Appendix B: Summary Statistics | RDP 2025-01: Are Investment Tax Breaks Effective? Australian Evidence

RDP 2025-01: Are Investment Tax Breaks Effective? Australian Evidence Appendix B: Summary Statistics

Nu Nu Win, Jonathan Hambur and Robert Breunig

February 2025

Table B1: Summary Statistics for the $2 Million Threshold
Relevant to GFC 2009, Small 2012 and Small 2015
	Treated			Control
	Mean	Std deviation	Obs	Mean	Std deviation	Obs
Investment^(a) ($'000)	156.68	1,783.51	16,242	214.42	3,305.30	5,052
Extensive margin	–1.40	0.87	75,542	0.27	1.75	10,123
Group turnover ($m)	0.42	0.84	86,202	3.28	0.86	13,780
Employment	14.18	137.90	54,595	27.14	94.24	11,821
Notes: Group turnover is the sum of the turnovers of all entities in the enterprise group to which a firm belongs. Where a firm does not belong to an enterprise group, group turnover is equivalent to firm turnover. Firms with group turnover under $2 million are included in the treated group. Firms with group turnover $2 million to $5 million are assigned to the control. (a) Only non-zero entries are used for investment.

Table B2: Summary Statistics for the $10 Million Threshold
Relevant to Medium 2016
	Treated			Control
	Mean	Std deviation	Obs	Mean	Std deviation	Obs
Investment^(a) ($'000)	224.42	2,817.32	6,223	268.32	1,323.15	3,678
Extensive margin	0.06	1.48	13,017	1.12	1.87	5,702
Group turnover ($m)	5.10	2.31	14,959	14.28	2.82	6,529
Employment	54.28	275.22	12,802	82.32	139.00	5,745
Notes: Group turnover is the sum of the turnovers of all entities in the enterprise group to which a firm belongs. Where a firm does not belong to an enterprise group, group turnover is equivalent to firm turnover. Firms with group turnover $2 million to $10 million are included in the treated group. Firms with group turnover $10 million to $20 million are assigned to the control. (a) Only non-zero entries are used for investment.

Table B3: Summary Statistics for the $50 Million Threshold
Relevant to Medium 2019
	Treated			Control
	Mean	Std deviation	Obs	Mean	Std deviation	Obs
Investment^(a) ($'000)	393.21	1,956.87	6,953	531.55	1,606.68	890
Extensive margin	0.84	1.60	11,151	2.29	1.94	1,118
Group turnover ($m)	25.49	11.59	11,716	54.63	2.88	1,357
Employment	119.44	225.32	10,531	208.31	230.34	1,224
Notes: Group turnover is the sum of the turnovers of all entities in the enterprise group to which a firm belongs. Where a firm does not belong to an enterprise group, group turnover is equivalent to firm turnover. Firms with group turnover $10 million to $50 million are included in the treated group. Firms with group turnover $50 million to $100 million are assigned to the control. (a) Only non-zero entries are used for investment.

Table B4: Summary Statistics for the $500 Million Threshold
Relevant to COVID 2020
	Treated			Control
	Mean	Std deviation	Obs	Mean	Std deviation	Obs
Investment^(a) ($'000)	1,355.62	5,467.85	16,619	3,413.06	11,531.34	1,082
Extensive margin	1.64	1.54	21,938	3.09	1.60	1,208
Group turnover ($m)	196.90	120.30	22,231	549.30	28.83	1,337
Employment	412.37	470.99	20,751	771.23	920.41	1,305
Notes: Group turnover is the sum of the turnovers of all entities in the enterprise group to which a firm belongs. Where a firm does not belong to an enterprise group, group turnover is equivalent to firm turnover. Firms with group turnover $50 million to $500 million are included in the treated group. Firms with group turnover $500 million to $600 million are assigned to the control. (a) Only non-zero entries are used for investment.

Table B5: Summary Statistics for the $5 Billion Threshold
Relevant to COVID 2021
	Treated			Control
	Mean	Std deviation	Obs	Mean	Std deviation	Obs
Investment^(a) ($'000)	156.68	1,783.51	2,079	214.42	3,305.30	114
Extensive margin	–1.40	0.87	2,537	0.27	1.75	136
Group turnover ($m)	0.42	0.84	2,582	3.28	0.86	154
Average asset life	15.48	2.37	2,582	15.94	2.26	154
Employment	14.18	137.90	2,553	27.14	94.24	151
Notes: Group turnover is the sum of the turnovers of all entities in the enterprise group to which a firm belongs. Where a firm does not belong to an enterprise group, group turnover is equivalent to firm turnover. Firms with group turnover $500 million to $5 billion are included in the treated group. Firms with group turnover $5 billion to $6 billion are assigned to the control. (a) Only non-zero entries are used for investment.