Statement 8: Trends in Public Sector Finances
Appendix A: Size and structure of the public sector
This Appendix provides an overview of the size and structure of Australia's public sector to assist in interpreting the trends discussed elsewhere in this statement.
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Chart A1: Contribution of public and private sectors |
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Wage and salary earners, |
Domestic demand, |
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Source: ABS Cat. No. 6248.0.
As shown in Chart A1, the public sector directly accounts for around 20 per cent of wage and salary earners and 23 per cent of final domestic demand.1 The State/local level accounts for 81 per cent of total public sector wage and salary earners and 16 per cent of total wage and salary earners, reflecting its major responsibilities for service delivery in the areas of education, health, transport, and public order and safety.
There are significant differences in the roles and responsibilities of the two main levels of government. Major Commonwealth expenses include transfer payments in relation to social security, welfare and health and defence expenditure. The Commonwealth also has an important role in funding education and health services provided by the States and the private sector.
1 Transfer payments by the Commonwealth - for example, income support - are not included in public final demand.
