6537.0 - Government Benefits, Taxes and Household Income, Australia, 2009-10  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 29/06/2012   
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GLOSSARY

Acute care institution benefits

Includes social transfers in kind relating to all activities of acute care hospitals, free-standing hospices, alcohol and drug treatment centres, and same-day establishments except activities involving health research and formal health education. Acute care institution benefits are a component of health benefits.

Age

Person's age last birthday.

Age pension

Includes the Age Pension, as well as additional cash allowances such as rent assistance. Age pension is a component of social assistance benefits in cash.

Assets

An entity of a financial or non-financial nature, owned by the household or its members, and from which economic benefits may be derived by holding or use over a period of time.

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.

Balance of state

That part of each Australian state or territory not defined as capital city. Balance of state estimates for Northern Territory are regarded as too unreliable to publish separately since they exclude collection districts defined as very remote which account for about 23% of the NT population. All of the Australian Capital Territory is defined as capital city for this publication.

Capital city

Refers to Australia's six state capital city Statistical Divisions and the Darwin Statistical Division as defined in the Australian Standard Geographical Classification (cat.no.1216.0). For the Australian Capital Territory the estimates relate predominantly to urban areas, and all of the Australian Capital Territory is defined as a capital city for this publication.

Child care assistance

Includes social transfers in kind relating to the Child Care Benefit and Child Care Rebate and associated administrative costs. Child care assistance is a component of social security and welfare benefits.

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.

Community health service benefits

Includes social transfers in kind relating to community health services such as domiciliary nursing services, well baby clinics, dental health services, health services provided to particular community groups, family planning services, alcohol and drug rehabilitation programs not involving admission, and other health services provided in a community setting. Also includes expenditure on patient transport. Community health service benefits are a component of health benefits. In 2003-04 the Private Health Insurance Rebate (PHIR) was included in Community health services and for 2009-10 it is reported separately.

Commonwealth Rent Assistance (CRA)

Commonwealth Rent Assistance is a non-taxable income supplement paid through Centrelink to individuals and families who rent in the private rental market. It is only paid to recipients of another government benefit or pension, and is paid in conjunction with that benefit.

Couple

See One family household.

Couple family households with dependent children

See One family household.

Deciles

Groupings that result from ranking all households or persons 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 persons 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.

Disability support pension

Includes the Disability Support Pension, as well as additional cash allowances such as rent assistance. Disability support pension is a component of social assistance benefits in cash.

Disposable income

Gross income less income tax, the Medicare levy and the Medicare levy surcharge i.e. remaining income after taxes are deducted, which is available to support consumption and/or saving. Income tax, Medicare levy and the Medicare levy surcharge are imputed based on each person's income and other characteristics as reported in the survey. Disposable income is sometimes referred to as net income.

Education benefits

Social transfers in kind relating to the provision of school, tertiary and other education.

Electricity concessions

Includes social transfers in kind relating to electricity concessions and rebates.

Employed

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 their own incorporated business with or without employees.

Employer

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

Equivalised household income

Household income adjusted using an equivalence scale. For a lone person household it is equal to household income. For a household comprising more than one person, it is an indicator of the 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. Private income, Disposable income and Final income have been equivalised in this publication. For further information see Appendix 2.

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.

Family tax benefit

Includes Family Tax Benefit (both part A and part B) payments, regardless of whether they are received fortnightly or as a lump sum, as well as additional cash allowances such as rent assistance. It also includes one-off payments to families. Family tax benefit is a component of social assistance benefits in cash.

Final income

Disposable income plus social transfers in kind minus taxes on production.

Formal child care

Regulated child care away from the child's home. The main types of formal child care are before and/or after school care, long day care, family day care, occasional care and vacation care.

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.

Goods and services tax (GST)

Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.

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. All overseas pensions and benefits are included here, although some may not be paid by overseas governments. Family Tax Benefit, Baby Bonus and Child Disability Assistance Payment paid to recipients of Carer Allowance are also included in government pensions and allowances.

Gross imputed rent

The estimated market rent that a dwelling would attract if it were to be commerically rented.

Gross income

Income from all sources, whether monetary or in kind, before income tax, the Medicare levy and the Medicare levy surcharge are deducted. It consists of private income plus social assistance benefits in cash.

Group household

See Non-family household.

Health benefits

Health benefits are social transfers in kind relating to acute care institutions, community health services, pharmaceuticals, Private Health Insurance Rebate and other health benefits.

Household

A person living alone or a group of related or unrelated people who usually live in the same private dwelling.

Household Expenditure Classification (HEC)

The expenditure classification used in the Household Expenditure Survey, Australia, 2009-10 (cat.no.6530.0). In the 2009–10 survey it consists of over 600 items at the most detailed level. At the broadest level it consists of 17 broad expenditure groups. A copy of the classification is included in Household Expenditure Survey and Survey of Income and Housing, Australia: User Guide, 2009-10 (cat.no.6503.0).

Housing benefits

Social transfers in kind from the provision of government housing at subsidised rental rates.

Income

Income consists of all current receipts, whether monetary or in kind, that are received by the household or by individual members of the household, and which are available for, or intended to support, current consumption.

Income includes receipts from:

  • wages and salaries and other receipts from employment (whether from an employer or own incorporated enterprise), including income provided as part of salary sacrificed and/or salary package arrangements
  • profit/loss from own unincorporated business (including partnerships)
  • net investment income (interest, rent, dividends, royalties)
  • government pensions and allowances
  • private transfers (e.g. superannuation, workers' compensation, income from annuities, child support, and financial support received from family members not living in the same household)
  • net imputed rent from owner occupied dwellings and subsidised private rentals.

Private income is the sum of income from all sources except social assistance benefits in cash.

Gross income is the sum of private income and social assistance benefits in cash before income tax, the Medicare levy and the Medicare levy surcharge are deducted. Other measures of income are Disposable income, Equivalised disposable household income and Equivalised final household income.

Note that child support and other transfers from other households are not deducted from the incomes of the households making the transfers.

Income unit

One person or a group of related persons within a household, whose command over income is assumed to be shared. Income sharing is assumed to take place within married (registered or de facto) couples, and between parents and dependent children.

Incorporated business

An incorporated business is a company that has a registered business name with the Australian Securities and Investment Commission (ASIC) and a legal status which is separate to that of the individual owners of the business.

Landlord type

For renters, the type of entity to whom rent is paid or with whom the tenure contract or arrangement is made. Renters are classified 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 landlord – 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 caravan park, an employer (including a government authority), a housing cooperative, a community or church group, or any other body not included elsewhere.

Liability

A liability is an obligation which requires one unit (the debtor) to make a payment or a series of payments to the other unit (the creditor) in certain circumstances specified in a contract between them.

Lone person household

See Non-family household.

Main source of income

That source from which the most positive income is received. If total income is nil or negative the main source is undefined. As there are several possible sources, the main source may account for less than 50% of gross income.

Mean income

The total income received by a group of units divided by the number of units in the group. For more detail about household weighted and person weighted means, see Appendix 1.

Medicare levy

Medicare is Australia’s universal health care system. The Medicare levy is a specific tax, based on individual income, intended to assist in the funding of this system.

Medicare levy surcharge

The Medicare levy surcharge is a levy, or an additional tax, on Australian taxpayers who do not have an appropriate level of private hospital insurance and who are earning more than the specified income threshold.

Multiple family household

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

Negative income

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

Negative net worth

Net worth may be negative when household liabilities exceed household assets.

Net benefits

Total benefits minus total taxes.

Net imputed rent

Gross imputed rent less housing costs, for privately owned dwellings. Net imputed rent is an estimate of the value of housing services that households receive from home ownership or by households paying subsidised rent or occuping their dwelling rent free. Housing costs for the purpose of calculating net imputed rent for owner-occupiers comprise:

  • rates payments (general and water)
  • body corporate fees
  • the interest component of repayments of loans that were obtained for the purposes of purchasing or building
  • rent payments
  • house insurance costs
  • repair and maintenance costs.

Net imputed rent for owner occupied dwellings and subsidised private rentals is included in private income. Net imputed rent for subsidised public rentals is included in Social transfers in kind for housing.

Net worth

Net worth is the value of a household's assets less the value of its liabilities. Net worth may be negative when household liabilities exceed household assets.

Non-dependent children

Persons 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

A household that consists of unrelated persons only. Non-family households are classified to one of the following categories:

  • group household – a household consisting of two or more unrelated persons where all persons are aged 15 years and over. There are no reported couple relationships, parent-child relationships or other blood relationships in these households
  • lone person household – a household consisting of a person living alone.

One family household

One family households are classified to one of the following categories:

  • couple only – two persons in a registered or de facto marriage, who usually live in the same household
  • couple family with dependent children – a household consisting of a couple with at least one dependent child. The household may also include non-dependent children, other relatives and unrelated individuals
  • one parent family with dependent children – a 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 households – 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
    • two or more related individuals where the relationship is not a couple relationship or a parent-child relationship (e.g. two brothers).
One parent family households with dependent children

See One family households.

Other education benefits

Social transfers in kind relating to special education (e.g. education for children who have physical disabilities) and other education benefits which could not be assigned to school or tertiary education. Other education benefits is a component of education benefits.

Other government pensions and allowances

Includes all other income support payments from the Australian government that are not included under Age, Disability Support and Veterans' Affairs pensions, Family tax benefit and Parenting payment. Examples include Carer Allowance, Carer Payment, Partner Allowance and the Baby Bonus. These are a component of social assistance benefits in cash.

Other health benefits

Includes social transfers in kind relating to public health services such as health promotion campaigns, occupational health and safety programs, food standards regulation, immunisation programs, breast cancer screening and screening for childhood diseases, as well as expenditure on health research. Other health benefits is a component of health benefits.

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 one family household

See One family household.

Other private income

Private income other than wages and salaries, and profit or loss from own unincorporated business. It includes net investment income (interest, rent, dividends, royalties), overseas pensions, private transfers, and net imputed rent from owner occupied dwellings and subsidised private rentals.

Other social security and welfare benefits

Includes social transfers in kind relating to the provision of goods and services to specific population groups with special needs. It includes services for the aged, services for people with a disability, etc. The category excludes expenditure on child care assistance and expenditure on monetary transfers to Australian residents (see Social assistance benefits in cash). Other social security and welfare benefits is a component of social security and welfare benefits.

Other tenure type

A household which is not an owner (with or without a mortgage), or a renter. Includes rent free.

Own account worker

A person who operates his or her own unincorporated business 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 businesses. Profit/loss consists of the value of gross output of the business 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 the household members usually reside. Owners are divided into two categories – 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.

Parenting payment

Includes Parenting Payment for both sole and partnered parents. Parenting payment is a component of social assistance benefits in cash.

Percentile

When all households or persons in the population are ranked from the lowest to the highest on the basis of some characteristic such as their household income, they can then be divided into equal sized groups. Division into 100 groups gives percentiles. The highest value of the characteristic in the tenth percentile is denoted P10. The median or the top of the 50th percentile is denoted P50. P20, P80 and P90 denote the highest values in the 20th, 80th and 90th percentiles. Ratios of values at the top of selected percentiles, such as P90/P10, are often called percentile ratios in analysing distributions.  See also Percentile ratios.

Percentile ratios

Percentile ratios summarise the relative distance between two points in a distribution. To illustrate the full spread of the income distribution, the percentile ratio needs to refer to points near the extremes of the distribution, for example, the P90/P10 ratio. The P80/P20 ratio better illustrates the magnitude of the range within which the income of the majority of households falls. The P80/P50 and P20/P50 ratios focus on comparing the ends of the income distribution with the midpoint. 

Pharmaceutical benefits

Includes social transfers in kind relating to pharmaceuticals provided outside of hospitals, aids and appliances used for health purposes and supplied in an ambulatory setting, glasses, hearing aids, wheel chairs, etc. Pharmaceuticals is a component of health benefits.

Preschool

Educational and developmental programs for children in the year (or in some jurisdictions, two years) before they begin full-time primary education.

Private dwelling

Houses, flats, home units, caravans, garages, tents and other structures that are used as places of residence. These are distinct from special dwellings which include hotels, boarding houses and institutions.

Private income

Current receipts from private organisations and other households, including wages and salaries, income from own unincorporated business, superannuation, workers' compensation, income from annuities, interest, dividends, royalties, income from rental properties, scholarships and child support. It also includes net imputed rent from owner occupied dwellings and subsidised private rentals.

Private landlord

See Landlord type.

Private Health Insurance Rebate

Includes social transfers in kind relating to a rebate on private health insurance costs for members of a registered health fund. Private Health Insurance Rebate is a component of health benefits. In 2003-04, the Private Health Insurance Rebate was a component of Community health services.

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. For further information see Appendix 1.

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:

  • the person with the highest tenure when ranked as follows: owner without a mortgage, owner with a mortgage, renter, other tenure
  • 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.

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. For further information see Appendix 3.

Renter

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

School education benefits

Social transfers in kind relating to administration, inspection, support and operation of educational programs for preschool, primary and secondary school students. Government expenditure on the administration, inspection, support and operation of transportation services to students were included. Government expenditure on school medical and dental programs (which are included in other health benefits) and monetary transfers to households were excluded. School education is a component of education benefits.

Selected dwelling

The private dwelling selected in the sample for the survey.

Social assistance benefits in cash

Cash payments to persons from general government without any requirement to provide goods and services in return. 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. Family Tax Benefit, Baby Bonus and Child Disability Assistance Payment paid to recipients of Carer Allowance are also included in social assistance benefits in cash. Household social assistance benefits in cash are the sum of all household members' cash payments. The only difference between 'government pensions and allowances' and 'social assistance benefits in cash' is that overseas pensions are included in government pensions and allowances and private income and excluded from social assistance benefits in cash.

Social security and welfare benefits

Includes social transfers in kind relating to the provision of goods and services to specific population groups with special needs. It includes expenditure on child care assistance (including the Child Care Benefit and Child Care Rebate), services for the aged, services for people with a disability etc. The category excludes expenditure on monetary transfers to Australian residents (see Social assistance benefits in cash).

Social transfers in kind

Non-cash benefits and services provided by the government to households for education, health, housing, social security and welfare, and electricity concessions and rebates. It includes reimbursements of approved expenditures such as the Medicare rebate, the Private Health Insurance Rebate, the Child Care Benefit and the Child Care Rebate. The cost of administering the provision of social assistance benefits in cash is included. For further information see Appendix 4.

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. For further information see Appendix 3.

State/territory housing authority

See Landlord type.

Taxes on income

Taxes on income is the sum of personal income tax plus the Medicare levy and Medicare levy surcharge for all members of the household. In this study, taxes on income were imputed according to the 2009–10 tax rules which were applied to the gross income of family members according to their characteristics as reported in the 2009–10 Household Expenditure Survey.

Taxes on production

Taxes on production and imports consist of taxes payable on goods and services when they are produced, delivered, sold, transferred or otherwise disposed of by their producers plus taxes and duties on imports that become payable when goods enter the economic territory by crossing the frontier or when services are delivered to resident units by non-resident units; they also include other taxes on production, which consist mainly of taxes on the ownership or use of land, buildings or other assets used in production or on the labour employed, or compensation of employees paid. For further information see Appendix 5.

Taxes on production on alcohol beverages

Taxes on production on alcohol are excises on beer and drinkable spirits, GST, wine equalisation tax and all other taxes that are passed on from the process of production, delivery, transfer or sale of the alcohol.

Taxes on production on clothing and footwear

Taxes on production on clothing and footwear are the GST and all other taxes that are passed on from the process of production, delivery, transfer or sale of the clothing and footwear products.

Taxes on production on food and non-alcoholic beverages

Taxes on production on food and non-alcoholic beverages are the GST and all other taxes that are passed on from the process of production, delivery, transfer or sale of these items. Food and non-alcoholic beverages exclude meals out and fast food items.

Taxes on production on meals out and fast food

Taxes on production on meals out and fast food are the GST and all other taxes that are passed on from the process of production, delivery, transfer or sale of the meals out and fast food products.

Taxes on production on motor vehicle fuels

Taxes on production on motor vehicle fuel are excises on crude oil and petroleum products, petroleum product franchise taxes, excises on diesel fuel, LPG and other gas fuels, excises on petrol used during holidays in Australia, GST and all other taxes that are passed on from the process of production, delivery, transfer or sale of the product.

Taxes on production on motor vehicle purchase

Taxes on production on motor vehicle purchase are the GST, stamp duties and all other taxes that are passed on from the process of production, delivery, transfer or sale of motor vehicles.

Taxes on production on other goods and services

All taxes on production on goods and services allocated to households, other than those separately identified in respect of alcoholic beverages, clothing and footwear, food and non-alcoholic beverages, meals out and fast food, motor vehicle purchase, motor vehicle fuels, ownership of dwellings and tobacco products.

Taxes on production on ownership of dwellings

Taxes on production on the ownership of dwellings are taxes on the final consumption expenditure of residential accomodation dwellings that households own or rent. They include government rates and land taxes, the GST on new investment properties built or substantially renovated since the GST was introduced in July 2000, and other taxes on consumption expenditure that are passed on from the process of production, delivery, transfer or sale of dwellings. It is assumed that taxes on production are borne directly by owner occupiers, or passed on by landlords to tenants in higher costs.

Taxes on production on tobacco products

Taxes on production on tobacco are excises on tobacco products, GST and all other taxes that are passed on from the process of production, delivery, transfer or sale of tobacco.

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.

Tertiary education benefits

Social transfers in kind relating to the administration, inspection, operation and support of education programs at higher education institutions and colleges of technical and further education. Tertiary education is a component of education benefits.

Total benefits

The total of social assistance benefits in cash and social transfers in kind allocated.

Total taxes

The total of taxes on income and taxes on production allocated.

Unemployed

Persons aged 15 years and over who were not employed during the week before the interview and 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
  • 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.

Unemployment and student allowances

Includes Newstart Allowance, Youth Allowance, Sickness Allowance, Austudy/Abstudy and additional cash allowances such as rent assistance. Unemployment and student allowances are a component of social assistance benefits in cash.

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.

Veterans' Affairs pensions

Pensions paid by the Department of Veterans' Affairs. Includes service, disability and war widow pension as well as additional allowances such as rent assistance. Veterans' Affairs pensions are a component of social assistance benefits in cash.

Wages and salaries

An employee's total remuneration, whether monetary or in kind, received as a return to labour from an employer or from a person's own incorporated business. It comprises wages and salaries, bonuses, amounts salary sacrificed, non-cash benefits such as the use of motor vehicles and subsidised housing, and termination payments.

Wealth

See Net worth.