CLASSIFICATION AND CODING
THE STANDARD CLASSIFICATION AND CODE STRUCTURE
9. 'Principal source of cash income' is classified to the Standard classification of sources of cash income detailed in the 'Framework for standard cash income variables'.
Supplementary codes
10. The code structure for this variable differs from that used for 'Sources of cash income' in that there is a supplementary code '0999 Not applicable' that applies to units the value of whose Total cash income is zero or negative.
CODING PROCEDURES
11. In the HES and SIHC, principal source for income unit, family and household can be calculated by summing receipts reported by each member of the unit for each source and comparing those amounts. In surveys not using the full question module, information about main source of income has to be elicited for each level of unit for which 'Principal source of cash income' is to be output.
12. The principal source will not necessarily provide more than half of 'Total cash income'. Application of the variable at different levels of the classification can also affect identification of the principal source. (See 'Classification and coding' in the 'Framework for standard cash income variables' for the detailed structure of the Standard classification of sources of cash income.)
13. For example, a theoretical person might receive $200 per week from a part time job, $180 per week from their superannuation fund, $120 per week from rental on their granny flat and $15 per week from the Age Pension.
14. At the broadest level of the classification, the 'Principal source of cash income' would be Other cash income ($300, i.e. $120 rent plus $180 super) followed by Employee cash income ($200) and Government pensions and allowances ($15). At a more detailed level of the classification, the 'Principal source of cash income' would be Employee cash income ($200), followed by Superannuation/annuities ($180), followed by property cash income from rent ($120) followed by Government pensions and allowances ($15).
15. In practice, data collected in most household surveys does not support published output of estimates except at the broadest level of the classification. Certain output tables from the HES disaggregate Government pensions and allowances to the second level.
Equal sources
16. Where a unit receives equal amounts from two or more sources of cash income, the unit's characteristics are not expected to resemble those of units whose 'Principal source of cash income' is either or any of the equal sources.
17. In this situation it is considered most appropriate to code the unit to the subpopulation where its inclusion will impact least on estimates. In the case of such 'ties', therefore, the unit is coded to the source representing the greatest proportion of units output. This prevents the unit's other characteristics from exercising a large impact on the characteristics of smaller populations. In practice, the unit is coded to the category with the lower code number, where it almost always has least impact.
18. For example, in a population where 60% of units surveyed have Employee cash income and 20% have Other cash income as their principal source, a unit with equal receipts from wages (Employee cash income) and dividends (Other cash income) would be coded to Employee cash income, the code representing the principal source of the largest proportion of units in the sample.
19. The ABS is currently revising procedures for deriving 'Principal source of cash income'. Those proposing to collect detailed 'Sources of cash income' and to derive 'Principal source of cash income' should seek advice from ABS on the treatment of equal sources should the need arise. Contact the Standards Support Hotline on 02 6252 5736 in the first instance
Zero and negative sources
20.Units whose Total cash income sums to zero or a negative value are coded to '0999 Not applicable' for 'Principal source of cash income'. Such units must, however, be enumerated in totals when tabulating 'Principal source of cash income', with the total footnoted to indicate their inclusion.
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