Income statistics

Income statistics provide policy makers and economic analysts with insights into a range of issues such as poverty, housing affordability, cost-of-living impacts, and the effects of taxes and government transfers on the population. Such insights are crucial for identifying where intervention may be needed and informing decisions that impact the economic wellbeing of all Australians.

The ABS Standard for Income Variables is used when preparing income statistics to help ensure that they are produced in a consistent and comparable manner. 

The conceptual definition used in the ABS standard is based on the one set out by the International Conference of Labour Statisticians and further explained in the Canberra Group Handbook on Household Income Statistics. It states that:

“Household income consists of all current receipts, whether monetary or in kind, that are received by the household or by individual members of the household, which are available for, or intended to support, current consumption by the household”.

The household unit is important to consider when analysing economic wellbeing. The ABS concept of a household defines it as one or more persons, at least one of whom is at least 15 years of age, usually resident in the same private dwelling.

While income is typically obtained at the individual level, it is often analysed at the household unit. This is because it is assumed that income is shared within a household to support consumption needs such as rent or mortgage payments and utility bills etc. 

The income standard defines six types of income. Together these determine total (gross) income. Each type is summarised below.

Income can be measured in different ways depending on the purpose it is used for. Two common measures of income produced by ABS are:

• ‘Annual income’ is the income from all types received over the period of a year. Often this relates to a financial year (July 1 to June 30).
• ‘Current income’ is the income that is available at a specific time point and aligns with the individual and household characteristics provided at this time. 

Compared to annual income, current income aligns more closely with the ABS conceptual definition of income. Analysing current income alongside other point-in-time circumstances is usually most appropriate for understanding the financial wellbeing of individuals or households. Current income may also be more appropriate for analysing groups with changing circumstances, income, or expenditure patterns throughout the year (e.g., new parents, first home buyers, seasonal workers, recently retired individuals).

Annual income statistics may be output as an annual amount or converted to a weekly amount. Current income is typically output as weekly or monthly amounts.