NFPs Provide $55B to Aussie Economy – ABS
Monday, 30th June 2014 at 6:11 pm
Not for Profits have contributed almost $55 billion to the Australian economy and employed more than 1 million people in 2012-2013, new figures by the Australian Bureau of Statistics (ABS) have revealed.
According to the ABS, the contribution is a $22 billion increase compared to figures from 2006-2007. It also revealed Not for Profits received an income of $107.5 billion and held $176 billion worth of assets.
“The types of non-profit institution activities that contributed to total gross value added were education and research (30.9 per cent), social services (19.5 per cent), health and hospitals (18.1 per cent) and culture and recreation (13.2 per cent),” the ABS said.
The data revealed that the main way in which Not for Profits used their income was to pay for labour costs – which came to about $37 billion.
It also shows that social services Not for Profits employed the most people (296,900), followed by education and research Not for Profits (276,300).
“As at 30 June 2013, NPIs [non-profit institutions] held total assets of $175,983m,” the ABS said.
“The majority of these were non-financial assets ($130,387m). When total liabilities held by NPIs of $52,036m are subtracted from total assets, total net worth of NPIs is $123,946m.”
Community Council for Australia Chief Executive Officer David Crosbie said what the new report revealed was that charities were not only the heart of our communities but the heart of the economy.
“Show me another part of our economy that managed to grow at above 8 per cent, per annum even through the GFC,” Crosbie said.
“Instead of being treated as a major contributor to our economy and our community life, the NFP sector is classified as the ‘third sector’ – behind government and business – and its needs are readily dismissed by governments.
“Whether we are talking about the need to retain the Australian Charities and Not-for-profit Commission or the need to free organisations from eight levels of duplicated fundraising red tape around Australia, governments seem to have developed a tin ear approach to the needs of the charities and not-for-profit sector.
“I only hope this data highlighting the economic role played by the charities and the Not for Profit sector leads governments to engage constructively with the sector rather than imposing predetermined agenda’s that suit their narrow political agendas.”
Further details on the ABS statistics can be found here: Australian National Accounts: Non-Profit Institutions Satellite Account.