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CONSTRUCTING THE INDEXES
These criteria aim to ensure that the largest number of areas receive a score, while maintaining an acceptable level of quality and confidentiality.
The indexes are a weighted combination of Census variables. The method used to determine the weights and final variable composition is called Principal Component Analysis (PCA). The weights describe the relative importance of each variable. If the weight created by PCA for a particular variable is too low, the variable is dropped from the index. These variables do not meaningfully contribute to the indexes.
Note that the variable weights are calculated by a data-driven method. They are not determined subjectively by the ABS.
If you wish to learn more about PCA, please refer to Chapter 4 of theáSEIFA 2016 Technical Paper (available from the Downloads tab).
Once the variable weights have been finalised, they are used together with the variable proportions to create index scores for SA1s across Australia. The interpretation of the index scores and associated output is discussed ináthe "SEIFA Measures" section of this guide.
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2033.0.55.001 - Census of Population and Housing: Socio-Economic Indexes for Areas (SEIFA), Australia, 2016 Quality Declaration
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 27/03/2018