CHAPTER 3 — RESULTS: MAIN SOURCE OF INCOME, HOUSEHOLD COMPOSITION AND AGE OF REFERENCE PERSON


This chapter presents graphs and tables with accompanying text for the distributions of the ASNA household income, consumption and wealth estimates by household distributional indicators: main source of income; household composition; and age of household reference person. As stated in chapter 2, the term 'total household' and the term 'all households' (term used by ABS micro publications) have equivalent meaning in this information paper. To assist with the interpretability of the graphs below, the item 'average of all household' is introduced, it is derived by dividing the ASNA total household estimate by the total number of households in Australia.


INCOME

The income graphs below are based on the detail distributional information published in electronic tables 3,4 and 8.


(a) Compensation of Employees

In 2009-10, compensation of employees (COE) averaged $70,173 for all households. Households where main source of income (MSI) was wages and salaries, received on average, $114,850 in COE, which was 1.64 times the average for all households. Households with MSI from property income and superannuation, and income from unincorporated business (includes the imputed income from owner occupied dwellings) received 19% and 17%, respectively of the average COE for all households.

Households with two adults or more with dependent children, on average received $114,547 in COE, which was 1.63 times the average for all households, $70,173. Lone person households where the reference person was under 65 years, and one parent households with dependent children, received, 64% and 46% of the average COE for all households.

Households where the age of reference person was 45-54 years, on average received $102,518 in COE, which was 1.46 times the average for all households, $70,173. Households where the age of reference person was 15-24 years, received 82% of the average COE for all households.
(b) Gross Mixed Income



In 2009-10, gross mixed income (GMI) averaged $11,402 for all households, GMI includes both operating surplus for unincorporated enterprises and returns for the proprietors' own labour. Households where main source of income (MSI) was income from unincorporated business (includes the imputed income from owner occupied dwellings) received, on average, $90,237 in GMI, which was 7.91 times the average for all households. Households whose MSI was from property income and superannuation, received 2.08 times the average GMI for all households.

Households with two adults or more with dependent children, on average received $20,316 in GMI, which was 1.78 times the average for all households, $11,402. Lone person households where the reference person was under 65 years, and one parent households with dependent children, received, 51% and 29% of the average GMI for all households.

Similar distributions are displayed for GMI for households where the age of reference person was 35-44 years, 45-54 years and 55-64 years, these households on average received, $14,844, $15,270, and $15,173, respectively in GMI. These three categories of households were approximately 1.3 times the average GMI for all households.
(c) Gross Operating Surplus - Dwellings Owned by Persons



In 2009-10, gross operating surplus, dwellings owned by persons (GOS Dwellings), averaged $10,415 for all households, GOS Dwellings relates to the operating surplus of households from the ownership of their dwelling. Households where the main source of income (MSI) was property income and superannuation, and income from unincorporated business (includes the imputed income from owner occupied dwelling), recorded on average, $13,814 and $13,536 in GOS Dwellings, respectively, both groups of households recorded 1.3 times the average GOS Dwellings for all households.

Households with two adults or more with dependent children, on average recorded, $14,759 in GOS Dwellings, which was 1.42 times the average for all households, $10,415. Lone person households where the reference person was under 65 years and one parent households with dependent children, both recorded 68% of the average GOS Dwellings for all households.

Households where the age of reference person was 35-44 years, on average received, $13,007 in GOS Dwellings, which was 1.25 times the average for all households, $10,415. Households where the age of reference person was 15-24 years, received 48% of the average GOS Dwellings for all households.
(d) Property Income Receivable



In 2009-10, property income receivable, averaged $14,199 for all households, household property income mainly consists of dividend and interest income earned directly and through superannuation and insurance reserves. Households where main source of income (MSI) was from property income and superannuation, recorded on average, $72,087 in property income, which was 5.08 times the average for all households. Households with MSI from wages and salaries, recorded 87% of the average property income for all households.

Couple only households where the reference person was 65 years and over, on average recorded $24,448, in property income, which was 1.72 times the average for all households, $14,199. By comparison a lone person households where the reference person was 65 years and over recorded 67% of the average property income for all households.

Households where the age of reference person was 55-64 years, on average recorded $ 23,401, in property income, which was 1.65 times the average for all households, $14,199. Households where the age of reference person was 25-34 years, recorded 34% of the average property income for all households.
(e) Social Assistance Benefits



In 2009-10, social assistance benefits averaged $11,514 for all households, social assistance benefits consists of cash payments from government for such things as unemployment benefits, family allowances and age and invalid pensions. Households where main source of income (MSI) was government pensions and allowances, received on average, $27,827 in social assistance benefits, which was 2.42 times the average for all households. Households with MSI from wages and salaries received 50% of the average social assistance benefits for all households.

One parent households with dependent children and couple only households where the reference person was 65 years and over, on average, received $24,594 and $23,189 in social assistance benefits, which was 2.14 and 2.01 times, respectively the average for all households, $11,514. The smallest amount of social assistance benefits on average was received by couple only households where the reference person was under 65 years and lone person households where reference person was under 65 years, they received 39% and 44% of the average social assistance benefits for all households.

Households with a reference person 65 years or more, on average received, $20,186 from social assistance benefits, which was 1.75 times the average for all households, $11,514. Households where the age of reference person was 35-44 years, received 90% of the average social assistance benefits for all households.
(f) Interest Payable



In 2009-10, interest payable, averaged $8,547 for all households, household interest payable mainly consists of mortgage interest. Households where main source of income (MSI) was unincorporated business (includes the imputed income from owner occupied dwelling), recorded on average, $15,096 in interest payable which was 1.77 times the average for all households. Households with MSI from wages and salaries, recorded on average, $11,296, which was 1.32 times of the average interest payable for all households.

Households with two adults or more with dependent children, on average recorded, $15,384 in interest payable, which was 1.8 times the average interest payable for all households, $8,547. Lone person households where the reference person was under 65 years, and one parent households with dependent children, recorded 61% and 58% of the average interest payable for all households.

Households with a reference person 35-44 years, on average recorded $13,373 of interest payable, which was 1.56 times the average for all households, $8,547. Similar distributions are recorded in interest payable by households with the age of reference person 25-34 years and 45-54 years, 1.29 and 1.33 times, respectively the average interest payable for all households.
(g) Income Tax Payable



In 2009-10, income tax payable, averaged $14,855 for all households. Household where main source of income (MSI) was wages and salaries, recorded on average, $22,477 in income tax payable, which was 1.51 times the average income tax payable for all households. Households with MSI from property income and superannuation, recorded on average, $9,496 in income tax payable, which was 64% the average income tax payable for all households.

Households with two adults or more with dependent children, on average recorded, $25,995 of income tax payable, which was 1.75 times the average for all households, $14,855. Lone person households where the reference person was under 65 years, and one parent households with dependent children, recorded 66% and 35% of the average income tax payable for all households.

Households with a reference person 45-54 years, on average recorded $21,922 in income tax payable, which was 1.48 times the average income tax payable for all households, $14,855. A similar distribution is displayed by households with the age of reference person 35-44 years, 1.42 times the average income tax payable for all households.
(h) Social Transfers in Kind



In 2009-10, social transfers in kind (STiK), averaged $20,423 for all households, STiK consists of in kind payments by government and non-profit institutions, either free of charge or at prices not economically significant, examples are education and health services. Households where main source of income (MSI) was government pensions and allowances, received on average, $28,437 in STiK, which was 1.39 times the average STiK for all households. Households with MSI from wages and salaries, received on average, $18,029 in STiK, which was 88% the average STiK received for all households.

Households with one parent with dependent children, on average received $33,339 in social transfers in kind (STiK), which was 1.63 times the average STiK for all households, $20,423. This household group was closely followed by households with two adults or more with dependent children, who received 1.56 times the average STiK for all households, $31,827. Lone person households where the reference person was under 65 years, and lone person households where the reference person was over 65 years, received 36% and 79% respectively of the average STiK for all households.

Households with a reference person 35-44 years, on average received, $25,695 in STiK, which was 1.26 times the average STiK for all households, $20,423. These households were followed by households with the age of reference person 65 years or older, 1.16 times the average STiK of all households. By comparison the least amount of STiK was received by households with reference person 15-24 years and 25-34 years, 67% and 70% respectively, of the average STiK of all households.
(i) Superannuation Benefits Received (memorandum item)



In 2009-10, superannuation benefits received by households, averaged $7,100 for all households. Households where main source of income (MSI) was property income and superannuation, received on average, $74,528 in superannuation benefits, which was 10.5 times the average for all households. Households with MSI from government pensions and allowances received 40% of the average superannuation benefits received for all households.

Couple only households where the reference person was 65 years and older, on average received $29,826 in superannuation benefits, which was 4.2 times the average for all households, $7,100. Lone person households where the reference person was over 65 years, received on average, $10,844, which was 1.53 times the average superannuation benefits paid for all households.

In 2009-10, superannuation benefits received, averaged $7,100 for all households. Households with a reference person 65 years and older, received 2.67 times the average superannuation benefits for all households, these households were followed by households with a reference person 55-64 years, who received 2.15 times the average for all households.
(j) Disposable Income



In 2009-10, gross and adjusted disposable income averaged $93,864 and $114,287, respectively for all households. The difference between the two income measures is that adjusted disposable income includes social transfers in kind and gross disposable income excludes these transfers. Households with main source of income (MSI) wages and salaries, received 1.22 and 1.16 times, respectively the average gross and adjusted disposable income for all households. Households with main source of income, government pensions and allowances, received 41% and 59%, respectively of the average gross and adjusted disposable income for all households.

In 2009-10, gross and adjusted disposable income averaged $93,864 and $114,287, respectively for all households. Households with two adults or more with dependent children received 1.43 and 1.45 times, respectively the average gross and adjusted disposable income for all households. Lone person households with the reference person over 65 years, received 36% and 44%, respectively of the average gross and adjusted disposable of all households.

In 2009-10, gross and adjusted disposable income averaged $93,864 and $114,287, respectively for all households. Households with the reference person 45-55 years received, 1.29 and 1.25 times, respectively the average gross and adjusted disposable income for all households. Households with reference person 15-24 years received 67% of the average gross and adjusted disposable income for all households.
(k) Impact of redistribution measures by government and non-profit institution serving household (NPISH)

Table 3.1 and the graphs below presents total household gross disposable income (GDI) and the share of total household GDI in a step by step format, each step includes an income receivable or payable component that illustrate the impact of the redistribution of income by government and NPISH. The graphs below are based on the detail distributional information published in electronic table 8.

• Step 1: gross disposable income (GDI) before the addition of income from government social assistance benefits (cash) and the payment of income tax;
• Step 2: step 1 GDI less income taxes payable;
• Step 3: step 2 GDI plus income from government social assistance benefits (cash);
• Step 4: step 3 GDI plus government and NPISH payments to household from social transfers in kind (STiK).

Table 3.1, ASNA total household gross disposable income, impact of government and NPISH redistribution - 2009-10
Steps	$m
GDI (before tax and social assistance benefits)	855 298
GDI (after tax and before social assistance benefits)	721 228
GDI (after tax and social assistance benefits)	822 069
GDI (after tax, social assistance benefits and social transfers in kind)	1 000 933

Households with main source of income (MSI) wages and salaries, the share of total household income decreased with each step, by comparison households with MSI government pensions and allowances, the share of total household income increased in each step. For households with MSI property income and superannuation, the share of total household income increased by step 2 (payment of income taxes), and declined in step 3 and 4 (transfer payments in cash and kind).

Lone person households where the reference person was over 65 years, one parent households with dependent children, and couple only households where the reference person was 65 years and over, the share of total household income increased with each step. For lone person households where reference person was under 65 years, the share of total household income decreased in each step. For households with two adults or more with dependent children, the share of total household income decreased in each step up to step 3, and then increased in step 4 (StiK payments).

Households with age of reference person 65 and over, the share of total household income increased with each step. By comparison, households with age of reference person 25-34 years and 45-54 years, the share of total household income decreased with each step. For households with age of reference person 35-44 years, the share of total household income decreased in each step up to step 3, and then increased in step 4 (StiK payments).
CONSUMPTION AND SAVING

The consumption and savings graphs below are based on the detail distributional information published in electronic tables 3, 4 and 6.


(a) Final Consumption Expenditure



In 2009-10, final consumption expenditure (FCE) averaged $77,233 for all households. Households where main source of income (MSI) was wages and salaries, consumed on average $90,915 in FCE, which was 1.18 times the average for all households. Households with MSI from government pensions and allowances, consumed 55% of the average FCE for all households.

Households with two adults or more with dependent children, on average consumed $104,738 in FCE, which was 1.36 times the average FCE for all households, $77,233. One parent households with dependent children, consumed $59,997 in FCE, which was 78% of the average FCE for all households, and lone person households where the reference person was under 65 years, consumed on average, $48,015, which was 62% the average FCE for all households.

Households where the age of reference person was 45-54 years, on average consumed $94,586 in FCE, which was 1.22 times the average FCE for all households, $77,233. Households where the age of reference person was 65 years and older consumed 70% of the average FCE for all households.
(b) Actual Individual Consumption

To allow for the fact that the consumption of goods and services by households may be paid for, in cash or in kind, by the general government sector an alternative measure of consumption called actual consumption has been defined. It is measured by first separating government final consumption expenditure (GFCE) into individual and collective consumption. Individual consumption refers to services that are provided by general government to households which are consumed individually, for example health and education. Collective consumption, on the other hand, relates to the provision of public services such as policing and defence. Household actual consumption is measured as household final consumption expenditure plus individual consumption within GFCE.

Table 3.2, Share of actual individual consumption by household composition
		Household Composition
		Lone person under 65	Lone person 65 and over	One parent with dependent children	Couple only, reference person under 65	Couple only, reference person 65 and over	Two adults or more with dependent children	Other Households	Total
		%	%	%	%	%	%	%	%
Actual individual consumption;		100	100%	100	100	100	100	100	100
	Food	7	8	9	9	8	9	8	9
	Alcoholic beverages and tobacco	4	2	3	3	2	2	4	3
	Clothing and footwear	2	2	3	3	2	3	3	3
	Rent and other dwelling services	23	23	14	18	18	14	16	17
	Electricity, gas and other fuel	2	2	2	2	2	2	2	2
	Furnishings and household equipment	4	2	3	5	3	4	4	4
	Health	3	5	3	4	4	3	5	4
	Transport	10	4	6	11	5	9	9	9
	Communication	3	2	2	2	1	2	3	2
	Recreation and culture	9	5	8	10	7	9	9	9
	Education services	1	0	1	1	0	3	2	2
	Hotels, cafes and restaurants	6	2	4	7	3	5	7	5
	Miscellaneous goods and services	13	10	7	16	15	11	11	12
Social transfers in kind		13	33	36	10	30	23	17	21
	Health	6	22	7	7	21	7	10	9
	Education	1	1	19	1	0	12	3	7
	Other	6	10	9	2	9	4	5	5
Health including STiK		10	27	11	11	25	10	15	13
Education including STiK		2	1	20	2	0	15	4	8

For Lone person households where reference person was under 65 years, couple only households where the reference person was under 65 years, and for other households, the largest share of actual individual consumption was in rent and other dwelling services, 23%, 18% and 16%, respectively.

For Lone person households where reference person was over 65 years, and couple only households where the reference person was 65 years and over, the largest share of actual individual consumption was in health including health provided by STiK, 27% and 25%, respectively.

For one parent households with dependent children, and households with two adults or more with dependent children, the largest share of actual individual consumption was in education including education provided by STiK, 20% and 15%, respectively.

Similar analysis on actual individual consumption presented above may be derived for household groups, main source of income and age of household reference person.


(c) Saving



In 2009-10, gross saving averaged $16,631 for all households. Households where main source of income (MSI) was wages and salaries, on average, gross saving was $23,905, for MSI income from unincorporated business (including the imputed income from owner occupied dwelling), on average, gross saving was $33, 976, and for MSI income from property income and superannuation, on average, gross saving was $17,808. By comparison, households with MSI government pensions and allowances, and other households, were dis-savers, on average, gross saving was -$3,540 and -$29,946, respectively.

The large dis-saving result for 'other' households is related to over half of the MSI income for other households being derived from other family members not living in the household. These intra household flows are not recorded in the ASNA total household income account, at the total household income level, the intra flows would be consolidated out. However, the ASNA final consumption expenditure estimates are based on consumption that includes the intra household income (pragmatically it is not possible to exclude consumption measures by source of intra household income ), and therefore the total household gross saving estimate in the ASNA is marginally under estimated. In this distributional study, when the household sector is sub categorised into sub sectors by MSI, the under estimate of gross saving is magnified and seen in the 'other' category.

For households with two adults or more with dependent children, on average, gross saving was $29,479, which was 1.77 times the average gross saving for all households, $16,631. Lone person households where the reference person was over 65 years, and one parent households with dependent children, gross saving was 4% and 5%, respectively of the average gross saving for all households.

For households where the age of reference person was 45-54 years, on average gross saving was $26,534, which was 1.6 times the average gross saving for all households, $16,631. Households where the age of reference person was 65 years and older, on average, gross saving was $2,890, which was 17% of average gross saving for all households.
WEALTH

The wealth graphs below are based on the detail distributional information published in electronic tables 3 and 4.


(a) Residential Dwelling and Land



In 2009-10, the value of dwellings and residential land, averaged, $475,135, for all households. Households where main source of income (MSI) was property income and superannuation, the value of dwellings and residential land, on average, was $931,130, which was 1.96 times the average for all households. Households with MSI from wages and salaries, the value of dwellings and residential land, on average, was $498, 789, which was 1.05 times the average for all households.

Couple only households where the reference person was 65 years and over, on average, the value of dwellings and residential land was $649,698, which was 1.37 times the average for all households, $475,135. These households were followed closely by households with two adults or more with dependent children, on average, the value of dwellings and residential land was $628,409, which was 1.32 times the average for all households. Lone person households where the reference person was under 65 years, and one parent households with dependent children, the value of dwellings and residential land was 54% and 47% respectively, of the average for all households.

Households where the age of reference person was 55-64 years, on average, the value of dwellings and residential land was $634,881, which was 1.34 times the average for all households, $475,135. By comparison, households where the age of reference person was over 65 years, on average, the value of dwellings and residential land was $494,169, which was 1.04 times the average for all households.
(b) Financial Assets- Currency and Deposits, Shares and Other Equity, and Superannuation and Insurance Reserves



In 2009-10, currency and deposits, shares and other equity, and superannuation and insurance reserves, holdings averaged, $68,435, $69,748 and $173,932 respectively, for all households. Households where main source of income (MSI) was property income and superannuation, wages and salaries, income from unincorporated business, and government pensions and allowances, on average, the superannuation and insurance reserve balances were $603,743, $190,490, $182,434 and $32,222 respectively. Households where MSI was government pensions and allowances, the largest financial asset was currency and deposits, on average the holdings were, $44,648, which was 65% of the average currency and deposit balances for all households.

Couple only households where the reference person was 65 years and over, had the largest balances in superannuation and insurance reserves, on average, the balances were $289,770, which was 1.67 times the average for all households, $173,932. These households were followed closely by couple only households where the reference person was under 65 years, on average, their balances were $261,936, which was 1.51 times the average for all households. Lone person households where the reference person was over 65 years, on average, the superannuation and insurance reserves balances were, $71,191, which was 41% of the average for all households. Households with two adults or more with dependent children, on average superannuation and insurance reserves balances were $194,753, which was 1.12 times the average for all households.

The largest holdings of shares and other equity was by households where the age of reference person was 45-54 years, on average, shares and other equity assets were $128,328, which was 1.84 times the average shares and other equity holdings for all households, $69,748. For households where the reference person was 55-64 years, shares and other equity holdings were 1.14 times the average of all households, and for households where the reference person is 65 years and more, shares and other equity holdings fell to 85% the average of all households.
(c) Liabilities - Loans



In 2009-10, loan liabilities averaged $159,345 for all households, majority of these household loans were for dwellings. Households where main source of income (MSI) was wages and salaries, loan liabilities on average were $224,224, which was 1.41 times the average for all households. Households with MSI from government pensions and allowances, loan liabilities on average were $16, 656, which was 10% of the average for all households.

Households with two adults or more with dependent children, on average loan liabilities were $285,867, which was 1.79 times the average loans for all households, $159,345. Lone person households where the reference person was under 65 years, and one parent households with dependent children, loan liabilities were 62% and 61% respectively, of the average for all households.

Households where the age of reference person was 35-44 years, on average the loan liabilities were $251,438, which was 1.58 times the average for all households, $159,345. Households where the age of reference person was 15-24 years, on average the loan liabilities were $78,805, which was 49% of average for all households.
(d) Net Worth



In 2009-10, net worth averaged $720,634 for all households. Households where main source of income (MSI) was property income and superannuation, net worth on average was $2,283,628, which was 3.17 times the average for all households. Households with MSI from wages and salaries, net worth on average was $647,098, which was 90% of the average net worth for all households.

For couple only households where the reference person was 65 years and over, on average, net worth was $1,241,592, which was 1.72 times the average net worth for all households, $720,634. Lone person households where the reference person was over 65 years, and one parent households with dependent children, net worth was 73% and 34%, respectively of the average net worth for all households.

Households where the age of reference person was 55-64 years, on average net worth was $1,153,427, which was 1.6 times the average net worth for all households, $720,634. Households where the age of reference person was 25-34 years and 35-44 years, on average, net worth was $206,270 and $516, 828, which was 29% and 72%, respectively of average net worth for all households.