GROSS HOUSEHOLD DISPOSABLE INCOME
Gross state product per capita does not measure income received by residents of a particular state or territory because a proportion of income generated in the production process may be transferred to other states/territories or overseas (and conversely income may be received from other states/territories or from overseas). A measure that takes these interstate or overseas flows into account is gross household disposable income per capita.
Households in the ACT recorded the highest level of gross household disposable income per capita of all states and territories in 2005-06, in current price terms. At $45,382 per capita, this was nearly $15,000 more than the next highest jurisdiction, the Northern Territory ($30,458) and more than $16,000 higher than for Australia as a whole. Tasmania recorded the lowest gross household disposable income per capita in 2005-06 ($25,003).
Differences between the states and territories are driven by a number of factors: average wage levels; proportion of the population in employment; the age distribution of the population and differences in the level of dwelling rent, including that imputed to owner occupiers. For example, one reason for the high level recorded in the ACT is the territory's high labour force participation rate - in June 2006 the trend participation rate for the ACT was 73%, versus 65% for Australia as a whole.
