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6530.0 - Household Expenditure Survey, Australia: Summary of Results, 2003-04 (Reissue)  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 15/02/2006   
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GLOSSARY

Average weekly expenditure


Value obtained by dividing the estimated weekly expenditure of a group of households by the estimated number of households in the group.


Broad expenditure group


The broadest level of the Household Expenditure Classification used in the 2003-04 survey. A list of the detailed expenditure items making up each broad expenditure group will be included in the 2003-04 User Guide.


Capital cities


Australia's six state capital city statistical divisions and the Darwin statistical division. For the Australian Capital Territory the estimates relate predominantly to urban areas.


Collection district


The census Collection District (CD) is the smallest geographic area defined in the Australian Standard Geographical Classification (cat. no. 1216.0).


Consumer Price Index (CPI)


A general measure of price inflation for the household sector in Australia. Specifically, it provides a measure of changes, over time, in the cost of a constant basket of goods and services acquired by the capital city households in Australia.


Couple family with dependent children


One family household consisting of a couple with at least one dependent child. The household may also include non-dependent children, other relatives and unrelated individuals.


Couple


Two people in a registered or de facto marriage, who usually live in the same household.


Decile


Groupings that result from ranking all households or people in the population in ascending order according to some characteristic such as their household income and then dividing the population into 10 equal groups, each comprising 10% of the estimated population.


Dependent children


All persons aged under 15 years; and people aged 15-24 years who are full-time students, have a parent in the household and do not have a partner or child of their own in the household.


Disposable income


Gross income after income tax and the Medicare levy are deducted and family tax benefit paid through the tax system or as a lump sum by Centrelink is added. Income tax and the Medicare levy are imputed based on each person's income and other characteristics as reported in the survey. Family tax benefit is estimated on the basis of reductions in pay-as-you-go tax payments, as reported in the survey, or imputed on the basis of each family's income and composition. Disposable income is sometimes referred to as net income.


Employed persons


Persons aged 15 years and over who, during the week before the interview:

  • worked one hour or more for pay, profit, commission or payment in kind in a job or business, or on a farm (includes employees, employers and own account workers)
  • worked one hour or more, without pay, in a family business or on a family farm
  • had a job, business or farm but was not at work because of holidays, sickness or other reason.

Employee


An employed person who, for most of his/her working hours:

  • works for a public or private employer and receives remuneration in wages or salary, or is paid a retainer fee by his/her employer and works on a commission basis, or works for an employer for tips, piece-rates or payment in kind
  • operates his or her own incorporated enterprise with or without hiring employees.

Employer


A person who operates his or her own unincorporated economic enterprise or engages independently in a profession or trade, and hires one or more employees.


Equivalised disposable household income


Disposable household income adjusted using an equivalence scale. For a lone person household it is equal to disposable household income. For a household comprising more than one person, it is an indicator of the disposable household income that would need to be received by a lone person household to enjoy the same level of economic wellbeing as the household in question.


Expenditure


The cost of goods and services acquired during the reference period for private use, whether or not the goods were paid for or consumed. Expenditure is net of refunds. For example, payments for health services are net of any refunds received or expected to be received. Expenditure is classified according to the
Household Expenditure Classification
which contains over 600 detailed items.


Family


Two or more people, one of whom is at least 15 years of age, who are related by blood, marriage (registered or de facto), adoption, step or fostering, and who usually live in the same household. A separate family is formed for each married couple, or for each set of parent-child relationships where only one parent is present.


Family composition of household


Classifies households into three broad groupings based on the number of families present (one family, multiple family and non-family). One family households are further disaggregated according to the type of family (such as couple family or one parent family) and according to whether or not dependent children are present. Non-family households are disaggregated into lone person households and group households.


Full-time student


A person 15 years or over who is classified as a full-time student by the institution they attend, or considers himself/herself to be a full-time student. Full-time study does not preclude employment.


Government pensions and allowances


Income support payments from government to persons under social security and related government programs. Included are pensions and allowances received by aged, disabled, unemployed and sick persons, families and children, veterans or their survivors, and study allowances for students. Sometimes referred to as government benefits transfers. All overseas pensions and benefits are included here, although some may not be paid by overseas governments. The one-off payment to seniors paid in 2000-01 and the one-off payments to families and carers paid in 2003-04 are included. Family tax benefit is also regarded as income, although for practical reasons family tax benefit paid through the tax system or as a lump sum by Centrelink is only included under disposable income, and not gross income.


Gross income


Regular cash receipts before income tax or the Medicare levy are deducted.


Group household


A household consisting of two or more unrelated people where all people are aged 15 years and over. There are no reported couple relationships, parent-child relationships or other blood relationships in these households.


Household


A group of related or unrelated people who usually live in the same dwelling and make common provision for food and other essentials of living; or a lone person who makes provision for his or her own food and other essentials of living without combining with any other person.


Household Expenditure Classification (HEC)


The expenditure classification used in the Household Expenditure Survey. In the 2003-04 survey it consists of over 600 items at the most detailed level. At the broadest level it consists of 17 broad expenditure groups. All broad groups except other capital housing costs are presented in this publication. A copy of the classification will be included in the 2003-04 User Guide.


Income


Regular and recurring cash receipts including moneys received from wages and salaries, government pensions and allowances, and other regular receipts such as superannuation, workers' compensation, child support, other transfers from other households, scholarships, profit or loss from own unincorporated business or partnership and investment income. Gross income is the sum of the income from all these sources before income tax or the Medicare levy are deducted. Other measures of income are disposable income and equivalised disposable income. Note that child support and other transfers from other households are not deducted from the incomes of the households making the transfers.


Labour force status


Classifies all people aged 15 years and over according to whether they were employed, unemployed or not in the labour force.


Landlord type


For renters, the type of entity to whom rent is paid or with whom the tenure contract or arrangement is made. Renters belong to one of the following categories:

  • state/territory housing authority - where the household pays rent to a state or territory housing authority or trust
  • private landlords - where the household pays rent to a real estate agent or to another person not in the same household
  • other - where the household pays rent to the owner/manager of a caravan park, an employer (including a government authority), a housing cooperative, a community or church group, or any other body not included elsewhere.

Lone person household


A household consisting of a person living alone.


Mean income


The total income received by a group of units divided by the number of units in the group.


Multiple family household


A household containing two or more families. Unrelated individuals may also be present.


Negative expenditure


Occurs if a household's receipts for a good or service (e.g. refunds, trade-ins, sales or successful insurance claims), over a specific period, exceeds the cost of acquisitions. For example, if a household sold a car in the previous 12 months and did not buy a replacement car or they bought a less expensive car, this household would report negative expenditure on cars.


Negative income


Income may be negative when a loss accrues to a household as an owner or partner in unincorporated enterprises or rental properties. Losses occur when operating expenses and depreciation are greater than gross receipts.


Net worth


Net worth is the value of a household's assets less the value of its liabilities. For further information refer to paragraphs 28 to 31 in Explanatory Notes.


Non-dependent children


All people aged 15 years and over who:

  • do not have a spouse or offspring of their own in the household
  • have a parent in the household
  • are not full-time students aged 15-24 years.

Non-family household


Consists of unrelated people only. A non-family household can be either a person living alone or a group household.


Not in the labour force


Persons not in the categories employed or unemployed as defined.


One family household


A household containing only one family. Unrelated individuals may also be present.


One parent family with dependent children


A one family household comprising a lone parent with at least one dependent child. The household may also include non-dependent children, other relatives and unrelated individuals.


Other one family household


A household comprising:

  • one couple with their non-dependent children only
  • one couple, with or without non-dependent children, plus other relatives
  • one couple, with or without non-dependent children or other relatives, plus unrelated individuals
  • a lone parent with his/her non-dependent children, with or without other relatives and unrelated individuals, or
  • two or more related individuals where the relationship is not a couple relationship or a parent-child relationship (e.g. two brothers).

Other income


Income other than wages and salaries, own business or partnership income and government pensions and allowances. This includes income received as a result of ownership of financial assets (interest, dividends), and of non-financial assets (rent, royalties) and other regular receipts from sources such as superannuation, child support, workers' compensation and scholarships. Income from rent is net of operating expenses and depreciation and may be negative when these are greater than gross receipts.


Other landlord type


Where the household pays rent to the owner/manager of a caravan park, an employer (including a government authority), a housing cooperative, a community or church group, or any other body not included elsewhere.


Other tenure type


A household which is not an owner, a purchaser or a renter.


Own account worker


A person who operates his or her own unincorporated economic enterprise or engages independently in a profession or trade and hires no employees.


Own unincorporated business income


The profit/loss that accrues to persons as owners of, or partners in, unincorporated enterprises. Profit/loss consists of the value of gross output of the enterprise after the deduction of operating expenses (including depreciation). Losses occur when operating expenses are greater than gross receipts and are treated as negative income.


Owner (of dwelling)


A household in which at least one member owns the dwelling in which it usually resides. Owners are divided into two classifications - owners without a mortgage and owners with a mortgage. If there is any outstanding mortgage or loan secured against the dwelling the household is an owner with a mortgage. If there is no mortgage or loan secured against the dwelling the household is an owner without a mortgage.


Principal source of income


That source from which the most positive income is received. If total income is nil or negative the principal source is undefined.


Private income


Regular, recurring receipts from private organisations, including superannuation, regular workers' compensation, income from annuities, interest, dividends, royalties, income from rental properties, scholarships and child support.


Quintiles


Groupings that result from ranking all households or people in the population in ascending order according to some characteristic such as their household income and then dividing the population into five equal groups, each comprising 20% of the estimated population.


Reference person


The reference person for each household is chosen by applying, to all household members aged 15 years and over, the selection criteria below, in the order listed, until a single appropriate reference person is identified:

  • one of the partners in a registered or de facto marriage, with dependent children
  • one of the partners in a registered or de facto marriage, without dependent children
  • a lone parent with dependent children
  • the person with the highest income
  • the eldest person.

For example, in a household containing a lone parent with a non-dependent child, the one with the higher income will become the reference person. However, if both individuals have the same income, the elder will become the reference person.


Relative standard error (RSE)


The standard error expressed as a percentage of the estimate for which it was calculated. It is a measure which is independent of both the size of the sample, and the unit of measurement and as a result, can be used to compare the reliability of different estimates. The smaller an estimate's RSE, the more likely it is that the estimate is a good proxy for that which would have been obtained if the whole population had been surveyed.


Renter


A household which pays rent to reside in the dwelling. See further classification by Landlord type.


Selected dwelling


The private dwelling selected in the sample for the survey. See the Explanatory Notes for details of types of dwellings and how they are selected for this survey.


Significant person


Significant persons are defined as follows:

  • all members of a lone person or couple only household
  • all parents in a couple with children household or a single parent household
  • the person aged 15 years or over in an unrelated persons household where one person is aged 15 years or over and the other members of the household are less than 15 years old
  • 50% of the persons aged 15 years and over in all other households.

Standard error


A measure of the likely difference between estimates obtained in a sample survey and estimates which would have been obtained if the whole population had been surveyed. The magnitude of the standard error associated with any survey is a function of sample design, sample size and population variability.


Tenure type


The nature of a household's legal right to occupy the dwelling in which the household members usually reside. Tenure is determined according to whether the household owns the dwelling outright, owns the dwelling but has a mortgage or loan secured against it, is paying rent to live in the dwelling or has some other arrangement to occupy the dwelling.


Unemployed persons


Persons aged 15 years and over who were not employed during the week before the interview, had actively looked for full-time or part-time work at any time in the four weeks before the interview and

  • were available for work in the week before the interview, or
  • were waiting to start a new job within four weeks from the interview and would have started in the week before the interview if the job had been available then.

Unincorporated business


A business in which the owner(s) and the business are the same legal entity, so that, for example, the owner(s) are personally liable for any business debts that are incurred.


Wages and salaries


The gross cash income received as a return to labour from an employer or from a person's own incorporated business.


Wealth


See Net worth.


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