INCOME FROM UNINCORPORATED BUSINESSES
Although 15% of income earners in Australia earned some income from an unincorporated business in 2009-10, this source of income only made up 6% of total income earned from all sources. Income from all sources excludes income received from government pensions and allowances throughout this article (see explanatory notes for more information).
In 2009-2010, people earned over $37 billion from unincorporated businesses, compared to the $588 billion of income earned from all sources (see table below). The contribution of unincorporated business income to total income varied little in the states and territories, ranging from 7% in New South Wales, South Australia, Western Australia and Tasmania, to 4% in the Australian Capital Territory.
When comparing the capital cities to the rest of the states or territories, there was no consistent pattern. Unincorporated business income contributed most to total income in the rest of South Australia, where it represented 9% of total income earned. However, in New South Wales, Tasmania and the Northern Territory, income from unincorporated businesses made a greater contribution to total income in the capital cities. In South Australia, Queensland and Western Australia, the contribution of unincorporated business income was larger in the rest of the states.
On average, people earned less from unincorporated businesses than from other sources of income. In 2009-10, the average (mean) income of business owners was $20,023, compared to the average income earned from all sources, of $48,530. This is not surprising, as it is likely that many of the business owners included in this analysis carried out their business as a second job or a source of supplementary income. Of the states and territories, the Australian Capital Territory had the highest average unincorporated business income, of $25,297.
Although, as has been shown, greater capital cities tended to have lower proportions of business owners, average incomes from unincorporated businesses were higher in capital cities than in the rest of the states and Northern Territory. This regional pattern was also reflected in average income from all sources. Of the capital cities, Greater Perth had the highest average unincorporated business income ($27,790) and Greater Sydney had the highest average income from all sources ($55,010).
TOTAL INCOME AND AVERAGE INCOME BY REGION(a)- 2009-2010
|
| Region | Total income from unincorporated businesses | Total income from all sources | Total income from unincorporated businesses as proportion of total income from all sources(b) | Average income from unincorporated businesses(c) | Average income from all
sources(c) |
 | $ million | $ million | % | $ | $ |
|
| New South Wales | 12 568 | 193 496 | 7 | 21 025 | 50 328 |
| Greater Sydney | 9 081 | 137 354 | 7 | 26 533 | 55 010 |
| Rest of NSW | 3 451 | 55 304 | 6 | 13 595 | 41 537 |
| Victoria | 8 747 | 143 507 | 6 | 19 309 | 47 623 |
| Greater Melbourne | 6 972 | 114 270 | 6 | 23 146 | 50 413 |
| Rest of Vic. | 1 750 | 28 740 | 6 | 11 670 | 38 995 |
| Queensland | 6 395 | 111 593 | 6 | 16 806 | 45 844 |
| Greater Brisbane | 3 223 | 57 567 | 6 | 21 675 | 48 895 |
| Rest of Qld. | 3 166 | 53 836 | 6 | 13 684 | 42 981 |
| South Australia | 2 921 | 39 394 | 7 | 20 042 | 44 312 |
| Greater Adelaide | 2 210 | 31 762 | 7 | 23 130 | 46 041 |
| Rest of SA | 702 | 7 564 | 9 | 14 029 | 38 213 |
| Western Australia | 5 050 | 69 547 | 7 | 24 757 | 53 397 |
| Greater Perth | 4 001 | 55 960 | 7 | 27 790 | 54 728 |
| Rest of WA | 1 003 | 13 012 | 8 | 17 245 | 48 234 |
| Tasmania | 747 | 11 192 | 7 | 16 860 | 41 542 |
| Greater Hobart | 360 | 5 265 | 7 | 21 237 | 44 358 |
| Rest of Tas. | 386 | 5 881 | 7 | 14 209 | 39 216 |
| Northern Territory | 261 | 5 604 | 5 | 20 294 | 51 366 |
| Greater Darwin | 197 | 3 672 | 5 | 23 278 | 53 747 |
| Rest of NT | 32 | 1 245 | 3 | 12 602 | 47 153 |
| Australian Capital Territory | 548 | 13 137 | 4 | 25 297 | 58 034 |
|
| Australia(d) | 37 257 | 588 141 | 6 | 20 023 | 48 530 |
|
| (a) Greater Capital City Statistical Areas are defined in the Australian Statistical Geography Standard (ASGS): Volume 1 - Main Structure and Greater Capital City Statistical Areas, 2011. |
(b) Percentages calculated on total figures not rounded figures.
(c) Average income refers to the mean. |
| (d) Australia includes Other Territories. |
| Source: ABS, Estimates of Personal Income for Small Areas, 2009-2010. |
The average incomes earned from unincorporated businesses varied greatly among SA4s in 2009-10. The ten SA4s with the highest average incomes from unincorporated businesses were all located in greater capital cities, with Perth - Inner (WA) the highest at $56,363, followed by Sydney - North Sydney and Hornsby (NSW) at $51,373. Outside of the capital cities, the region with the highest average income from unincorporated businesses was Newcastle and Lake Macquarie (NSW), with $24,090.
The ten SA4s with the lowest average incomes from unincorporated businesses in 2009-10 were all rural in nature. Two of these were located in New South Wales, four in Victoria and four in Queensland, including Darling Downs - Maranoa (Qld) which recorded the lowest average income from unincorporated businesses, of $2,675.
These results are likely to reflect various influences on average income. For example, there may be more business owners in some regions who carry out their business as a second job. It may also reflect the work that business owners tend to undertake in those regions. For example, income from businesses in the agriculture, forestry and fishing industry may have been low in some regions in 2009-10, due to weather conditions or economic factors, such as global commodity prices and the value of the Australian dollar. For more information about agricultural production, see
Value of Agricultural Commodities Produced, Australia, 2009-10 (cat. no. 7503.0).
HIGHEST AND LOWEST AVERAGE INCOME FROM UNINCORPORATED BUSINESSES BY SA4(a)(b) - 2009-2010
|
| Top 10 SA4s | Average income
($) |
|
| Perth - Inner (WA) | 56 363 |
| Sydney - North Sydney and Hornsby (NSW) | 51 373 |
| Sydney - Eastern Suburbs (NSW) | 45 342 |
| Melbourne - Inner East (Vic.) | 39 787 |
| Brisbane Inner City (Qld.) | 39 006 |
| Brisbane - West (Qld.) | 33 755 |
| Adelaide - Central and Hills (SA) | 32 299 |
| Melbourne - Inner South (Vic.) | 31 725 |
| Melbourne - Inner (Vic.) | 31 445 |
| Sydney - Inner West (NSW) | 30 133 |
|
| Bottom 10 SA4s | |
|
| Darling Downs - Maranoa (Qld.) | 2 675 |
| Shepparton (Vic.) | 6 602 |
| New England and North West (NSW) | 7 617 |
| Fitzroy (Qld.) | 8 036 |
| Queensland - Outback (Qld.) | 9 100 |
| Hume (Vic.) | 9 486 |
| North West (Vic.) | 10 097 |
| Wide Bay (Qld.) | 10 403 |
| Murray (NSW) | 10 476 |
| Latrobe - Gippsland (Vic.) | 10 719 |
|
(a) Average income refers to the mean.
(b) Statistical Areas level 4 are defined in the Australian Statistical Geography Standard (ASGS): Volume 1 - Main Structure and Greater Capital City Statistical Areas, 2011. See explanatory notes for more information.
Source: ABS, Estimates of Personal Income for Small Areas, 2009-2010. |
The contribution of income from unincorporated businesses to total income from all sources in SA4s varied from 2% in Darling Downs - Maranoa (Qld.) and Northern Territory - Outback, to 11% in Western Australia - Wheat Belt. Income from unincorporated businesses also made a large contribution to total income in Perth - Inner (WA), Barossa - Yorke - Mid North (SA), Adelaide - Central and Hills (SA) and South Australia - South East (SA) (10%). In most SA4s (63%), income from unincorporated businesses contributed between 5% and 8% to total income from all sources.
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