Australian Bureau of Statistics
Celebrating the International Year of Statistics 2013

GOVERNMENT BENEFITS, TAXES AND HOUSEHOLD INCOME

Results of a study of the effects of government benefits and taxes on the distribution of income among private households in Australia in 2003-04, were released in June 2007. The study uses Household Expenditure Survey data in conjunction with other data, such as government finance statistics, to calculate the effects of government benefits and taxes on household income.



Key results from the 2003-04 study include:

• 27% of government benefits, both in cash and in kind, were allocated to the 20% of people in the low income group.

• 20% of people in the low income group received 36% of the government benefits in cash, whereas people in the high income group (the top 20%) received 4% of the cash benefits.

• Indirect benefits provided in kind through government services in health, education, housing, social security and welfare were more evenly distributed, with 22% of benefits received by people in the low income group and 16% received by those in the high income group.

• People in the low income group paid 5% of all personal income taxes, and 17% of taxes on production such as the GST, while the high income group paid 54% of personal income taxes and 26% of the allocated taxes on production.

Results of the study are available in Government Benefits, Taxes and Household Income, Australia, 2003-04 (cat no. 6537.0). In addition, a confidentialised unit record file is available for purchase by authorised clients for approved purposes of statistical analysis and policy research.

For further information contact Rajni Madan on (02) 6252 7457 or email client.services@abs.gov.au.