1.6 Admin income measurement limitations
Admin income sources have limitations that make them unable to measure income as required by the ABS income standard. The table below provides a summary of these limitations.
| Income type | Admin limitation |
|---|---|
| Employee income | May not capture certain cash or non-cash payments (e.g. cash-in-hand income). Does not fully capture all non-reportable non-cash fringe benefits (valued under $2,000) or incomes from employee share schemes. Includes only those salary-sacrificed amounts used for superannuation contributions. A broader range of amounts salary-sacrificed other purposes (e.g. vehicles, shares, child care) are not included. STP data used excludes certain amounts:
PS data excludes amounts related to 'employee share schemes total assessable discount'. ITR data does not include those who did not file a tax return, as well as certain amounts:
|
| Own unincorporated business income | May include some incomes for businesses that are no longer operating. Includes silent-partner income here, while it is considered investment income according to the ABS income standard. |
| Government pensions and allowances | DOMINO and ITR omit certain payments. These include some from the Department of Veterans’ Affairs, from a state, territory, or overseas government. |
| Investment income | May include income from assets not currently owned by a person. Will exclude investment incomes for low-income earners not required to lodge a tax return. Does not include notional income from offset accounts, which is an estimate of the amount households saved in interest on their loans. |
| Superannuation pensions and annuities | SAE provides information on a person’s balances, not income supplied. This makes it necessary to model income, assumed to be equal to the minimum drawdown requirement. As people can draw an income above this value, underestimation of income is possible. SAE excludes private pensions that are not regulated by the Australian Prudential Regulation Authority, and or annuities purchased outside superannuation. |
| Other current transfers received | Does not include incomes such as transfers from other households, child support workers’ compensation, or scholarships. |