Executive summary

Characteristics of Australians accessing the Internet

A growing majority of Australians use the Internet.

The number of Internet subscribers rose to just over five million in the first quarter of 2003, an increase of 28% on the same period for 2001.  Subscribers were made up of about 4.4 million private households and 659,000 businesses and government organisations.

In the second quarter of 2003, 55% of households had Internet access, up from 50% in the same period of 2001.

Fifty eight percent of the Australian population had immediate access to the Internet during June 2003.

Fifty nine percent of Australians aged 14 years and over used the Internet from any location (home, work or other location) at June 2003.

At June 2002, in excess of 70% of businesses with employees were online, while Internet connectivity jumped to above 80% for businesses with five or more employees and above 90% for businesses with 20 or more employees.

While Internet participation has increased across all socio-economic groups and business categories, certain groups within Australian society are still more likely to have significantly higher levels of Internet use than other socio-economic groupings.

Australians in general

Amongst Australians aged 14 years and over, during June 2003:

• Internet use generally declined with age.  Eight two per cent of persons aged 14-17 years reported using the Internet compared to 79% for 18-24 year olds, 71% of 25-39 year olds, 65% of 40-54 year olds and 29% of persons aged 55 years or over.  However, the highest proportional increase in online participation was recorded by persons aged 55 years and over (an increase of 61% since June 2001)
• Internet participation increased with levels of educational attainment.  About 85% of those with a university degree accessed the Internet compared to 64% of persons with a certificate, 61% of those with upper secondary, and 40% of those with mainly primary school education.
• Internet participation increased with personal incomes.  About 36% of those earning between $10,000 and $14,999 used the Internet compared to 72% of those earning between $40,000 and $49,999 and  90% of those on incomes of $119,999 or above.
• Persons in older families had the highest participation rate (75%) followed by young families (66%), couples (48%) and singles (34%).
• 62% of persons in metropolitan areas accessed the Internet compared to 53% in non-metropolitan areas, however, the highest proportional increase in online participation was recorded in non-metropolitan areas (up by 26% since June 2001).

Australian business

While the use of technologies such as computers and the Internet by businesses is wide spread, business operating characteristics, such as firm size and industry of operation, still had a significant influence on levels of technology usage, particularly in relation to the adoption of web sites. 

Amongst Australian businesses with employees at June 2002:

• 65% of businesses employing less than 5 persons were online, compared to 80% of businesses with 5-19 employees, 93% for businesses with 20-99 employees and 99% of businesses with 100 or employees compared to 50%, 66%, 83% and 99% respectively at June 2000.
• Industry sectors such as electricity, gas & water, property and business services, finance and insurance, cultural & recreational services and mining had higher levels of Internet connectivity compared to sectors such as personal & other services and accommodation, cafes & restaurants.
• An estimated 24% of businesses with employees were estimated to have a web site, however, this increased dramatically with the size of the business.  Fifteen per cent of online businesses with less than 5 employees had a web site, compared to 34% of businesses with 5-19 employees, 55% of businesses with 20-99 employees and 81% of business with 100 or more employees.
• At a broad regional level there was only a very small difference in levels of technology adoption (computers, the Internet and web sites) between metropolitan and non-metropolitan businesses.

E-service capability and online activities

Australians and Australian businesses in general increasingly used the Internet for a broad range of activities.  However, for both groups, communication and information gathering were core to activities undertaken online.

Australians in general

During June 2003, amongst Australian Internet users aged 14 years and over:

• the top online activities were closely related to communication and information needs. The one exception is the increasing popularity of Internet banking and financial activities which ranked third with a patronage of 37% of the Internet population 14 years and over at June 2003.
• Communication (covering activities such as electronic mail, Internet telephony, use of chat rooms, etc), was the most prolific Internet activity.  Seventy-five per cent of monthly Internet users 14 years and over reported the use of e-mail or other interactive and non-interactive communications in the past seven days. The lead ranking of communication activities has been evident since December 2000.
• About 28% of Internet users engaged in online buying or selling related activities.
• Entertainment and education related activities trailed the other main activities identified, with a following of 24% and 18% respectively.

The popularity and appeal of online government services is evident given that 36% of Internet users 18 years and over accessed such services in 2002.

Home broadband Internet users undertook similar activities online in comparison to home Internet users in general.  However, initial research shows that there are certain web site categories, which attracted a significantly higher proportion of broadband users in comparison to the general Internet population.  Web sites relating to videos /movies, maps/travel information, web hosting, special interest news, and directories or local guides were examples of such sites.

As the summary diagrams show, there was little difference in the activities undertaken online between metropolitan and non-metropolitan Internet users during this period. 

However, while a higher proportion of Internet users in metropolitan areas undertook a particular activity online, the difference was only marginal and has steadily declined as a result of the higher compound annual average growth rates recorded by Internet users in non-metropolitan areas.

Diagram 1: Activities undertaken online - Australia June 2003

Diagram 2: Activities undertaken online in Australian capital cities - June 2003

Diagram 3: Activities undertaken online in non-metropolitan areas in Australia - June 2003

Australian business

Australian businesses predominantly used the Internet for communication and the management of inter-business and business to government commerce.  The main activities undertaken online by businesses at June 2002 were:

• correspondence, 94% of online businesses;
• information searches, 88% of online businesses; and
• banking, 69% of online businesses.

Potential for delivery of e-services

The ABS reported that at June 2002, 24% of businesses had a web site or web presence, and were therefore capable of delivering services electronically to customers.  Eighty one per cent of these businesses were small or micro businesses with less than 20 employees.  Fifty five per cent of businesses with web sites were in the wholesale / retail sectors (28%) or the property and businesses services sector (28%).