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Indigenous Statistics for Schools
 


Image: Income INCOME

Household Income

Income is presented as either household income or individual income. While income is usually received by individuals, the total income for a household is often a more useful indicator of economic well being.

Larger households normally require a greater level of income to maintain the same standard of living as smaller households, and the needs of adults are normally greater than the needs of children. Equivalised household income takes these differences into account so that households of different size and composition can be compared. For information about equivalised household income see Glossary.

In 2006, the mean equivalised gross household income for Indigenous people was $460 per week, compared with $740 for non-Indigenous people. Overall, the mean equivalised gross household income for Indigenous people is approximately 62% of the corresponding figure for non-Indigenous people.

Mean equivalised household income was lower in remote areas compared with non-remote areas for Indigenous people ($539 per week in Major Cities and $329 in Very Remote Areas).

For non-Indigenous people, mean equivalised household income was highest in Very Remote Areas ($812) and lowest in Outer Regional Areas ($644).


Mean Equivalised Gross Household Income (a) (b), 2006
Remoteness
Indigenous ($)
Non-Indigenous ($)
Major Cities
539
779
Inner regional
450
645
Outer Regional
448
644
Remote
433
752
Very Remote
329
812
(a) Based on place of usual residence, Census 2006.
(b) Comprises persons in households in which there were no temporarily absent adults and all incomes were fully stated.
Source: Population Characteristics, Aboriginal and Torres Strait Islander Australians, Australia, 2006 (cat. no. 4713.0).


Mean Equivalised Gross Household Income (a) (b), 2006

(a) Based on place of usual residence, Census 2006
(b) Comprises persons in households in which there were no temporarily absent adults and all incomes were fully stated
Source: Population Characteristics, Aboriginal and Torres Strait Islander Australians, Australia, 2006 (cat. no. 4713.0).


Household Income Distribution
There are many ways to analyse household income distribution; the most common method is to use quintiles. When people are ranked from lowest to the highest on the basis of some characteristic such as their household income, they can then be divided into equally sized groups (in this case five groups).

When the population is divided into five equally sized groups, each quintile represents 20% of the population. The first quintile will comprise the lowest 20%, and the fifth (or highest) quintile comprises the top 20% of the population.

At the time of the 2006 Census, 45% of all Indigenous people were in the lowest income quintile compared to 20% of non-Indigenous people. Almost 70% of Indigenous people where in the lowest two income quintiles, compared to 40% of non-Indigenous people.

At the highest income quintile there was only 6% of all Indigenous people compared to 20% of non-Indigenous people.


Household Income Quintiles (a) by Indigenous status (b), 2006
Household Quintile
(Income per week)
Indigenous
%
Non-Indigenous
%
Lowest (less than $315 )
45.2
19.6
Second ($315-$515)
24.6
19.4
Third ($516-$742)
14.4
20.1
Fourth ($743 - $1077)
10.2
20.6
Highest ($1078 or more)
5.6
20.3
(a) Based on equivalised household income per week, Census 2006.
(b) Residents of occupied private dwellings, in which there were no temporarily absent adults and all incomes were fully stated.
Source: Population Characteristics, Aboriginal and Torres Strait Islander Australians, Australia, 2006 (cat. no. 4713.0).

    Household Income Quintiles (a) by Indigenous status (b), 2006
    Graph of quintiles
    (a) Based on equivalised household income per week, Census 2006
    (b) Residents of occupied private dwellings, in which there were no temporarily absent adults and all incomes were fully stated.
    Source: Population Characteristics, Aboriginal and Torres Strait Islander Australians, Australia, 2006 (cat. no. 4713.0).


    Further Information: See Population Characteristics, Aboriginal and Torres Strait Islander Australians, Australia, 2006 (cat. no. 4713.0).


    Commonwealth of Australia 2008

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