GLOSSARY
Average personal income derived from own unincorporated business(es)
For persons with principal source of income from their own unincorporated business (as defined) - calculated by dividing total income received by individuals from their own unincorporated business by the number of persons receiving that income.
Business
The ATO considers a person to have a business if the activity has actually commenced; has a significant commercial purpose or character; results in a profit; is carried out in a manner that is characteristic of the industry; is repeated, regular or continuous; cannot be more accurately described as a hobby.
Commonwealth of Australia government pensions, allowances and other payments
Includes the following pensions, allowances and other payments received from the Australian government: parenting payment (partnered), Newstart allowance, youth allowance, mature age allowance, partner allowance, sickness allowance, special benefit, widow allowance, austudy payment, exceptional circumstances relief payment, restart income support or farm household support (by way of financial assistance), Aboriginal Study Assistance Scheme (ABSTUDY) living or dependent spouse allowance or payment under the Veterans’ Children Education Scheme where the taxpayer is 16 years or older, Training for Employment Program allowance, New Enterprise Incentive Scheme allowance, textile, clothing and footwear special allowance, Green Corps training allowance, or other taxable Commonwealth education or training payments, an income support component from a Community Development Employment Project - shown as ‘CDEP Salary or Wages’ on the taxpayer’s PAYG (Pay As You Go) payment summary - individual non business, a CDEP scheme participant supplement, age pension, bereavement allowance, carer payment, disability support pension where the taxpayer has reached age pension age, mature age partner allowance, parenting payment (single), widow B pension, wife pension, age service pension, income support supplement, invalidity service pension where the taxpayer has reached age pension age, partner service pension.
Note: Not all Commonwealth of Australia government pension and allowance recipients are required to lodge income tax returns.
Company
A company is a legal entity separate from its shareholders. For tax purposes a company means a body or association, incorporated or unincorporated, but does not include a partnership or a non-entity venture.
Distribution from partnerships - primary and non-primary production
The individual’s share of the partnership's income or loss, less any attributed foreign income or foreign source income of the partnership(s) on which the taxpayer is assessed. Partnerships generally do not pay tax in their own right. Members of the partnership pay tax at their individual tax rate on their share of partnership income included on their individual tax return.
Distribution from trusts - primary production
The individual’s share of the trust’s income or loss (for primary production), less any attributed foreign income or foreign source income of the trust on which the taxpayer is assessed, and the whole or part of a net capital gain of the trust on which the taxpayer is assessable. For the purposes of the statistics presented in this paper, distributions from trusts with primary production activity have been included under the broad assumption that these individuals were mainly involved in their own farm business.
Distribution from trusts - non-primary production
The individual’s share of the trust’s income or loss (for non-primary production), less any attributed foreign income or foreign source income of the trust on which the taxpayer is assessed, and the whole or part of a net capital gain of the trust on which the taxpayer is assessable. Includes distributions from investment products such as property trusts, cash management trusts, money market trusts, mortgage trusts and unit trusts. For the purposes of the calculation of an individual's main source of income, distribution from trusts - non-primary production have been included under investment income.
Income tax year
Refers to the financial year, i.e. 1 July to 30 June.
Incorporated enterprise
An incorporated enterprise is a company that has a registered business name with the Australian Securities and Investment Commission and a legal status which is separate to that of the individuals involved.
Investment income
Includes interest from financial institutions, net rent and dividends or distributions (including imputation credits) from an Australian company, corporate unit trust or public trading trust. Also included are distributions from trusts - non-primary production which mainly includes income from investments with cash management trusts, property trusts, money market trusts, mortgage trusts and unit trusts.
Net business income
The amount of income (or loss) derived by the individual from primary and/or non-primary production business activities after deduction of relevant business expenses.
Net personal services income
The net income received by persons, including contractors and consultants, as a reward for their personal efforts or skills. It applies to persons receiving such income as a sole trader and is calculated by deducting operating expenses from the income generated by the business activity. Examples of personal services income include: income of a professional practitioner in a sole practice; income payable under a contract which is wholly or principally for the labour or services of a person; income derived by a professional sportsperson or entertainer from the exercise of professional skills; and income derived by consultants from the exercise of personal expertise.
Non-primary production
Production other than that resulting from primary production activities. Non-primary production industries include all the other industries not classified under the ‘Agriculture, forestry and fishing’ broad industry group.
Other income
Includes foreign source income and income not included elsewhere.
Own unincorporated business income
The concept of individual income from own unincorporated business is a 'net concept'. That is, it is the profit (or loss) derived by deducting operating expenses from the value of gross output. It includes net business income from primary and non-primary production activities, distributions from primary production partnerships and trusts, distributions from non-primary production partnerships and net personal services income.
Partnership
For tax purposes, a partnership is an association of people who carry on a business as partners or who receive income jointly. (Note: this does not include a company). Partners contribute their time, talents and/or capital towards the partnership and, in return, share in both the profits/losses and responsibilities. Partnerships generally do not pay tax in their own right. Members of the partnership pay tax at their individual tax rate on their share of partnership income included on their individual tax return.
Persons whose main source of income is from own unincorporated business
Also known as PSIOUB. Persons aged 15 years and over who have submitted a tax return and for whom income from their own unincorporated business, or businesses, was the principal (or main) source of their personal income for the financial year.
Primary production
Production resulting directly from the cultivation of land; the maintenance of animals or poultry for the purpose of selling them or their bodily produce, including natural increase; fishing operations; forest operations and horticulture; and includes the manufacture of dairy produce by the person who produced the raw material used in that manufacture. Includes industries classified under the ‘Agriculture, forestry and fishing’ broad industry group.
Principal (or main) source of income
The source from which the most income was received during the financial year.
Sole trader
A sole trader is an individual who is trading on their own. That person controls and manages the business. The income of the business is treated as the person’s individual income.
Superannuation and annuity income
Includes superannuation and similar pensions and annuities paid by an Australian annuity income superannuation fund, a retirement savings account (RSA) provider, a registered organisation or life assurance company and pensions paid by a fund established for the benefit of commonwealth, state or territory employees and their dependants. Also included in this category are bonuses from life insurance companies and friendly societies.
Trust
A trust is an obligation on a person to hold property or income for the benefit of others (i.e beneficiaries). Except in special circumstances, the beneficiary has to include their share of the trust’s income in their personal income tax return.
Wage and salary earners
Persons aged 15 years and over who have submitted a tax return and for whom wage and salary income was the principal or main source of income for the financial year.
Wage and salary income
Includes gross income as shown on the ‘PAYG payment summary - individual non-business’ as well as allowances, commissions, bonuses, tips, gratuities, consultation fees, honoraria and other payments for services. Allowances and other earnings may include car, travel or transport allowances, allowances for tools, clothing or laundry and dirt, risk, meal or entertainment allowances, etc.
GEOGRAPHIC TERMS
Local Government Area (LGA)
The spatial unit which represents the whole geographical area of responsibility of an incorporated Local Government Council in any state or territory, an Aboriginal or Island Council in Queensland or a Community Government Council in the Northern Territory. The various types of LGAs are Aboriginal councils (AC), areas (A), boroughs (B), cities (C), community government councils (CGC), district councils (DC), island councils (IC), municipalities (M), regional councils (RegC), rural cities (RC), shires (S) and towns (T).
Statistical Local Area (SLA)
These geographical areas are in most cases identical with, or have been formed from a division of, whole LGAs. In other cases, they represent unincorporated areas. In aggregate, SLAs cover the whole of a state or territory without gaps or overlaps. In some cases legal LGAs overlap Statistical Subdivision boundaries and therefore comprise two or three SLAs (Part A, Part B and, if necessary, Part C).
Statistical Subdivision (SSD)
These are of intermediate size, between SLAs and SDs. In aggregate, they cover the whole of Australia without gaps or overlaps. They are defined as socially and economically homogeneous regions characterised by identifiable links between the inhabitants. In the non-urban areas an SSD is characterised by identifiable links between the economic units within the region, under the unifying influence of one or more major towns or cities.
Statistical Division (SD)
These consist of one or more SSDs. The divisions are designed to be relatively homogeneous regions characterised by identifiable social and economic units within the region, under the unifying influence of one or more major towns or cities.
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