Income, assets and equity

In this section ‘total assets’ refers to current and non-current assets combined, as reported by the corporations. Also, ‘total equity’ is calculated as follows:

total equity = total assets – total liabilities.

Figure 6: Combined total income, total assets and total equity, 2005–06 to 2015–16

The total income, assets and equity of the top 500 corporations have consistently increased since 2005–06, except for a slight drop in income in 2009–10 (fi gure 6).

Although total income has risen signifi cantly over the decade, from $865 million to $1,917 million, it grew at a slower average annual rate (8.3 per cent) than total assets and total equity (these average growth rates were 11.5 per cent and 11.9 per cent respectively).

Table 3: Total income, total assets and total equity by state/territory, 2015–16

Table 3 shows the total income, total assets and total equity of the top 500 corporations in each state and territory for 2015–16.

Figure 7: Total income, total assets and total equity for the top 500 corporations by state/territory, 2015–16

The bulk of the income, assets and equity are shared by two jurisdictions: Northern Territory and Western Australia (figure 7).

Figure 8: Movements in average income of the top 500 corporations by state/territory, 2005–06 to 2015–16

Figure 8 shows annual changes in the average income of corporations in each state and territory over 11 financial years. While all jurisdictions experienced an overall increase in income over the period, other patterns also emerged. For example:

• The Northern Territory consistently maintained the highest average income earned by the top 500 corporations over the past 11 financial years. Last year, (2014–15) it broke the $5 million average mark and is the only jurisdiction to ever do so.
• The Northern Territory and New South Wales have followed similar trajectories of growth although at different income levels.
• After four consecutive years above an average of $4 million, the average income in Western Australia fell below $4 million in 2015–16. Over the 11 years Western Australia had a strong two-year period of growth followed by a clear downturn in average income.
• Although Queensland has been third highest in terms of total corporation numbers over the past four years (2012–13 to 2015–16), it has averaged sixth position in terms of average income.
• The Australian Capital Territory and Tasmania had the lowest average income over the past 11 years.
• Not one jurisdiction sustained an increase in average income every year over the 11 year period.
• In 2015–16 the average income from the highest to lowest jurisdiction differs by almost $4 million. The Australian Capital Territory was the lowest at $1,335,801 while the Northern Territory was the highest at $5,311,046.

Figure 9: Ten-year annual average growth rates for income of the top 500 corporations by state/territory, 2014–15 to 2015–16

Compared to last year the 10-year annual average growth rates have begun to even out across all jurisdictions—with exceptions of South Australia being notably lower and Queensland higher (figure 9).

South Australia’s 10-year annual average growth rate slowed even further from 2.0 per cent last year to 1.7 per cent. This average growth rate was much lower than all other jurisdictions. While Queensland’s rate dipped slightly from 10.0 per cent to 9.8 per cent, on average it grew faster than any other jurisdiction.

Although all jurisdictions except Western Australia experienced an upward movement in average income compared to last year (figure 8), the Australian Capital Territory was the only jurisdiction to have an upward movement in its 10-year annual average growth rate (increasing from 5.9 per cent to 8.0 per cent). The 10-year annual average growth rate declined in all other jurisdictions. The largest declines were in:

• Victoria—the average growth rate slowed from 9.6 per cent to 7.2 per cent
• Western Australia—the rate slowed from 9.2 per cent to 7.5 per cent
• Northern Territory—the rate slowed from 8.8 per cent to 7.3 per cent.

Average income by region

The Department of the Prime Minister and Cabinet aligns its network of staff supporting Indigenous affairs
using a model of 12 regional areas to provide support closer to the communities it serves.

The top 500 corporations are aligned with the network in the following table.

Table 4: Average income of the top 500 corporations by region, 2015–16

Table 4 shows the average income earned by the top 500 corporations by region. Arnhem Land and Groote Eylandt remained the region with the highest average income in 2015–16 (in 2014–15 its average income was $7,437,806).

Figure 10: Change in average income of the top 500 corporations by region, 2014–15 to 2015–16

Figure 10 shows nine regions increased their average income from 2014–15 to 2015–16 while three regions decreased.

In 2015–16 the Kimberley region had the largest decrease in average income of 18.2 per cent. The Gulf and North Queensland region (16 corporations) had the largest increase in average income for 2015–16 (40 per cent), whereas in 2014–15 that region (20 corporations) had a 13.5 per cent decrease.