Western Downs Economic Annual 2016 by Western Downs Regional Council

February 2016

Western Downs Regional Economic Annual

CONTENTS INTRODUCTION .............................................................................................................................................................. 1 REGIONAL SUMMARY .................................................................................................................................................... 2

Key Indicators............................................................................................................................................................................................................................ 2 Overview ....................................................................................................................................................................................................................................... 3 Outlook............................................................................................................................................................................................................................................ 4 Looking for Value (Added): The Case for Higher Productivity ........................................................................................................................ 6

ECONOMIC INDICATORS ............................................................................................................................................... 11

Population...................................................................................................................................................................................................................................11 Gross Regional Product..................................................................................................................................................................................................12 Productivity................................................................................................................................................................................................................................13 Local Business Numbers ..............................................................................................................................................................................................14 Labour Market ........................................................................................................................................................................................................................16 Employment Capacity......................................................................................................................................................................................................18 Building Approvals...............................................................................................................................................................................................................19 Property Market ....................................................................................................................................................................................................................20

INDUSTRY FOCUS ........................................................................................................................................................ 22

Agriculture ..................................................................................................................................................................................................................................22 Mining & Resources..........................................................................................................................................................................................................23

Â© Western Downs Regional Council 2016

Western Downs Regional Economic Annual

INTRODUCTION This report is intended to provide a summary of economic and demographic information about the Western Downs Local Government Area (LGA) as well as providing context and analysis for the performance of the regional economy across a wide range of indicators. The report presents comprehensive coverage and analysis of economic and business conditions for the Western Downs LGA and aims to provide timely and accurate economic data to be used by government and business organizations for planning and decision-making purposes as well as promoting the region as a place to invest and do business. The report presents key economic and other statistical indicators in the following categories: • • • • • • • •

Population Gross Regional Product Productivity Business Numbers & Turnover Labour Market Employment Capacity Building Approvals Property Market

The statistics presented for the Western Downs LGA in this report are benchmarked, where possible, against Queensland as well as other areas where relevant.

Disclaimer The information contained herein is believed to be reliable and accurate. However, no guarantee is given to its accuracy or reliability, and no responsibility or liability for any information, opinions or commentary contained herein, or for any consequence of its use, will be accepted by Lawrence Consulting, or by any person involved in the preparation of its publication. Prepared for Western Downs Regional Council by:

PO Box 2567 Toowoomba QLD 4350 Ph / Fax: +61 7 4613 0206 Mob: 0437 180 566 Email: reuben@lawrenceconsulting.com.au Website: www.lawrenceconsulting.com.au © Western Downs Regional Council 2016

Western Downs Regional Economic Annual

REGIONAL SUMMARY Key Indicators Summary of Recent Economic & Statistical Indicators, Western Downs LGA Reference Period Level Level – Change 12 mths ago POPULATION Estimated resident population Projected population Projected households Average age (yrs) Dependency ratio (%)

Annual % Change

2014 2036 2036 2014 2014

33,653 41,878 19,223 36.9 60.6

33,405 n.a. n.a. 36.6 59.8

+248 +8,384 +5,573 +0.2 +0.8

0.7% 1.0% 1.4% n.a. 0.8%

Sep Qtr 2015 Sep Qtr 2015 Sep Qtr 2015 2014

16,569 4.0 17,259 70.9

17,574 3.3 18,176 67.2

-1,005 +0.7 -917 +3.7

-5.7% 0.7% -5.0% 3.7%

2014/15 2014/15 2014/15 June 2014 2013/14 2013/14

3,173.2 95,760 69.62 4,900 2,230.7 455.2

3,360.2 100,590 72.23 4,811 2,159.1 448.8

-187.1 -4,920 -2.60 +89 +71.6 +6.5

-4.2% -4.9% -3.6% 1.8% 3.3% 1.4%

BUILDING & CONSTRUCTION No. of dwelling approvals Value of dwelling approvals ($’000) Value of non-dwelling approvals ($’000)

Yr to Sep Qtr 2015 Yr to Sep Qtr 2015 Yr to Sep Qtr 2015

73 26,914 52,069

401 106,278 77,693

-328 -79,364 -25,624

-81.8% -74.7% -33.0%

PROPERTY MARKET Median house price ($) Median weekly rent, 3bd house ($) Median weekly rent, 2bd unit ($) Gross rental yield, separate house (%)

Sep Qtr 2015 Sep Qtr 2015 Sep Qtr 2015 Sep Qtr 2015

247,000 230 180 4.8

280,000 300 250 5.6

-33,000 -70 -70 -0.7

-11.8% -23.3% -28.0% -0.7%

Jun Qtr 2015

14.3%

Jun Qtr 2015 Jun Qtr 2015 Jun Qtr 2015

1,493 44% 3,099.1

1,234 64% 4,163.1

+259 -20.1% -1,063.9

21.0% -20.1% -25.6%

2014/15 2014/15 2014/15 December 2015

22,571 759.6 47,766 126.2

22,485 751.1 47,233 146.1

+86 +8.5 +533 -19.9

0.4% 1.1% 1.1% -13.6%

EMPLOYMENT Employed persons (no.) Unemployment rate (%)(a) Labour force (no.) Participation rate (%) BUSINESS INVESTMENT Gross regional product ($ million) Real GRP per capita ($) Productivity ($value added/hr) No. of local businesses Total industry turnover ($ million) Average business turnover ($’000)

TOURISM Hotels, motels & serviced apartments (15+ rooms) Bed spaces (no.) Room occupancy (%)(a): Takings from accommodation ($’000) INCOME & PRICES Per capita income ($) Total income ($ million) Average wage & salary income ($) Average pump price (c/L) Note: (a) Changes are percentage point changes.

Western Downs Regional Economic Annual

Overview Economic Growth The economy of the Western Downs contracted by 4.2%in 2014/15, due largely to the decrease of almost $500 million in direct expenditure of the mining and resources sector and falls in the level of contribution by the agriculture and construction industries. Despite the recent consolidation, the Western Downs region has grown at an average annual rate of 4.0% over the past five years: for the five year period to 2013/14, the Western Downs LGA recorded average annual growth of 7.1%, significantly higher than the rate for Queensland over the same period (2.6%) and third highest of all local government areas with a population in excess of 5,000 persons (behind Mount Isa and Maranoa LGAs).

Population The population of the Western Downs region has grown by almost 2,800 persons over the past five years at a faster rate than the Darling Downs and similar to Queensland. Despite the average age of the population actually reducing over this period, an increase in the share of the population in the 0-9 years and 60 years and over age brackets has had the effect of increasing the dependency ratio for the region (i.e. the ratio of persons aged outside the labour force range of 15-64 years to those in this age bracket) by 2.6 percentage points to 60.6%, higher than the average for Queensland (51.0%). This ratio is important because as it increases, there is increased strain on the productive part of the population to support the upbringing and pensions of the economically dependent.

Employment The labour market in the Western Downs LGA weakened considerably in 2015 with the loss of over 1,000 jobs to employed residents and the highest unemployment rate (4.0%) recorded since the March Quarter 2011, although this remains significantly lower than the averages for Queensland (6.5%) and Australia (6.2%). Labour force participation remains high (70.9%), well above the respective average for Queensland (64.7%), although this has been exacerbated by the decline in the size of the labour force in recent years, despite a growing population.

Housing & Construction Projections indicate that there will be more than 5,500 new households added to the Western Downs over the period to 2036. Housing costs are almost 60% lower in the region when compared to the Brisbane LGA, with a median house price of $247,000, which, along with large falls in rental and petrol prices over the past twelve months, have combined to significantly ease cost of living pressures. Mirroring the overall economic contraction in the region, the number and value of both residential and non-residential building approvals fell significantly in 2015, indicating a slowing down of the construction sector and development pipeline.

Income & Prices Despite the Western Downs LGA recording a significantly higher GRP per capita ($95,670) in 2014/15 than the average for Queensland ($63,584), the region has lower per capita and household income levels than both Queensland and Australia. Per capita income in the region is approximately 20% lower than Queensland, signifying that the flow-on of income to households from activity generated in the region remains slow.

ÂŠ Western Downs Regional Council 2016

Western Downs Regional Economic Annual

Outlook The outlook for the economy of the Western Downs for 2016 is mixed and ultimately is related largely to external factors such as commodity prices and the subsequent level of production in key industries such as agriculture and resources. The regional economy has witnessed a significant resetting in 2015, as evidenced by a number of factors – which were flagged as concerns twelve months ago – specifically: •

Recent weakening in the labour market, specifically a drop in the number of employed persons in five consecutive quarters to the September Quarter 2015. Whilst the rate of decline has slowed marginally, should this trend continue and not reverse in the first two quarters of 2016 it could lead to lowering of projections for economic growth and productivity in 2015/16;

•

The decline in the number and value of both residential and non-residential building approvals in 2015 compared with the previous three years, effectively contracting the development pipeline with ramifications for the construction industry;

•

The significant decrease in occupancy rates at tourism accommodation establishments, signifying a drop in the level of contract workers travelling to the region for work; and

•

The fall in median house prices in recent quarters, although this has the contrasting effect of improving housing affordability in the region.

The outlook for commodity prices for 2016 shows forecast declines of varying scale in the energy and agriculture sector. Commodity Prices Forecast (Nominal US$) Commodity

Unit

Energy Coal, Australia Crude oil, avg spot Natural gas, Europe Natural gas, US Natural gas, Japan

$/mt $/bbl $/mmbtu $/mmbtu $/mmbtu

Agriculture (selected) Barley Maize Wheat, US Meat, beef Meat, chicken Sugar Cotton Soybeans

$/mt $/mt $/mt $/kg $/kg $/kg $/kg $/mt

2013

2014

2015

2016

2017

84.6 104.1 11.79 3.73 15.96

70.1 96.2 10.05 4.37 16.04

57.5 50.8 7.26 2.61 10.43

50.0 37.0 6.00 2.50 8.50

51.9 48.0 6.19 3.00 8.75

202 259 312 4.07 2.29 0.39 1.99 538

138 193 285 4.95 2.43 0.37 1.83 492

194 170 203 4.42 2.53 0.30 1.56 391

195 170 185 3.90 2.50 0.35 1.60 400

195 175 193 3.93 2.46 0.35 1.66 412

Forecasts 2018

2019

2020

53.9 51.4 6.40 3.50 9.00

55.9 54.9 6.60 3.68 9.26

58.1 58.8 6.82 3.88 9.53

196 180 201 3.96 2.43 0.36 1.72 424

197 185 210 4.00 2.40 0.36 1.78 437

197 191 219 4.03 2.36 0.36 1.84 449

Source: World Bank

The business confidence survey for the Toowoomba and Surat Basin region conducted by Lawrence Consulting showed that businesses in the Western Downs LGA are anticipating significantly improved trading conditions and performance of the regional economy over the short- (next six months) and medium-term (next three years): •

Business confidence has strengthened since previous survey, despite a continued downturn in operating conditions over the past six months, which was in contrast to expectations

•

The Agriculture sector continues to perform strongly, whilst Manufacturing experienced a significant turnaround in the past six months. All industry sectors are anticipating improvement in business outcomes

•

Outlook for businesses over medium-term (3 years) is significantly stronger than expectations for next six months (although these are still highly positive), whilst projections for the regional economy have also improved markedly

Western Downs Regional Economic Annual

•

Indices for sales, profits and staffing fell significantly during the past six months, but expected to increase over coming six months

•

The most important issues viewed by CEOs of a wide range including local, state, domestic and international factors included: − Declining customer base − Government policy and regulation − Local government leadership and efficiency − Broadband and IT access − Difficulty attracting and retaining skilled employees

•

Local markets represented the most common areas for growth opportunities and also strengthened over the past six months at the expense of Brisbane and interstate markets

Indicator (Index)

Business Confidence Summary Dalby Aug 2015 Feb 2015 % change

Aug 2015

Chinchilla Feb 2015

% change

Business conditions: Past six months Next six months Next three years

91.7 109.2 132.4

84.5 104.5 123.6

+7.1 +4.7 +8.8

62.5 112.5 145.8

77.4 106.7 117.7

-14.9 +5.8 +28.1

Regional economic conditions: Next six months Next three years

89.2 105.4

79.1 97.3

+10.1 +8.1

91.7 115.3

83.3 101.6

+8.3 +13.7

Western Downs Regional Economic Annual

Looking for Value (Added): The Case for Higher Productivity The economy of the Western Downs LGA is in an interesting, and arguably vulnerable, position currently given the transition from the construction phase of the coal seem gas industry in the region to operating phase has been severely impacted by the recent downturn in the resource sector, driven by lower global demand and subsequent lower commodity prices. Good economic policy, particularly in light of current conditions, suggests that regional economies should diversify to alleviate flow-on impacts of downturns in sectors that enjoy high concentration (e.g. mining, agriculture), especially towards industries that have higher levels of productivity and therefore the potential to increase gross regional product. Identifying which industries to target for the Western Downs LGA involves an analysis of the whole structure of the regional economy, particularly on the basis of productivity, concentration and contribution to GRP, a summary of which is provided in the following industry productivity matrix. The matrix is highly instructive as it shows a number of key points: •

Of the four industry sectors with high concentration (i.e. location quotient higher than 1) in the Western Downs, three are also considered as high productivity (i.e. sector productivity level higher than the average productivity across all industries ($69.62)), that also make significant contributions to GRP, specifically: − Mining − Electricity, Gas, Water & Waste Services − Construction

•

Conversely, there are four sectors with high productivity but comparatively low concentration or representation within the regional economy that could be targeted for growth given their potential to increase GRP: − Financial & Insurance Services − Information Media & Telecommunications − Wholesale Trade − Rental, Hiring & Real Estate Services

•

The Financial & Insurance Services and Information Media & Telecommunications sectors in particular have significant scope to grow given their lower location quotients (0.36 and 0.25, respectively) and contributions to GRP ($57.5 million and $21.6 million, respectively). These sectors, however, may be affected by the proximity of the Western Downs LGA to Toowoomba, which is the larger regional centre for the broader Darling Downs and South West region

•

Other sectors which have productivity levels below but close to the regional average and therefore also desirable for expansion and increasing their concentration and contribution to GRP include: − Transport, Postal & Warehousing − Public Administration & Safety − Manufacturing

A separate analysis was conducted by Lawrence Consulting to determine which industry sub-sector provided the largest capacity for value-adding as determined by the employment multiplier effect of adding 1 additional full-time equivalent employee; the industries previously identified should be closely considered when looking at this analysis in considering which to target for investment.

Western Downs Regional Economic Annual

Low concentration

Industry Productivity Matrix High concentration

Financial & insurance services (Productivity = $171.97GRP/hr worked); Location quotient = 0.36; Contribution to GRP = $57.5M) Mining ($151.86; 3.99; $560.2M) Electricity, gas, water & waste services ($148.46; 2.34; $198.7M) High productivity

Information media & telecommunications ($130.03; 0.25; $21.6M) Wholesale trade ($101.64; 0.69; $145.8M) Rental, hiring & real estate services ($90.27; 0.65; $108.4M) Construction ($69.07; 1.22; $283.3M)

Transport, postal & warehousing ($61.79; 0.77; $176.6M) Public administration & safety ($61.34; 0.71; $160.8M) Agriculture, forestry & fishing ($59.88; 7.23; $285.0M) Manufacturing ($58.74; 0.65; $217.9M) Education & training ($46.99; 0.90; $95.3M) Health care & social assistance ($46.09; 0.69; $91.8M) Low productivity Administrative & support services ($41.86; 0.43; $27.1M) Professional, scientific & technical services ($41.03; 0.47; $54.0M) Retail trade ($32.64; 0.98; $103.4M) Other services ($30.02; 0.87; $70.8M) Arts & recreation services ($28.08; 0.31; $8.0M) Accommodation & food services ($25.27; 0.94; $60.1M)

ÂŠ Western Downs Regional Council 2016

Western Downs Regional Economic Annual

The following table shows the employment multiplier effects for all industry sub-sectors or classes within Western Downs that employed at least 1 person as at the 2011 Census. The table is ranked in descending order by employment multiplier, i.e. the total number of jobs or FTEs supported based on an increase of 1 FTE in each particular industry class (inclusive of the direct FTE). The table also shows the corresponding location quotient for each industry class, along with the increase in turnover required to generate 1 additional FTE (expressed in $ million).

Industry division

Oils and Fats Manufacturing Non-Residential Building Construction Heavy and Civil Engineering Construction Petroleum and Coal Product Manufacturing Electricity Generation Coal mining Oil and gas extraction Basic Chemical Manufacturing Tanned Leather, Dressed Fur and Leather Product Manufacturing Exploration and Mining Support Services Sawmill Product Manufacturing Agriculture, Forestry and Fishing Support Services Gas Supply Textile Manufacturing Structural Metal Product Manufacturing Metal Containers and Other Sheet Metal Product manufacturing Water, Pipeline and Other Transport Rental and Hiring Services (except Real Estate) Non-Residential Property Operators and Real Estate Services Residential Building Construction Construction Services Specialised and other Machinery and Equipment Manufacturing Aquaculture Poultry and Other Livestock Electricity Transmission, Distribution, On Selling and Electricity Market Operation Other Agriculture Plaster and Concrete Product Manufacturing Grain Mill and Cereal Product Manufacturing Non Metallic Mineral Mining Road Transport Public Administration and Regulatory Services Sheep, Grains, Beef and Dairy Cattle Forestry and Logging Iron and Steel Manufacturing Soft Drinks, Cordials and Syrup Manufacturing Wholesale Trade Water Supply, Sewerage and Drainage Services Meat and Meat product Manufacturing Other Food Product Manufacturing Other Wood Product Manufacturing Accommodation Transport Support services and storage Automotive Repair and Maintenance

ÂŠ Western Downs Regional Council 2016

Employment Multipliers Total FTEs supported by increase in 1 direct FTE (inclusive) 4.87 4.69 4.24 3.80 3.69 3.68 3.40 3.38 3.03

Location quotient

2.22 1.06 3.34 1.50 6.64 4.81 17.25 2.02 2.72

$M output increase needed to generate 1 FTE 1.18 0.81 0.69 3.10 1.17 0.89 1.70 0.81 0.57

3.00 2.61 2.47

3.43 2.95 4.03

0.51 0.42 0.44

2.45 2.41 2.33 2.29

11.60 1.19 1.22 2.00

0.53 0.42 0.48 0.44

2.19 2.17 2.15

1.34 0.76 0.65

0.49 0.32 0.33

2.09 2.07 2.05

0.76 1.08 3.24

0.23 0.32 0.29

2.04 1.98 1.92

1.06 4.72 2.05

0.38 0.37 0.70

1.80 1.79 1.78 1.77 1.76 1.75 1.73 1.72 1.68 1.64 1.63 1.57 1.55 1.55 1.48 1.47 1.46 1.46

2.38 0.65 0.29 1.31 1.07 0.83 10.34 1.05 1.28 0.36 0.70 0.49 0.28 0.38 0.67 1.90 0.36 1.14

0.31 0.29 0.16 0.36 0.20 0.14 0.21 0.63 0.32 0.21 0.20 0.27 0.11 0.17 0.15 0.12 0.20 0.15

Western Downs Regional Economic Annual

Industry division

Oils and Fats Manufacturing Other Fabricated Metal Product manufacturing Motor Vehicles and Parts; Other Transport Equipment manufacturing Postal and Courier Pick-up and Delivery Service Bakery Product Manufacturing Other Repair and Maintenance Retail Trade Public Order and Safety Finance Professional, Scientific and Technical Services Library and Other Information Services Aircraft Manufacturing Insurance and Superannuation Funds Telecommunication Services Other Services Primary and Secondary Education Services (incl Pre-Schools and Special Schools) Publishing (except Internet and Music Publishing) Food and Beverage Services Sports and Recreation Employment, Travel Agency and Other Administrative Services Furniture Manufacturing Building Cleaning, Pest Control and Other Support Services Personal Services Residential Care and Social Assistance Services Rail Transport Heritage, Creative and Performing Arts Health Care Services Glass and Glass Product Manufacturing Textile Product Manufacturing Basic Non-Ferrous Metal Manufacturing Polymer Product Manufacturing Arts, Sports, Adult and Other Education Services (incl community education) Air and Space Transport Clothing Manufacturing Gambling Motion Picture and Sound Recording Waste Collection, Treatment and Disposal Services Printing (including the reproduction of recorded media) Auxiliary Finance and Insurance Services Computer Systems Design and Related Services Technical, Vocational and Tertiary Education Services (incl undergraduate and postgraduate) Defence

Employment Multipliers Total FTEs supported by increase in 1 direct FTE (inclusive) 4.87 1.45 1.40

Location quotient

2.22 0.68 0.45

$M output increase needed to generate 1 FTE 1.18 0.22 0.16

1.39 1.38 1.37 1.36 1.35 1.35 1.32 1.29 1.27 1.26 1.25 1.23 1.22

0.75 0.85 1.11 0.99 0.70 0.48 0.54 1.10 0.58 0.32 0.20 0.63 1.29

0.13 0.11 0.13 0.10 0.08 0.27 0.12 0.21 0.18 0.13 0.13 0.08 0.08

1.19

0.34

0.13

1.19 1.19 1.19

0.72 0.38 0.27

0.07 0.07 0.08

1.18 1.16

0.37 0.61

0.06 0.05

1.14 1.13 1.12 1.12 1.11 1.11 1.11 1.10 1.10 1.10

0.66 0.75 0.22 0.33 0.64 0.23 0.24 0.14 0.15 0.61

0.06 0.07 0.07 0.05 0.06 0.06 0.05 0.20 0.05 0.04

1.09 1.08 1.05 1.05 1.04

0.11 0.19 0.08 0.09 0.29

0.05 0.04 0.02 0.03 0.05

1.03

0.11

0.03

1.03 1.02

0.22 0.05

0.08 0.01

1.02

0.12

0.02

1.01

0.03

0.01

The industry classes that have the highest employment multiplier impacts are shown in the following graph; note with the exception of the last two classes (i.e. Rental and Hiring Services (except Real Estate); and Non-Residential Property Operators and Real Estate Services), all of these industries have a higher industry concentration (i.e. location quotient greater than 1) than the national average.

ÂŠ Western Downs Regional Council 2016

Western Downs Regional Economic Annual

Employment Multipliers, Top 20 Industry Classes Western Downs (FTEs) Oils and Fats Manufacturing Non-Residential Building Construction Heavy and Civil Engineering Construction Petroleum and Coal Product Manufacturing Electricity Generation Coal mining Oil and gas extraction Basic Chemical Manufacturing Tanned Leather, Dressed Fur and Leather Product Manufacturing Exploration and Mining Support Services Sawmill Product Manufacturing Agriculture, Forestry and Fishing Support Services Gas Supply Textile Manufacturing Structural Metal Product Manufacturing Metal Containers and Other Sheet Metal Product manufacturing Water, Pipeline and Other Transport Rental and Hiring Services (except Real Estate) Non-Residential Property Operators and Real Estate Services Residential Building Construction 0.0

1.0

2.0

3.0

4.0

5.0

The following table shows those industry classes with the highest employment multiplier impacts whose location quotient less than 1, i.e. are considered low concentration within Western Downs LGA and could be targeted for expansion.

Employment Multipliers, Top 20 Industry Classes (Location Quotient < 1) Western Downs (FTEs) Rental and Hiring Services (except Real Estate) Non-Residential Property Operators and Real Estate Services Residential Building Construction Plaster and Concrete Product Manufacturing Public Administration and Regulatory Services Wholesale Trade Other Wood Product Manufacturing Other Fabricated Metal Product manufacturing Postal and Courier Pick-up and Delivery Service Bakery Product Manufacturing Retail Trade Public Order and Safety Aircraft Manufacturing Other Services Food and Beverage Services Building Cleaning, Pest Control and Other Support Services Personal Services Residential Care and Social Assistance Services Health Care Services Arts, Sports, Adult and Other Education Services (incl community education) 0.0

ÂŠ Western Downs Regional Council 2016

1.0

2.0

3.0

Western Downs Regional Economic Annual

ECONOMIC INDICATORS Population The estimated resident population of the Western Downs LGA was 33,653 in June 2014, an increase of 248 persons from the level recorded in June 2013 (33,405). This represented growth of 0.7% over the year to June 2014, which was lower than the averages for the Darling Downs (0.9%) and Queensland (1.5%). Over the past five years, the Western Downs LGA has experienced an increase in population of 2,760 persons – or average annual growth of 1.7% – which was higher than the growth rate for the Darling Downs (1.2%), but slightly lower than Queensland (1.8%). Over the period to 2036, the population of the Western Downs LGA is expected to increase by 8,225 persons – or an average annual rate of 1.0% – to approximately 41,878 persons. The growth rate for the Western Downs LGA is slightly below that forecast for the Darling Downs (1.2%) and Queensland (1.9%).

Population Western Downs LGA 50,000

3.0% Population level

Ann % chg (Western Downs)

Ann % chg (Qld)

40,000

2.4%

30,000

1.8%

20,000

1.2%

10,000

0.6%

0.0% 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2016f

2021f

2026f

2031f

2036f

Note: f = forecast Source: ABS 3218.0, OESR, Lawrence Consulting

Estimated Residential Population Level Annual 5-Year 2014 % change Ann % chg 33,653 17682 7,678 3,977 4,297

0.7 -0.1 2.9 2.6 -1.4

1.7 1.7 3.3 0.2 0.9

41,878 21956 9,979 4,752 5,190

Avg ann % growth 2014-36 1.0 1.0 1.2 0.8 0.9

242363 4,722,447

0.9 1.5

1.2 1.8

316101 7,095,177

1.2 1.9

Western Downs (R) Wambo Chinchilla Murilla-Wandoan Tara Darling Downs Queensland

Level 2036

Source: ABS 3218.0, OESR, Lawrence Consulting

Western Downs Regional Economic Annual

Gross Regional Product The Gross Regional Product (GRP) of the Western Downs LGA was estimated at approximately $3.2 billion in 2014/15, representing a real annual decline of 4.2%, which was in contrast to the small average increase for Queensland (0.5%). Over the past five years, the economy of the Western Downs has grown at an average annual rate of 4.0%, which was higher than Queensland (2.4%). With regard to industry, the largest contribution was made by the Mining industry, with approximately $560.2 million, or 17.7% of the total GRP, followed by the Agriculture, Forestry & Fishing (9.0%), Construction (8.9%), Manufacturing (6.9%) and Electricity, Gas, Water & Waste Services (6.3%) sectors.

Gross Regional Product Western Downs LGA ($ million), 2014/15 Arts & recreation services Information media & telecommunications Administrative & support services Professional, scientific & technical services Financial & insurance services Accommodation & food services Other services Health care & social assistance Education & training Retail trade Rental, hiring & real estate services Wholesale trade Public administration & safety Transport, postal & warehousing Electricity, gas, water & waste services Manufacturing Construction Agriculture, forestry & fishing Mining

Goods Sector Services Sector

100

200

300

400

500

600

Source: Lawrence Consulting

Industry

Agriculture, forestry & fishing Mining Manufacturing Electricity, gas, water & waste services Construction Wholesale trade Retail trade Accommodation & food services Transport, postal & warehousing Information media & telecommunications Financial & insurance services Rental, hiring & real estate services Professional, scientific & technical services Administrative & support services Public administration & safety Education & training Health care & social assistance Arts & recreation services Other services Total Industry Value Added

Gross Regional Product Western Downs Level % of Ann Avg ann 2014/15 total % chg % chg ($ million) last 5 yrs 285.0 9.0 -11.8 -8.3 560.2 17.7 -26.6 4.2 217.9 6.9 73.9 23.8 198.7 6.3 57.6 2.1 283.3 8.9 -50.6 -3.0 145.8 4.6 135.8 12.4 103.4 3.3 -3.7 6.3 60.1 1.9 53.6 9.2 176.6 5.6 22.2 21.3 21.6 0.7 52.5 1.2 57.5 1.8 -8.8 3.9 108.4 3.4 99.0 33.5 54.0 1.7 15.5 -6.0 27.1 0.9 11.2 -1.4 160.8 5.1 -8.9 20.1 95.3 3.0 62.4 -7.8 91.8 2.9 -21.5 2.8 8.0 0.3 691.8 11.7 70.8 2.2 65.4 20.7 2,726.1 85.9 -4.6 4.1

Ownership of dwellings Taxes less subsidies on production & imports Statistical discrepancy Gross Regional Product Source: Lawrence Consulting

Level 2014/15 ($ million) 8,227 20,525 20,255 9,601 33,275 13,833 14,635 7,834 16,463 5,093 18,008 8,693 14,093 7,285 16,842 14,068 21,925 1,796 6,070 258,521

Queensland % of Ann total % chg 2.7 6.7 6.6 3.1 10.9 4.5 4.8 2.6 5.4 1.7 5.9 2.8 4.6 2.4 5.5 4.6 7.2 0.6 2.0 84.7

4.9 8.3 1.0 6.5 -12.5 0.1 0.0 5.3 -0.1 13.2 5.8 0.6 -5.9 -5.5 2.2 1.2 4.2 2.5 3.6 0.4

Avg ann % chg last 5 yrs 0.3 3.4 0.3 0.8 4.9 1.0 2.1 3.3 2.5 3.7 3.4 3.7 0.3 -0.2 3.3 1.6 4.2 0.6 0.8 2.4

246.0 201.8 -0.8

7.8 6.4 0.0

-0.4 -4.7

4.0 2.9

27,490 19,421 -78

9.0 6.4 0.0

2.3 0.0

1.9 1.2

3,173.2

100.0

-4.2

4.0

305,354

100.0

0.5

2.4

ÂŠ Western Downs Regional Council 2016

Western Downs Regional Economic Annual

Productivity Productivity is a key component of economic growth and is a measure of the efficiency of production within a region. Dividing the GRP of a region by total hours worked will measure the labour productivity within that region, i.e. the average amount of output produced by an hour worked by a person within that region. Western Downs LGA recorded total industry productivity (or industry value added per hour worked) of approximately $69.62 in 2014/15, which represented a decrease of 3.6% over the average productivity for 2013/14 ($72.23). The Western Downs LGA recorded a higher total industry productivity average than Queensland ($62.92) in 2014/15, although the State recorded a lower rate of negative growth (-0.2%).

Industry Productivity Western Downs LGA ($value added/hr worked), 2014/15 Accommodation & food services Arts & recreation services Other services Retail trade Professional, scientific & technical services Administrative & support services Health care & social assistance Education & training Manufacturing Agriculture, forestry & fishing Public administration & safety Transport, postal & warehousing Construction Total Industry Rental, hiring & real estate services Wholesale trade Information media & telecommunications Electricity, gas, water & waste services Mining Financial & insurance services $0

$50

$100

$150

$200

Source: Lawrence Consulting

Industry

Productivity Western Downs Level Annual 2014/15 change ($ value ($) added/hr) 59.88 2.94 151.86 33.08 58.74 4.16 148.46 12.38 69.07 -5.15 101.64 -2.24 32.64 1.97 25.27 -3.70 61.79 0.47 130.03 14.13 171.97 -6.68 90.27 -0.25 41.03 -7.47 41.86 -3.45 61.34 1.15 46.99 -0.70 46.09 0.51 28.08 -1.09 30.02 0.24

Total Industry Source: Lawrence Consulting

ÂŠ Western Downs Regional Council 2016

69.62

-2.60

Annual % change

5.2 27.8 7.6 9.1 -6.9 -2.2 6.4 -12.8 0.8 12.2 -3.7 -0.3 -15.4 -7.6 1.9 -1.5 1.1 -3.7 0.8

Level 2014/15 ($ value added/hr) 65.07 157.64 60.63 175.78 72.89 100.01 37.06 30.13 69.78 107.96 169.55 96.98 42.55 51.72 60.18 46.90 44.16 26.86 32.38

-3.6

62.92

Queensland Annual change ($)

Annual % change

3.38 34.55 4.30 17.67 -5.74 -2.79 2.49 -3.59 1.57 9.99 -6.15 0.96 -7.66 -1.90 0.98 -0.73 0.29 -0.74 0.49

5.5 28.1 7.6 11.2 -7.3 -2.7 7.2 -10.6 2.3 10.2 -3.5 1.0 -15.2 -3.5 1.7 -1.5 0.7 -2.7 1.5

-0.10

-0.2

Western Downs Regional Economic Annual

Local Business Numbers The most recent Australian Business Register indicated there were 4,900 local businesses operating in the Western Downs LGA in June 2014 (i.e. those whose registered place of business is within the region), which represented an increase of 1.8% from the level recorded in 2013 (4,811). In terms of business numbers by industry, the Agriculture, Forestry & Fishing sector was the largest, with 47.1% of total businesses, followed by Construction (11.2%), Rental, Hiring & Real Estate Services (7.6%), Transport, Postal & Warehousing (5.8%) and Retail Trade (4.3%).

Businesses by Industry Western Downs LGA (% of total businesses), June 2014 Agriculture, forestry & fishing Mining Manufacturing Electricity, gas, water & waste services Construction Wholesale trade Retail trade Accommodation & food services Transport, postal & warehousing Information media & telecommunications Financial & insurance services Rental, hiring & real estate services Professional, scientific & technical services Administrative & support services Public administration & safety Education & training Health care & social assistance Arts & recreation services Other services Non classifiable industry 0%

10%

20%

30%

40%

50%

Source: ABS 8165.0, Lawrence Consulting

The estimated total industry turnover for all local businesses in the Western Downs LGA was $2.2 billion in 2013/14 – representing an annual increase of 3.3% – with the largest contributions made by the Agriculture, Forestry & Fishing ($910.1 million), Construction ($280.9 million) and Retail Trade ($198.3 million) sectors.

Industry Division Agriculture, forestry & fishing Mining Manufacturing Electricity, gas, water & waste services Construction Wholesale trade Retail trade Accommodation & food services Transport, postal & warehousing Information media & telecommunications Financial & insurance services Rental, hiring & real estate services Professional, scientific & technical services Administrative & support services Public administration & safety Education & training Health care & social assistance Arts & recreation services Other services Non classifiable industry Total, 2013/14 Total, 2012/13 Annual % change Source: ABS 8165.0, Lawrence Consulting

Businesses by Industry Level % of June 2014 total 2,306 47.1 23 0.5 137 2.8 9 0.2 548 11.2 83 1.7 213 4.3 102 2.1 286 5.8 6 0.1 197 4.0 374 7.6 156 3.2 61 1.2 19 0.4 12 0.2 73 1.5 31 0.6 185 3.8 79 1.6 4,900 4,811 1.8

100.0

Total turnover ($ million) 910.1 18.2 82.9 6.2 280.9 67.2 198.3 82.1 142.0 1.1 53.0 132.5 63.9 19.7 10.8 1.4 47.7 3.2 80.7 29.1

% of total 40.8 0.8 3.7 0.3 12.6 3.0 8.9 3.7 6.4 0.1 2.4 5.9 2.9 0.9 0.5 0.1 2.1 0.1 3.6 1.3

Avg. turnover ($’000) 394.6 791.3 605.3 683.3 512.5 809.0 931.0 804.7 496.6 187.5 269.2 354.3 409.3 322.1 565.8 118.8 653.1 101.6 436.4 368.0

2,230.7 2159.1 3.3

100.0

455.2 448.8 1.4

Western Downs Regional Economic Annual

The average turnover of all local businesses in the Western Downs LGA grew annually by 1.4% to approximately $455,200 in 2013/14, with the Retail Trade sector recording the highest average industry turnover ($931,000), followed by Wholesale Trade ($809,000), Accommodation & Food Services ($804,700) and Mining ($791,300).

Average Industry Turnover Western Downs LGA ($'000), 2013/14 Arts & recreation services Education & training Information media & telecommunications Financial & insurance services Administrative & support services Rental, hiring & real estate services Non classifiable industry Agriculture, forestry & fishing Professional, scientific & technical services Other services All industries Transport, postal & warehousing Construction Public administration & safety Manufacturing Health care & social assistance Electricity, gas, water & waste services Mining Accommodation & food services Wholesale trade Retail trade 0

200

400

600

800

1,000

Source: ABS 8165.0, Lawrence Consulting

With regard to turnover, the largest proportion of businesses recorded annual turnover in the $0-$99,999 range (40.6%), followed by the $200,000-$499,999 (20.3%) and $500,000-$2 million (16.2%) turnover ranges. Approximately 7.0% of businesses in the Western Downs LGA recorded annual turnover in excess of $2 million in 2013/14.

Businesses by Turnover Western Downs LGA, 2013/14

$500,000-$2 million 16.2%

$2+ million 7.0% $0-$99,999 40.6%

$200,000-$499,999 20.3%

$100,000-$199,999 15.9%

Source: ABS 8165.0, Lawrence Consulting

ÂŠ Western Downs Regional Council 2016

Western Downs Regional Economic Annual

Labour Market The estimated number of employed persons in the Western Downs LGA was 16,569 in the September Quarter 2015, representing an annual decrease of 5.7% from the level recorded in the September Quarter 2014 (17,574). This also represented the fifth consecutive quarter of negative employment growth for the region.

Annual Employment Growth Western Downs LGA 8% 6% 4% 2% 0% -2% -4% -6% -8% Sep-10

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

Sep-13

Mar-14

Sep-14

Mar-15

Sep-15

Source: DEEWR, Lawrence Consulting

The unemployment rate in the Western Downs LGA was 4.0% in the September Quarter 2015, which was 0.7 percentage points higher than the rate recorded in the September Quarter 2014 (3.3%). The unemployment rate in the Western Downs LGA in the September Quarter 2015 was significantly lower than the averages for Queensland (6.5%) and Australia (6.2%).

Unemployment Rate 8% Western Downs

Queensland

Australia

0% Sep-10

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

Sep-13

Mar-14

Sep-14

Mar-15

Sep-15

Source: DEEWR, Lawrence Consulting

ÂŠ Western Downs Regional Council 2016

Western Downs Regional Economic Annual

With regard to the labour force, the Western Downs LGA experienced a decrease of 5.0% over the past twelve months to a level of 17,259 persons in the September Quarter 2015, which was in contrast to the low average growth for Queensland (0.5%). The number of unemployed persons in the Western Downs LGA increased by 14.6% over the year to the September Quarter 2015, which was greater than the average increase of 4.7% for Queensland.

Labour Force Western Downs LGA 20,000 Employed

Unemployed

18,000

16,000

14,000

12,000

10,000 Sep-10

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

Sep-13

Mar-14

Sep-14

Mar-15

Sep-15

Source: DEEWR, Lawrence Consulting

Employed persons (no.) Unemployed (no.) Unemployment rate(a) (%) Labour force (no.)

Labour Market Western Downs Level Ann Sep Qtr 2015 % chg 16,569 -5.7 690 14.6 4.0 0.7 17,259 -5.0

Queensland Level Sep Qtr 2015 2,329,161 161,087 6.5 2,490,248

Ann % chg 0.2 4.7 0.3 0.5

Note: (a) Unemployment rate changes are percentage point changes. Source: DEEWR, Lawrence Consulting

ÂŠ Western Downs Regional Council 2016

Western Downs Regional Economic Annual

Employment Capacity The participation rate (i.e. the proportion of the resident population aged 15 and over in the labour force) in the Western Downs LGA was 70.9% in 2014, representing an increase of 3.7 percentage points from the average for 2013 (67.2%), whilst also being higher than the average for Queensland (64.7%). The dependency ratio – i.e. the ratio of the economically-dependent proportion of the population to the productive part – in the Western Downs LGA was 60.6% in 2014, which was higher than the average for Queensland (51.0%).

Participation Rate 75% Western Downs

Queensland

70%

65%

60%

55% 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Source: ABS 3235.0, DEEWR & Lawrence Consulting

Level (%) 2014

Employment Capacity Level (%) Annual 2013 % change (a)

Level 2009

% change 2009-13(a)

Participation rate Western Downs Queensland

70.9% 64.7%

67.2% 65.0%

3.7% -0.3%

69.0% 65.6%

1.8% -0.9%

Dependency ratio Western Downs Queensland

60.6% 51.0%

59.8% 50.3%

0.8% 0.7%

58.0% 48.2%

2.7% 2.8%

Note: (a) Changes are percentage point changes. Source: ABS 3235.0, DEEWR & Lawrence Consulting

Dependency Ratio 70% Western Downs

Queensland

65%

60%

55%

50%

45%

40% 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Source: ABS 3235.0, DEEWR & Lawrence Consulting

Western Downs Regional Economic Annual

Building Approvals The total number of residential building (or dwelling) approvals in the Western Downs LGA was 73 in the year to the September Quarter 2015, which represented a significant annual decrease of 81.8% from the total recorded in the year to the September Quarter 2014 (401). The total value of residential building approvals in the Western Downs LGA in the year to the September Quarter 2015 was approximately $26.9 million, a decrease of 74.7% from the level recorded in the year to the September Quarter 2014 ($106.3 million). The total value of non-residential building approvals in the Western Downs LGA was approximately $52.1 million in the year to the September Quarter 2015, representing an annual decrease of 33.0% from the level recorded in the year to the September Quarter 2014 ($77.7 million).

Number of Dwelling Approvals Western Downs LGA 500 New Houses

Other Dwelling Units

400

300

200

100

0 Yr to Sep-05

Yr to Sep-06

Yr to Sep-07

Yr to Sep-08

Yr to Sep-09

Yr to Sep-10

Yr to Sep-11

Yr to Sep-12

Yr to Sep-13

Yr to Sep-14

Yr to Sep-15

Source: ABS 8731.3

Building Approvals Western Downs Level Annual Yr to Dec Qtr % change 2014 Dwelling Approvals (no.) New houses Other dwellings Total

Queensland Level Annual Yr to Dec Qtr % change 2014

61 12 73

-75.3 -92.2 -81.8

22,291 23,101 45,392

7.0 30.2 17.7

Dwelling Approvals, Value ($’000) New houses Other dwellings Alterations & additions Total

17,230 3,265 6,419 26,914

-74.4 -90.2 12.3 -74.7

6,059,703 5,672,658 1,291,205 13,033,829

8.4 35.4 8.6 18.8

Non-Residential Building Approvals, Value ($’000) Private Sector Public Sector Total

48,783 3,286 52,069

-32.8 -36.1 -33.0

4,796,202 696,276 5,492,477

-4.6 -34.2 -9.7

Total Building Approvals, Value ($’000)

78,984

-57.1

18,526,305

8.6

Source: ABS 8731.3

Western Downs Regional Economic Annual

Property Market The median house price in the Western Downs LGA was $247,000 in the September Quarter 2015, representing an annual decrease of 11.8% over the level recorded in the September Quarter 2014 ($280,000). The median price for houses in the Western Downs LGA over the year to September 2015 was also $247,000, which represented a decrease of 6.8% over the past five years.

Median House Price Western Downs LGA ($'000) 700 Western Downs

Brisbane

600 500 400 300 200 100 0 Sep-10

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

Sep-13

Mar-14

Sep-14

Mar-15

Sep-15

Source: REIQ

Median House Prices

Level ($) Sep Qtr 2015

Western Downs Maranoa Toowoomba Goondiwindi Southern Downs South Burnett Scenic Rim Brisbane

247,000 353,000 n.a. 190,000 245,000 182,000 385,000 615,000

Property Market Annual Level ($) % change Yr to Sep 2015 -11.8 4.0 n.a. -23.4 1.0 -9.0 14.5 6.0

Annual % change

5 year % change

-11.5 5.2 -5.2 -1.0 -6.6 -6.4 5.4 6.6

-6.8 20.5 5.8 -1.8 -2.7 -20.3 -1.6 13.1

247,000 352,500 275,000 242,500 233,500 18,250 369,000 608,000

Source: REIQ

Median House Price Index September Quarter 2015 120 100 100.0 80 60

62.6

57.4 40

40.2

39.8 30.9

29.6

0 Western Downs

Toowoomba

Goondiwindi

Southern Downs

South Burnett

Scenic Rim

Brisbane

Source: REIQ

ÂŠ Western Downs Regional Council 2016

Western Downs Regional Economic Annual The median house price index for the Western Downs LGA in the September Quarter 2015 was 40.2 when compared to Brisbane (index of 100), indicating that house prices in the region are approximately 60% below those in the Brisbane LGA. The median house price index for the Western Downs LGA decreased significantly by 8.1 percentage points over the year to the September Quarter 2015. The median weekly rental prices for three bedroom houses in the Western Downs LGA decreased substantially by 23.3% over the year to the September Quarter 2015, whilst rents for two bedroom units fell annually by 28.0%. Median weekly rents in the Western Downs LGA are significantly lower than the comparative averages in Brisbane.

Median Weekly Rents Separate houses and units 500 Western Downs (3bd house)

Western Downs (2bd unit)

Brisbane (3bd house)

Brisbane (2bd unit)

400

300

200

100

0 Sep-10

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

Sep-13

Mar-14

Sep-14

Mar-15

Sep-15

Source: REIQ

Gross rental yields are calculated using the median weekly rent for three bedroom houses and the median sales price. The rental yield in the Western Downs LGA was 4.8% in the September Quarter 2015, which represented a decrease of 0.7 percentage points from the average yield recorded in the September Quarter 2014. Residential property yields in the Western Downs LGA were significantly higher than those in Brisbane (3.6%) in the September Quarter 2015.

Rental Yields Separate houses 8% Western Downs

Brisbane

7% 6% 5% 4% 3% 2% Sep-10

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

Sep-13

Mar-14

Sep-14

Mar-15

Sep-15

Source: REIQ, Lawrence Consulting

ÂŠ Western Downs Regional Council 2016

Western Downs Regional Economic Annual

INDUSTRY FOCUS Agriculture The total number of local businesses – i.e. those whose registered place of business is within Western Downs LGA – in the Agricultural, Forestry & Fishing sector was 2,306 in June 2014, which represented the largest industry in terms of total businesses, or 47.1% of all businesses in Western Downs (4,900). Agricultural, Forestry & Fishing recorded total industry value added of $285.0 million in 2014/15, or a contribution of 9.0% to the gross regional product (GRP) for Western Downs LGA of $3.2 billion, representing the second highest industry contribution to GRP behind Mining ($560.2 million). The gross value of agricultural production in the Western Downs in 2010/11 was $519.4 million, which represented a contribution of 25.8% and 5.4%, respectively, to the total value for the Darling Downs-Maranoa ($2.0 billion) and Queensland ($9.6 billion). Crops recorded the highest share of total agricultural production in the Western Downs LGA in 2010/11, with $314.6 million, or 60.6%, followed by Livestock disposals ($198.0 million, or 38.1%) and Livestock products ($6.8 million, or 1.3%) The major agricultural commodities in Western Downs in terms of value of production in 2010/11 were cattle and calves disposals ($128.0 million), cotton ($115.5 million), sorghum for grain ($84.7 million), wheat for grain ($76.9 million) and pig disposals ($67.6 million). Of all agricultural commodities, the Western Downs recorded the largest share of Queensland production in the following industries: sorghum for grain (33.7%); pig disposals (30.5%); wheat for grain (20.3%); oats for grain (20.0%); barley for grain (19.7%); all other crops n.e.c. (19.2%); and mung beans (17.5%). The total estimated economic contribution (direct, indirect and consumption-induced) from the gross value of agricultural production in Western Downs in 2010/11 amounted to: Total Estimated Impact of Agricultural Sector by Commodity Type Direct output Total output Total Direct ($M) ($M) estimated employees value added (FTEs) ($M) Sheep, Grain, Beef and Dairy Cattle: Sheep 5.0 9.2 3.9 19.3 Grain 185.6 342.6 146.0 717.7 Beef cattle 128.0 236.3 100.7 495.0 Dairy cattle 3.1 5.7 2.4 12.0 Sub-total 321.7 593.8 253.0 1,244.0 Commodity type

Total employees (FTEs)

41.6 1,543.4 1,064.4 25.8 2,675.1

Poultry and Other Livestock: Pigs Other livestock Sub-total

67.6 1.0 68.7

122.1 1.8 124.1

57.2 0.8 58.1

165.6 2.4 168.3

450.7 6.7 458.0

Other Agriculture: Other broadacre crops Horticulture Sub-total

125.4 3.6 129.0

235.4 6.8 242.2

106.5 3.1 109.6

381.8 11.0 392.7

942.2 27.0 969.2

Total

519.4

960.0

420.7

1,805.0

4,102.3

Western Downs Regional Economic Annual

Mining & Resources In 2014/15, the minerals and energy sector in the Western Downs region contributed approximately $662.8 million in direct expenditure through: •

$85.1 million in wages and salaries to 542 direct fulltime employees, with an average salary of $157,066; and

•

$577.7 million in purchases of goods and services from local businesses (including contractors), community contributions and local government payments.

Direct Impact of Minerals and Energy Sector by Commodity Type, 2014/15 – Western Downs Commodity type Direct Associated Business Total direct % of total spend employees salaries purchases and spending (FTEs) ($M) community ($M) contributions ($M) Coal 118 13.6 29.2 42.8 6.5% CSG/LNG 409 70.1 546.8 616.9 93.1% Metaliferrous 2 0.5 1.1 1.7 0.3% Other 12 0.8 0.6 1.4 0.2% Total Annual % change

542 -35.5%

85.1 0.6%

577.7 -45.8%

662.8 -42.4%

100.0%

Direct Spending by Mining & Resources Sector Western Downs LGA ($ million) 1,200 Purchases of goods and services and community contributions

Associated salaries

84.6 1,065.4

1,000

800

89.3 754.3 85.1

600

577.7 234.1

400

200

49.1 258.2

287.9

2010/11

2011/12

0 2012/13

2013/14

2014/15

Western Downs was the tenth largest local government area by direct contribution from the mining and resources sector in 2014/15. Over the past five years, the mining and resources sector has contributed approximately $3.5 billion in direct expenditure into the Western Downs LGA. The total economic contribution (direct, indirect and consumption-induced) from the minerals and energy sector to the Western Downs LGA in 2014/15 was estimated at: • • • •

$1,186.7 million in supplying business purchases; $371.4 million in total wages and salaries paid to workers; $1,267.5 million in value added, or 41.6% of total GRP for the region ($3.2 billion in 2014/15); and 6,712 full-time equivalent jobs, or 38.9% of the entire workforce in this region.