Personal Income of Migrants, Australia

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Statistics on personal income of migrants including employee income, own unincorporated business income, investment income and other income

Reference period
2013-14 financial year
Released
27/07/2017

Key statistics

  • 1.4 million migrant taxpayers generated $84 billion in total personal income in 2013-14, a 7 per cent increase in real terms on 2012-13.
  • Almost two-thirds (64%) were skilled migrants; 29% family migrants, 5% humanitarian migrants and less than 3% held a provisional visa.
  • Most income (90 %) was earned as employee income.
  • The migrant taxpayers' median employee income ($48,400) was higher than the median employee income for all Australian taxpayers ($45,700).

Introduction

This release presents detailed information on the sources of personal income that migrants received in the 2013-14 financial year including;

  • Employee income;
  • Own unincorporated business income;
  • Investment income; and
  • Other income (excluding Government pensions and allowances).
     

The personal income of these migrants is presented by characteristics such as the migrant's entry conditions to Australia (i.e. visa stream, applicant status and location of visa application) as well as country of birth, year of arrival and length of stay. This is the fourth release of data from the Personal Income Tax and Migrants Integrated Dataset (PITMID) project. Previous releases presented data for the 2009-10, 2010-11 and 2011-12 financial years. A separate publication for the 2012-13 financial year has not been released though data for this financial year has been included in time series tables for this publication.

These statistics relate to migrants aged 15 years and over, with a permanent or provisional visa who arrived after 1 January 2000.

This release contains a number of data tables showing the various financial characteristics of permanent migrants, across and within the Skill, Family, Humanitarian and Provisional visa streams. In addition, this release presents three case studies: one on migrant taxpayers born in Sri Lanka, and one each on those holding a Family or a Humanitarian visa. In 2013-14, Sri Lanka was among the top ten most common countries of birth for all Permanent and Provisional visa streams except the Family stream. Whilst there has been an increase from 2012-13 to 2013-14 in the number of migrant taxpayers submitting an income tax return and in the amount of income reported, the proportions of migrants in each of the visa streams and the proportions of income attributed to them has remained relatively stable.

The 2013-14 PITMID has been developed with the support of the Australian Taxation Office (ATO), Department of Immigration and Border Protection (DIBP) and the Department of Social Services (DSS). This initiative demonstrates the power of data sharing and integration in strengthening the evidence base to support stronger policy development, programme delivery and research.

Approach

These statistics have been compiled by linking individual taxpayer unit record data from the ATO and migrant settlement records from the Australian Government's Permanent Migrant Data (PMD). Legislative requirements to ensure privacy and secrecy of this data have been adhered to. In accordance with the Census and Statistics Act 1905, results have been confidentialised to ensure that they are not likely to enable identification of a particular person or organisation. Both the ATO and the ABS handle personal information contained in the data in accordance with the Australian Privacy Principles in the Privacy Act 1988.

The results of these studies are based, in part, on tax data supplied by the ATO to the Australian Bureau of Statistics (ABS) under the Taxation Administration Act 1953, which requires that such data is only used for the purpose of administering the Census and Statistics Act 1905. Any discussion of data limitations or weaknesses is in the context of using the data for statistical purposes, and is not related to the ability of the data to support the ATO's core operational requirements.

Data provided to the ABS by the ATO are from taxation returns processed up to 16 months after the end of the financial year (i.e. returns processed up to 31 October 2015 for the financial year ending 30 June 2014).

When interpreting these results, it should be noted that for the purposes of providing statistical measures for the entire population, the ATO database has some limits to its coverage. Persons who receive an income below the tax-free threshold ($18,200 in 2013-14) are not necessarily required to lodge a tax return and this can include people who derive their income from government pensions and allowances. In addition, some Australian Government pension, benefit and allowance payments are exempt from income tax and therefore recipients are not required to include this income in their taxation returns. Consequently, the coverage of all low income earners is incomplete and Government pensions and allowances are excluded from the data presented in this publication. Sources and methods for including more complete Government pensions and allowances information from other administrative DSS datasets are being considered for future iterations of this project.

Changes in income from previous years (2009-10 to 2012-13) are presented in 'real terms' i.e. in 2013-14 dollars, adjusted using changes in the Consumer Price Index (CPI).

It is also important to note that most references to the migrant population in this publication refer to migrant taxpayers, not the entire population of permanent migrants in Australia. Tables and graphs include data for only those migrants who had submitted a tax return.

Data on the personal income of migrants from the PITMID are unique and differ from the ATO statistics produced for the total Australian taxpayer population as well as the aggregate Personal Income Tax (PIT) statistics presented in Wage and Salary Earner Statistics for Small Areas (cat. no. 5673.0.55.003) and the Estimates of Personal Income for Small Areas (cat. no. 6524.0.55.002) (see Explanatory Notes).

When presenting statistics on income created from unit record data such as the 2013-14 PITMID, the ABS uses medians which measure the midpoint of the data (as income data is usually skewed). In some cases, median income for the Australian taxpayer data is not available for comparison.

This release is also accompanied by a Glossary, Explanatory Notes and detailed Data Item List.

Overview of migrant taxpayers, 2013-14

Permanent migrants who have arrived since 2000

According to the Department of Immigration and Border Protection (DIBP) migration statistics, 2.2 million permanent visas were granted to migrants between 1 July 2000 and 30 June 2014 (DIBP, 2015). Although levels fluctuated from year to year throughout this period, migrants who entered Australia were predominantly from the Skill stream, representing almost two thirds of permanent migrants (60%). A further 31% were Family migrants and 9% were Humanitarian migrants.

  1. Includes Visa stream "Special eligibility".

Source(s): Historical Migration Statistics, Department of Immigration and Border Protection (DIBP), 2015

Permanent migrant taxpayers

According to the 2013-14 Personal Income Tax and Migrants Integrated Dataset (PITMID):

  • Almost two-thirds of migrant taxpayers held a Skill stream visa (64%). A further 29% were Family stream migrants, 5% were Humanitarian migrants and less than 3% held a Provisional visa;
  • Migrant taxpayers reported $84 billion in total personal income in 2013-14, an increase of 7% on 2012-13. The majority share of this income was reported by Skill stream migrants (73%), followed by those in the Family stream (23%);
  • Most migrant taxpayers’ personal income was Employee income ($76 billion or 90%). This represented a 5.9% increase in real terms on this group's total Employee income in 2012-13; and
  • The number of migrant taxpayers in 2013-14 increased by 6.1% compared with migrant taxpayers in 2012-13.
     

Graph 2 shows that the proportion of migrant taxpayers by visa stream has remained fairly stable for the last five years.

  1. Includes Visa stream "Other permanent" and "Unknown".

Table 1 - Migrant taxpayers, total income by visa stream, 2012-13 and 2013-14 (a)

 2012-13    2013-14     
 Persons Total income Median incomePersons Total income Median incomeChange in Median income
 No%$ million%$No%$ million%$%
Skill868 38764.257 60373.352 306911 50063.561 00172.952 8921.1
Family388 68028.717 92122.836 441413 64128.819 16722.936 6180.5
Humanitarian64 0504.72 1882.829 61571 6275.02 4783.030 2772.2
Other permanent1 0160.1540.144 6451 0560.1550.142 494-4.8
Provisional31 2012.38601.123 86037 4402.69991.222 568-5.4
Total (b)1 353 334100.078 625100.044 9551 435 264100.083 701100.045 2000.5

a. In real terms, i.e. income amounts from 2012-13 to 2013-14 are in 2013-14 dollars, adjusted using changes in the Consumer Price Index (CPI).
b. Includes Visa stream "Unknown".

 

Median incomes of migrant taxpayers

  • The median Employee income of migrant taxpayers in 2013-14 was $48,400. This represented a 1.0% increase in real terms on median Employee income in 2012-13. The median Employee income of migrant taxpayers was higher than the median Employee income for all Australian taxpayers ($45,700).
  • Skill stream migrant taxpayers had the highest median Employee income at $55,400.
  • Humanitarian migrants and those who held a Provisional visa had the lowest median Employee incomes, with $34,000 and $22,800 respectively.
     
  1. In real terms, i.e. income amounts from 2011-12 to 2013-14 are in 2013-14 dollars, adjusted using changes in the Consumer Price Index (CPI).

In 2013-14, migrants with Other permanent visas recorded the highest median Business income ($16,000). Humanitarian migrants continued to have high median Business income in 2013-14 ($15,700) representing an increase of 12% on 2012-13.

  1. In real terms, i.e. income amounts from 2011-12 to 2013-14 are in 2013-14 dollars, adjusted using changes in the Consumer Price Index (CPI).

Permanent and temporary residency status and income

Almost 70% of all permanent migrant taxpayers indicated that they had held a Temporary visa prior to becoming a permanent resident.

In terms of the individual visa streams:

  • Almost all migrant taxpayers with a Provisional visa held a Temporary visa prior to a permanent visa;
  • Almost three-quarters of Skill stream migrants held a Temporary visa prior to a permanent visa;
  • Almost two-thirds of Family stream migrants held a Temporary visa prior to a permanent visa; and
  • One in six Humanitarian migrants held a Temporary visa prior to a permanent visa.
     
  1. Includes migrants who held a Provisional visa on arrival in Australia.

In terms of their median Employee income in 2013-14:

  • Family stream migrant taxpayers who previously held a Temporary visa experienced a positive effect on their median Employee income ($39,700 for those who had previously held a temporary visa compared with $35,900 for those who had not);
  • Skill stream migrant taxpayers who previously held a Temporary visa reported slightly higher median Employee income than those who were permanent residents on arrival ($53,500 compared with $52,600);
  • Prior residency status had little impact on the median Employee income of Humanitarian and Provisional migrants (differences of $200 or less); and
  • Only migrant taxpayers with an Other permanent visa who had previously held a Temporary visa reported a lower median Employee income than those who were permanent residents on arrival ($46,400 compared with $47,800).
     
  1. Includes migrants who held a Provisional visa on arrival in Australia.

Notes

References

Case study - Family migrants

The Family stream is one of the main components of Australia's Migration Programme, making up almost a third (30%) of all permanent residency visas granted under the Australian Government's Migration Programme and Humanitarian Programme in 2013-14 (DIBP, 2015). The Family stream allows Australian citizens, permanent residents or eligible New Zealand citizens to bring their partner, children, parents or other close family members to live in Australia (DIBP, 2017). In addition to the personal benefits of family reunification, there are wider benefits for Australia with family members contributing to the Australian population, society and economy.

How much personal income did family migrants generate in 2013-14?

Employee income

Business income

Investment income

Other income

Notes

References

Case study - Humanitarian migrants

Background - Humanitarian entrants in 2013-14

The Australian Government’s Humanitarian Programme is an important part of Australia's contribution to the protection of refugees and others in humanitarian need. The protection of refugees and people in humanitarian need is a major global challenge for the international community. The Office of the United Nations High Commission for Refugees (UNHCR) estimates that there were just over 51 million forcibly displaced people worldwide in 2013 and almost 60 million in 2014 (UNHCR, 2015)

Australia's Humanitarian Programme has two components: resettlement in Australia for people offshore who have been determined to be refugees or in humanitarian need, and protection for those people who are already onshore who successfully claim Australia’s protection under, for example, the Refugee Conventions (DIBP, 2014).

Each year the size and focus of the Humanitarian programme changes in response to evolving humanitarian situations. In 2013-14, a total of 13,768 Humanitarian visas were granted. Of these, 47% were Refugee visas, 33% were Special Humanitarian visas and 20% were under Protection visas and other visas granted onshore (DIBP, 2014).

  1. Includes "Special Assistance Category" and "Onshore".

Source(s): Historical migration statistics, Department of Immigration and Border Protection (DIBP), 2015


Humanitarian visas were granted to persons born in Asia (50%), the Middle East (35%) and Africa (15%). The top five countries of birth in 2013-14 for persons granted Humanitarian offshore visas were Afghanistan, Iraq, Myanmar, Syria and Bhutan. Almost half (46%) of offshore Humanitarian visas were granted to persons born in Afghanistan and Iraq (DIBP, 2014).

How much income did humanitarian migrants generate in 2013-14?

What are the main countries of birth of humanitarian migrant taxpayers?

How much employee income did humanitarian taxpayers earn?

What are the main occupations of humanitarian employees?

Humanitarian migrant business owners

Notes

References

Case Study - Migrants born in Sri Lanka

Almost 55,000 migrants arrived in Australia from Sri Lanka between 2000-01 and 2013-14. Numbers increased from 2,500 arrivals in 2000-01 to a peak of 5,700 in 2011-12, then dropped slightly to 4,500 in 2013-14 (DIBP, 2015). Of the 140,600 new permanent migrants who arrived in Australia in 2013-14, migrants from Sri Lanka accounted for 2% (ABS, 2017).

According to the 2013-14 PITMID, there were almost 35,000 permanent migrant taxpayers who were born in Sri Lanka, an increase of 6% from 2012-13. The majority held a Skill stream visa (72%), while 16% held a Family visa, almost 8% a Humanitarian visa and less than 4% a Provisional visa.


Sri Lanka was among the top ten source countries of birth for migrant taxpayers in terms of population size for three of the visa streams, ranking 7th for Skilled visas, 6th for Humanitarian visas and 9th for Provisional visas.

Skill stream migrant taxpayers born in Sri Lanka had the highest median Total income at $51,600 than Sri Lankan born migrants in other visa categories.

The proportion of Sri Lankan migrants with a Humanitarian visa who reported Employee income was 93%. This was on par with migrants born in Sri Lanka from the Skill stream (93%) and higher than all Humanitarian migrants (79%).

In 2013-14, more than 35% of Sri Lankan migrant taxpayers were male primary applicants aged 25 to 44 years of age. About 40% of female Sri Lankan migrants were secondary applicants, compared with only 20% of males.

In 2013-14, Sri Lankan taxpayers received $1.9 billion in Total income with most of this income ($1.8 billion) attributed to Employee income. They reported a further $105 million in Business income, $12 million in Investment income and just over $6 million in Other income.

Of migrant taxpayers who were born in Sri Lanka:

  • Skill stream migrants earned the most Employee income ($1.4 billion) and recorded a median Employee income of $53,200;
  • Humanitarian migrants had higher median Total income than their Family stream counterparts ($42,000 compared with $39,100), primarily due to higher median Employee income; and
  • The median Employee income of Humanitarian taxpayers ($43,200) was higher than both Family and Provisional stream migrants ($42,400 and $26,700 respectively).
     

Humanitarian migrant taxpayers born in Sri Lanka had the highest median Employee income ($43,200) compared with the remaining top ten most common countries of birth (see Graph 21).

  1. Excludes Special Administrative Regions (SARs) and Taiwan.

High and low income earners

Occupation of main job

Notes

References

Data downloads

Personal income of migrants, Australia, 2013-14

01/09/17 - Table 9 in the data cube has been revised with new decile ranges and data.

Data item list

History of changes

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