%

1%

0%

0%

0%

0%

0%

0%

0%

Agriculture, Forestry and Fishing

0%

5%

8%

0%

0%

3%

0%

0%

0%

0%

Inadequately Described and Not Stated

1%

0%

2%

2%

3%

3%

3%

0%

7%

4%

Rental, Hiring and Real Estate Services

1%

0%

1%

0%

0%

0%

0%

0%

0%

0%

Industry

Given the relatively flat spread of LDC workers living in Newcastle across the various industries of employment in 2011, the breakdown of top ten destinations by industry exhibits some interesting trends. Of Newcastle’s 5,524 resident LDC workers, the largest group of 604 or 11% were employed in the Public Administration and Safety industry, contrary to the other study regions in which the two largest industries of employment were Mining and Construction. Further still, of this cohort, Sydney as a destination represented 62% or 374 workers - which also represents 13% of those workers commuting from Newcastle to Sydney in 2011.

Canberra- Undefined/No Fixed Queanbeyan Address - WA

Perth

Public Administration and Safety was also the industry of employment of more than half of the 89 workers listing Canberra-Queanbeyan as their workplace destination in 2011 which is not surprising given it is the seat of the government of Australia. Akin to the other study regions, employment in the Mining and Construction industries are well-represented in the top ten destinations for Newcastle’s LDC workforce in 2011, besides Sydney and Melbourne. 111 workers were even making the long commute to the Pilbara from Newcastle in 2011, of which the Construction industry represented half.

Source: KPMG Demographics, Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

42

Appendices

43

Appendix A – Mining region definitions

Mining region

Definition (based on LGAs using ASGC 2011)

Definition (based on LGAs using ASGC 2011)

Banana

Coolgardie

Central Highlands

Kalgoorlie-Boulder

Bowen Basin Isaac

Surat Basin

Mining region

KalgoorlieBoulder

Laverton

Woorabinda

Leonora

Maranoa

Menzies

Toowoomba

Meekatharra Central West

Western Downs

Wiluna

Dungog

Ashburton

Great Lakes

East Pilbara Pilbara

Hunter Valley

Gunnedah

Port Hedland

Liverpool Plains

Roebourne

Muswellbrook

Cloncurry

Singleton

Mount Isa

Upper Hunter Shire

Central South Australia

North-West QLD

McKinlay

Coober Pedy

Burke

Roxby Downs

Doomadgee

Unincorporated Far North (SLA)

Galilee Basin

Barcaldine

Source: KPMG Demographics; Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

44

Appendix B – Technical notes

Long Distance Commuter Worker Definition For the purposes of this Report, LDC workers are defined as those people who travel 100km or more between where they usually live and where they work. LDC workers are often referred to as fly-in / fly-out workers and this refers to workers who travel from their usual place of residence to their place of work which is significantly far enough to make a daily commute impractical. It includes those people who fly-in / fly-out, drive-in / driveout, bus-in / bus-out, ship-in / ship-out or other transport combinations.

As part of this Report, KPMG has considered (and has included or excluded) those SLA centroid to centroid distance calculations that are not meaningful, based on the location of population centres and employment. One example is where the distance calculated between the centroids of the Roxby Downs and Unincorporated Far North SLAs in South Australia is over 200km, however most workers travelling from Roxby Downs to Unincorporated Far North are likely to be commuting to the Olympic Dam mine site, roughly 10km away.

ABS Census Source Data – Introduced Random Error

Long Distance Commuter workforce totals

Tables of Census data are subject to random perturbation to protect the confidentiality of individuals in accordance with the Census and Statistics Act 1905. It is not possible to determine which individual figures from tables of Census data have been affected by random error adjustments.

Source tables of Census data were obtained for journeys to work by industry of employment for the 2006 and 2011 Censuses. Due to the presence of introduced random errors in the source tables, there is a small difference between the total number of LDCs calculated using source data not broken down by industry, and the number of LDCs calculated using source data broken down by industry then summed together to form a total. For the purposes of this Report, all LDC totals presented are the sum of industry level source journey to work data, which preserves additivity of industry level LDC breakdowns provided.

It is important to note that the source data obtained for this Report was done in consultation with the ABS. This is due to the problems associated with aggregating data from small areas to obtain statistics about larger geographical areas where the small areas data table has a very large number of cells (for this Report it was greater than two million per industry group).

Limitations of using ABS Census data to estimate LDC workers Establishing Commuter Travel Distances For this Report source data was obtained from the ABS at the Statistical Local Area (SLA) level. That is, commuters are tagged to an SLA of usual residence and an SLA where they work. In order to determine the distance a commuter travels between an SLA of usual residence and an SLA of work, KPMG has taken a straight line distance between the geographic centroid of each SLA and filtered for only commutes of 100km or more. The shortfall of this methodology is that for SLAs that are geographically very large, the commuting distances may not even closely reflect a typical commute between SLAs where resident population or employment is concentrated in areas other than the geographic centroid.

Although ABS Census data is the one official dataset that enables the collection of LDC worker data by industry of employment and that captures information on commuter flows by geography, it is acknowledged that this data does have its limitations. Due to data collection and classification issues, using ABS Census data is thought to undercount the LDC workforce. Examples of such issues include the Census not capturing people residing overseas and working in Australia, and the difficulty in reaching some persons in remote locations with a Census form.

Source: KPMG Demographics; Based on data from the Australian Bureau of Statistics © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.

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© 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International). Liability limited by a scheme approved under Professional Standards Legislation.