1287.0 - Standards for Cash Income Statistics, 1997
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 19/12/1997
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INTRODUCTION
These variables are used to measure characteristics of the cash income of persons, income units, families and households. It also documents the question modules used in a range of ABS survey vehicles to collect data on these variables and the Standard classification of sources of cash income used to classify the two source variables. 2. The purpose of these standards is to encourage collection of cash income statistics, which contribute to an understanding of economic wellbeing, in a consistent way across a range of ABS and external data collections. 3. The ABS collects Cash income in a range of surveys as a proxy measure or indicator of 'economic wellbeing', a concept similar to standard of living. Since what is of interest is the standard of living that households (and other statistical units) experience on an ongoing basis, the concept is restricted to 'regular and recurring' receipts and specifically excludes receipts derived from running down or selling assets, depleting savings or incurring debts. 4. What is understood to be cash receipts are receipts in currency, negotiable instruments such as cheques, or receipts through electronic transfer on behalf of the recipient. For the owners of unincorporated businesses and rental property, cash receipts are defined as the profit or loss incurred in operating the business or renting the property. All other receipts are regarded as non-cash, or in-kind, receipts, including goods and services, shares, use of a vehicle, and subsidised housing or other services. These fall outside the scope of the cash income framework. 5. The reasons the ABS currently collects cash receipts and excludes in-kind receipts are that the latter can be difficult to collect and imputation of cash equivalent values for aggregation or comparison is not straightforward. However, the ABS has undertaken research into non cash remuneration and is currently evaluating its potential impact on these standards. 6. Receipts from other members of the same household are excluded from the concept of cash income. The economic wellbeing of a household is not increased in aggregate if there is a transfer of resources within the household, since the gain of one person would be the loss of another. 7. Among receipts excluded from the concept of cash income are:
A more detailed list of indicative non-income cash receipts is found at Appendix A: Cash receipts not considered income. 8. To make the concept more useful for the intended purpose, as an indicator of current economic wellbeing, certain exceptions are made to the exclusions in paragraph 7, detailed in the following sections. For example, while regular payments from superannuation funds are conceptually in part a drawing on assets, they are collected as income because they are thought to be an indicator of the current economic wellbeing of their recipients. 9. For both operational and conceptual reasons, detailed below, cash income is collected on a nominally current basis, rather than for some other period; on a nominally usual basis, rather than the actual receipts for a given period; net of costs incurred in earning it, but gross of income tax; and calculated as a weekly equivalent. 10. In summary, then, cash income comprises gross, current, usual, weekly cash receipts of a regular and recurring nature. 11. The main sources from which cash income may be received are:
12. Most of the discussion of conceptual and operational issues in this Framework for cash income document pertains specifically to the variable 'Total cash income'. Because the other two cash income variables classify sources of precisely the receipts comprising 'Total cash income', the discussion is necessary background to understanding those variables, as well. The framework document also specifies the standard collection methods for the cash income variables and the Classification of sources of cash income and appends a glossary and lists of references and cash receipts not considered income. 13. A project reassessing the income standards is intended to start in July 2004 and is expected to be completed by June 2005. This project will examine issues of how economic wellbeing can be best measured, the collection and treatment of in-kind receipts and how best to release income and economic wellbeing data. This standard provides guidance in the current collection and release procedures and practices for income data. Further information can be obtained by contacting the Standards Support Hotline on 02 6252 5736 or by email to: social.classifications@abs.gov.au.
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