Written byThe ABS is the Australian Bureau of Statistics, the independent national agency that produces Australia's official figures on inflation, jobs, spending and population.
Also known as: Australian Bureau of Statistics, Bureau of Statistics
Key points
- It publishes the consumer price index, the inflation measure the RBA watches when it sets the cash rate.
- Labour force, household spending, building approvals and business counts all come from the ABS, and economists read them for the direction of the economy.
- It runs the Census and operates independently under its own Act, with strict confidentiality rules for the data it collects.
- When a news report says inflation rose or unemployment fell, the source is almost always an ABS release.
What the ABS does
The ABS is an independent statutory authority set up under the Australian Bureau of Statistics Act 1975, with its collection powers and confidentiality rules coming from the Census and Statistics Act 1905. Its job is to produce trusted, objective statistics on economic, social, population and environmental matters, and to publish them on the same terms to everyone, from the Treasurer to a tradie reading the news.
Its best-known releases are the consumer price index, the monthly labour force survey, the national accounts (which contain GDP), the monthly household spending indicator, building approvals and the five-yearly Census. Business owners also meet the ABS through surveys, which they are required to complete when selected.
Why ABS numbers matter for borrowers
The chain is short. The ABS measures inflation, the RBA sets the cash rate with that measure in mind, and lenders price variable rate loans off the cash rate. A higher than expected inflation figure can move expectations for the cash rate within minutes, which is why the monthly CPI release gets so much attention.
The same figures shape the interest outlook for anyone weighing a fixed rate against a variable one, and many tax thresholds and government payments are indexed to the CPI each year. Business owners read household spending, building approvals and business counts as a rough gauge of demand in their own industry.
Reading an ABS release
ABS releases come with a fixed calendar, so the dates are known months ahead. Most figures are published three ways, original, seasonally adjusted and trend; the seasonally adjusted figure is the one the news usually quotes. Numbers are also revised as more data arrives, so an early monthly figure can shift by the time the quarterly release lands.
All of it is free at abs.gov.au, including the spreadsheets behind each release. If a headline figure seems to contradict what you see in your own business, the detailed tables by state and industry are usually where the explanation sits.
Example
A florist in Launceston has a variable rate loan on her delivery van and shop fit-out. She notices that the monthly ABS inflation figure comes out higher than economists expected, and within a day the commentary has shifted to whether the RBA will lift the cash rate at its next meeting. She uses the weeks before that meeting to check what a rise would add to her repayments and whether fixing part of the loan makes sense, rather than being surprised when her lender writes to her after the decision.
Not to be confused with
- RBA
- the ABS measures inflation and employment, while the RBA sets the cash rate in response
- Australian Business Register (ABR)
- the ABR is the Australian Business Register that holds ABN details, not a statistics agency
Frequently asked questions
Is the ABS part of the government?
It is a Commonwealth statutory authority, funded by government but independent in how it collects and publishes statistics. The Australian Statistician runs it under the ABS Act, and the Census and Statistics Act protects the confidentiality of everything it collects, so individual survey responses cannot be passed to other agencies such as the ATO.
How often does the ABS release inflation data?
The ABS now publishes a complete consumer price index every month, having moved from a quarterly cycle. Each monthly release covers the previous month and is issued on a published date, so borrowers and lenders know in advance when the next inflation figure lands and can watch for the RBA's response.
Why does the RBA care about ABS figures?
The RBA's inflation target is measured using the ABS consumer price index, and its view of the labour market comes from the ABS labour force survey. Those two releases are the main inputs into cash rate decisions, which then flow through to the variable rates lenders charge on home, car and business loans.
What is the difference between the ABS and the ABR?
They share two letters and nothing else. The ABS is the Australian Bureau of Statistics, which measures the economy. The ABR is the Australian Business Register, run by the ATO, which records ABN details and feeds ABN Lookup. A lender checking your ABN is using the ABR, not the ABS.
Can I use ABS data for my own business?
Yes, and it is free. The ABS publishes detailed tables by state, industry and region behind every release, covering household spending, building activity, wages and business counts. Owners use them to size a market, sanity check a business plan or support a finance application with evidence of demand in their sector.
Related terms
Consumer price index (CPI)
The consumer price index (CPI) is Australia's main measure of inflation: how the prices of a basket of goods and services bought by households change over time.
Read definitionRBA
The RBA (Reserve Bank of Australia) is Australia's central bank: it sets the cash rate that flows through to loan and savings rates, and operates key payment settlement systems.
Read definitionCash rate
The cash rate is the interest rate the RBA targets for overnight loans between banks, the benchmark that anchors short-term funding costs and influences most Australian lending rates.
Read definitionVariable rate
A variable rate is an interest rate that can move up or down over the life of a loan, following the lender's benchmark and its margin.
Read definitionInterest
Interest is the price of using money: what a borrower pays on a loan, or a saver earns on a deposit, expressed as a percentage rate on the principal.
Read definitionFixed rate
A fixed rate is an interest rate locked in for a set term, so the rate and usually the repayments do not change until that term ends.
Read definitionGo deeper
Sources
This article is general information only and is not financial advice.