Household income account
21.168 State household income accounts are estimated using the top-down approach. A range of indicators are used to allocate national totals to state.
21.169 In concept, the household sector of a state consists of household units which have permanent residence within the state. This is independent of where household units work or undertake business activities. It follows that workers who work in a state other than their state of residence should be reallocated to their place of residence rather than their place of work. Data sources do not permit this reallocation. Therefore, an assumption is made that all workers work in their state of residence.
21.170 Household net saving is not produced at the state level because of the unavailability of state consumption of fixed capital for households. Consequently, gross household saving is estimated directly unlike net saving in the national accounts.
21.171 The following table outlines the components of the household income and data sources used to allocate the national total across the states:
| Item | Comment | |
|---|---|---|
| Primary income receivable | ||
| Compensation of employees | ||
| State household COE estimates are split using the top-down approach using state estimates of COE from the gross state product account. The Australia-level household estimate is COE adjusted for labour income to and from overseas. There is no adjustment for interstate workers with assumption being that employees work in their state of residence. | ||
| Gross mixed income | ||
Estimates of GMI by state are compiled from agriculture and non-agriculture components. State estimates of agricultural unincorporated enterprises are split using the top-down approach using agricultural production by state. The assumption is made that the high concentration of unincorporated enterprises in agriculture observed at the national level is consistent across all states. GMI of non-agricultural unincorporated enterprises is split to state using the proportions of business income of unincorporated enterprises (i.e. individuals, partnerships and trusts) from Taxation Statistics, as well as business income data from the ABS publication, Household Income and Wealth, Australia. | ||
| Dwelling owned by household - gross operating surplus | ||
| State estimates are split using the top-down approach using GOS dwellings by state produced for the production account. The Australia-level dwelling owned by household GOS is total dwellings GOS adjusted for dwellings owned by other sectors of the economy. The assumption is made that ownership of dwellings for sectors other than households occurs in the same proportion in all states. | ||
| Property income | ||
| Property income is sourced from state interest and dividends data from the ATO taxation statistics publications. | ||
| Secondary income receivable | ||
| Social assistance benefits | ||
| Social assistance benefits include benefits received from government, and is sourced from Government Finance Statistics. Commonwealth data is allocated to states using estimates from the ABS publication, Household Income and Wealth, Australia for total government pensions and allowances. | ||
| Workers' compensation claims | ||
| State estimates are split using the top-down approach using state workers' compensation premiums data used to compile state COE estimates. This assumes that claims are paid in the same proportion as premiums across states. | ||
| Non-life insurance claims | ||
| State estimates are split using the top-down approach using estimated resident population. Some adjustment is undertaken for large natural events such as cyclones and floods. | ||
| Current transfers to non-profit institutions (NPIs) | ||
| Consistent with the national accounts, the NPISH sector is included as part of the household sector. Data for current transfers is sourced from Government Finance Statistics, and is allocated to states using estimates resident population from the ABS publication, National, state and territory population. | ||
| Other transfers receivable | ||
This is split between transfers made by immigrants to Australia and remaining miscellaneous transfers. Immigrant transfers are split using the top-down approach to states using state overseas arrivals data from the ABS publication, National, state and territory population. Remaining transfers receivable are split using the top-down approach using ERP data. | ||
| Total gross income | ||
Total gross income = primary income receivable + secondary income receivable. | ||
| Primary income payable | ||
| Dwellings interest payable | ||
| Dwellings interest is split using the top-down approach to states using a cumulative aggregation of new loan commitments over a fifteen-year period from the ABS publication, Housing Finance, Australia (ceased) A cumulative aggregation is compiled due to the long life span of dwelling loans. | ||
| Consumer debt interest payable | ||
| State consumer debt interest is split using the top-down approach using fixed loans and revolving credit data directly from the ABS publication, Lending Finance, Australia. | ||
| Unincorporated enterprises payable | ||
| State unincorporated interest payable is split using the top-down approach using business interest paid components from ATO taxation statistics. | ||
| Secondary income payable | ||
| Income tax payable | ||
| Income tax payable is split to states based on the top-down approach, using income tax by state data. This is received with a two-year lag. A combination of state COE and state GMI estimates are used to estimate state splits for the latest two years. | ||
| Other current taxes on income, wealth, etc. | ||
| Other current taxes on income, wealth, etc. are split to states using the top-down approach using income tax by state data from ATO taxation statistics and GFS data. | ||
| Workers' compensation premiums | ||
| State estimates are split using the top-down approach using state premiums data used to compile state COE estimates. | ||
| Net non-life insurance premium payments | ||
| State estimates are split using the top-down approach using ERP estimates. Some adjustment is undertaken for large natural events such as cyclones and floods. | ||
| Other current transfers payable | ||
This comprises transfers to migrants leaving Australia as well as current transfers to other sectors i.e. miscellaneous current transfers such as fines and pensions paid to non-residents. Migrant transfers are split using departures data from the ABS publication, National, state and territory population. Miscellaneous current transfers are allocated to states using ERP estimates. | ||
| Total income payable | ||
Total income payable = primary income payable + secondary income payable | ||
| Gross disposable income | ||
Gross disposable income = total income receivable – total income payable | ||
| Household gross saving | ||
Household gross saving = gross disposable income – household final consumption expenditure This is equivalent to net saving plus consumption of fixed capital as published in the national accounts, since consumption of fixed capital is not separately allocated by state. | ||