6549.0 - Household Income, Consumption, Saving and Wealth, A Provisional Framework, 1995  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 06/06/1995   
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Contents >> Glossary

Actual final consumption - comprises consumption of goods and services purchased in the market place, consumption of goods and services received as in-kind receipts, and consumption of services provided from within the household. Excludes current transfers outlaid.

Assets - property of a financial or non-financial nature, owned by the household, and from which economic benefits may be derived by holding or use over a period of time. See Financial assets and Non-financial assets.

Capital transfers outlaid - the transfer of ownership of an asset by the household to another household, private institution, charitable organisation or government.

Capital transfers received - receipts which involve the transfer of ownership of an asset from a household, government or private organisation to the recipient household.

Compulsory fees - compulsory payments made by households to government that are associated with regulatory functions of government or the granting of a permit or privilege.

Consumer durables - household items which are deemed to provide continuous or repeated use over a period of at least one year.

Consumption - the 'using up' of services and non-durable consumer goods, i.e. those that have a single use or an otherwise limited life of less than one year. (See household consumption.)

Current transfers outlaid - comprise cash and goods purchased in the period and disbursed by the household to government, to other households, to private institutions or to charitable organisations for consumption by those other entities. Excludes direct taxes.

Dependent child - any person under 15 years of age or any full-time student aged 15-24 years who has a parent or guardian in the household and is neither the spouse nor parent of anyone in the household.

Depreciation - the value of capital consumed in the productive activity. Depreciation allowance is the amount allowed by the Australian Taxation Office for depreciation.

Direct taxes - compulsory unrequited transfers made by households to government.

Dissaving - negative saving during the reference period which derives from the running down of assets or the incurrence of a liability in order to finance current consumption, current transfers or direct taxes.

Dividends - income received from investments in corporate equities, such as ownership of shares.

Employee income - employee earnings i.e. 'remuneration in cash and in kind paid to employees, as a rule at regular intervals, for time worked or work done, together with remuneration for time not worked such as for annual vacation, other paid leave or holidays' (ILO 1971). Also includes employer contributions to superannuation funds.

Employees - persons working for an employer or working for their own corporate enterprise (limited liability company).

Employer contributions to superannuation funds - premiums paid by an employer direct to a superannuation or pension funds on behalf of the employee.

Entrepreneurial income - is the profit or loss that accrues to persons or households as owners of, or partners in, unincorporated enterprises. The measure is net of operating expenses and depreciation allowance.

Family - two or more related people, who usually live together. One of these people must be at least fifteen years of age. The term related applies to relationships of blood, marriage (registered or de facto), adoption, step or fostering.

Final consumption expenditure - the 'using up' of services and non-durable goods that are acquired in the market place in return for money and have been purchased during the reference period.

Financial assets - stocks that entitle their owners (the creditors) to receive a payment from the other unit (the debtor) in certain circumstances. Also includes cash holdings.

Fines - compulsory payments made by households as a result of civil or criminal penalties imposed on law breakers. They exclude fines and penalties imposed by taxation authorities which, for practical reasons, are treated as part of direct taxes.

Household - one person living alone or a group of people who usually reside and eat together. Includes boarders but excludes lodgers who form a separate household.

Household consumption - comprises actual final consumption (consumption of goods and services purchased in the market place, consumption of goods and services received as in-kind receipts, and consumption of services provided from within the household) and current transfers outlaid. Excludes direct taxes, compulsory fees and fines.

Imputed rent from owner-occupied dwelling - the imputed value of the services of (mainly) shelter provided to the household after deduction of expenses and depreciation.

Income - those receipts (in cash and in-kind) that are of a regular and recurring nature, and are received by the household or its members at annual or more frequent intervals. Includes regular receipts from employment, own business and from the lending of assets; transfer income from government, private institutions and other households; the value of services provided from within the household via the use of an owner-occupied dwelling, other consumer durables owned by the household, and unpaid household work. Excludes intra-household transfers and receipts derived from the running down of assets or from the incurrence of a liability.

Income in-kind - regular and recurring receipts obtained by the household in forms other than money. They comprise goods and services resulting from market exchange and services resulting from non-market exchange.

Income unit - one person, or a group of related persons, within a household, whose command over income is shared. The relationships allowed for in the definition of income unit are restricted to those of marriage (registered or de facto) and of parent/dependent child.

In-kind consumption - the 'using up' of goods and services that are acquired from outside the household without the intervention of money, and services provided from within the household.

Interest - comprises receipts from deposits (including term deposits) with banks, building societies, credit unions, and other financial institutions; from government bonds/loans and securities, debentures, and from personal loans to others outside the household.

Liabilities - are defined as all moneys a household owes to government, private institutions or other persons outside the household.

Negative income - the loss accrued by an unincorporated enterprise when the operating expenses and depreciation are greater than the gross receipts.

Net acquisition of non-financial assets - acquisition ( through purchase or transfer) minus disposal (through sale or transfer) of non-financial assets held by the household and unincorporated enterprises owned by the household.

Net disposable income - gross income minus direct taxes, compulsory fees and fines.

Net lending - the excess of net acquisition of financial assets over the net increase in liabilities during the reference period.

Net worth - the difference between a household's stock of assets and its stock of liabilities at a point in time. Excludes human capital.

Nominal holding gains/losses - gains/losses that accrue to the value of assets and liabilities during the reference period that are not due to either transactions or other volume changes.

Non-durable consumer goods - goods deemed to have a single use or otherwise limited life of less than one year.

Non-financial assets - those assets, other than financial assets, that have a lifetime of more than one year. They may be produced or non-produced, tangible or intangible.

Notional wealth annuity - the transformation of the value of a household's stock of assets/liabilities into a right to be paid a (notional) fixed annual sum of money for a defined lifetime.

Operating expenses - comprise all expenses involved in the running of an unincorporated enterprise including interest, rent and indirect taxes.

Other current transfers - all current transfers in cash or in-kind, other than those paid out under government social security and related schemes.

Other government in-kind transfers - indirect benefits provided by government spending other than those that paid out under the social security and related schemes. Excludes spending on 'collective services' such as public administration and defence.

Other non-market income - the imputed value of services, similar to those available for purchase/hire, that are consumed by the household and provided from within the household.

Other pensions and benefits - all pensions and regular superannuation payments that are made other than under the government's social security and related schemes.

Person - is defined as everybody in their capacity as private individuals. It includes individuals as owners of, or partners in, unincorporated enterprises.

Primary income - receipts accruing in cash or in-kind in the current reference period to employees and self-employed persons by virtue of the deployment of their labour and entrepreneurial capacity in productive activity. In-kind receipts are measured as an imputed cash equivalent.

Privately funded superannuation schemes - those funds to which contributions are made by either the individual members or by their employer on the employee's behalf. In contrast to government social security pension schemes which are funded from general revenue.

Profit/loss - of unincorporated enterprises owned by households consists of the value of the gross output of the enterprise after the deduction of operating expenses and the value of depreciation of assets used in production.

Property income - net receipts accruing in the current reference period as a result of ownership of assets.

Rent - receipts (after deducting operating expenses) from property other than owner-occupied dwellings. It includes income from lodgers and from others who are sub-letting parts of the dwelling, but excludes income from boarders who are counted as members of the household. Rent includes that rent received by unincorporated enterprises where it is not included as entrepreneurial income.

Royalties - payments for the use of patented or copyright materials.

Saving - that part of current income (after direct taxes) that is not directly used up or transferred as part of household current consumption. Saving may be positive or negative (dissaving) during any reference period.

Services provided from within the household - the services provided by use of household non-financial assets (owner-occupied dwelling and consumer durables) and by unpaid household work.

Social security pensions, benefits and allowances - regular, recurring cash receipts paid by government to persons, families or households under social security and related government programs.

Social security in-kind concessions - all in-kind transfers received by persons, families or households in special eligibility categories such as recipients of social security and other related benefits, aged persons and students.

Superannuation fund - any fund, association or organisation set up for the purpose of providing a financial benefit to members when they retire from work.

Transfer income - regular and recurring receipts, in cash or in-kind, other than those derived from primary or property income. They do not involve a 'quid pro quo' - e.g. a return for labour, or a return for use of assets.

Unfunded superannuation schemes are - schemes (usually run by government employers) in which employers pay retirement benefits to their employees, ex-employees or their dependents out of their own resources without creating a fund.

Value of services provided by household consumer durables - the imputed value of services provided by household items that are deemed to provide continuous or repeated use over a period of a year or more. Net of depreciation on consumer durables.

Value of unpaid household work - the imputed value of non-market uses of household time that result in the production of a good or service that could be purchased in the market.

Wealth - see Net worth





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