Australia

Title: Household Expenditure Survey

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from AUSTRALIAN BUREAU OF STATISTICS of LOCKED BAG 10 Belconnen ACT 2616, phone: (02) 6252 6171, fax: (02) 6252 1181, e-mail: jan.gatenby@abs.gov.au.
Data have been collected by household survey since 1974.

2. Purpose and coverage

The following purposes are considered to be very important or of some importance:

• to obtain weights for consumer price index
• to estimate household expenditure for national accounts
• to study the general structure of household incomes/expenditures
• to study income/expenditure patterns of disadvantaged groups, including pensioner households, single parent households, etc
• to study income/expenditure disparities among socio-economic groups
• to study consumer behaviour among socio-economic groups
• for general poverty and/or income distribution studies
• to study effects on income and expenditure of policy changes, especially tax changes
• for market research purposes

Geographic coverage: National with the following geographic areas excluded: remote or inaccessible areas¹ .

Population coverage:¹
The following types of household are included in the data collection:

• one person private households
• private households with more than one person
• households of other foreigners in the country
• armed forces residing in private housing outside military base

The following types of household are excluded in the data collection:

• those in collective housing (such as long term hospitals, prisons, monasteries, military quarters)
• non-resident households of nationals (households of nationals located abroad)
• diplomatic households in the country
• households of other foreigners in the country
• armed forces residing in private housing within military base

Units:
Dwelling units are used in the sample selection and are characterised by:

• single structure - detached housing unit
• single unit in a structure containing more than one housing unit

Data are recorded for the household unit which is characterised by:

• one person units
• two or more people living together:
  • sharing meals

Unit members: Usual residents are always included as unit members. Visitors (not usual residents) temporarily living in the dwelling are not included as unit members. Domestic staff living in same dwelling/compound are included in the unit. Renters living in same dwelling/compound are not included in the unit. Boarders living in same dwelling/compound are included in the unit.

Head of unit: ²
The concept of reference person is used in this survey and is characterised by:

• main income earner

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 01/98 to 06/99. These data are collected in the period from 01/98 to 06/99. This survey is conducted 5-yearly. The statistics are published 5-yearly.

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are block, none and dwelling respectively.

Stratification:
Areas/districts were stratified using the following criteria:

• geographical regions
• rural/urban

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the list of Census blocks and a separate listing exercise respectively. Primary Sampling Units (PSU) were selected using systematic sampling (sorted geographically) and Ultimate Sampling Units (USU) were selected using systematic sampling(sorted geographically). The sample size was 8908 households or other units. The overall response rate for the survey was 77 percent.

Enumeration procedure: Enumeration uses a single round survey design in which each reporting unit is enumerated only once. The sample is not divided into representative sub-samples. No action is taken to select a smaller set of reporting units for more detailed questioning.

DATA COLLECTION, CONCEPTS, DEFINITIONS AND CLASSIFICATIONS

5. Income data

Income data are collected. Receipts have to be regular and recurring to be considered as income. Income excludes receipts resulting from the sale or reduction of assets and/or from incurring liabilities. Exceptions are income from allocated pensions. Income includes receipts that are not currently available to the unit. Exceptions are employer contributions to supernnmation.

The following receipts are collected separately:

• employee income in-kind provided free or subsidized: housing , excluded due to measurement problems
• employee income in-kind provided free or subsidized: meals
• employee income in-kind provided free or subsidized: car/transportation , excluded due to measurement problems
• employee income in-kind provided free or subsidized: goods or services produced by employer
• employee income in-kind provided free or subsidized: other goods or services (staff discounts etc.)
• profit/loss from unincorporated enterprises (mixed income)
• stock consumed from unincorporated enterprise
• interest received
• dividends
• royalties
• old age benefits
• other pensions
• family-related allowances
• sickness benefits
• invalidity benefits
• survivors benefits

The following receipts are collected but not separately:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• rentals (payment received for produced assets e.g. house) , net of expenses
• rents (payment received for un-produced assets e.g. land)
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• unemployment benefits
• education-related allowances
• housing allowances
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts

The following receipts are not collected:

• termination and redundancy payments , excluded for other reasons: not regular and recurring
• drawing for own use from unincorporated enterprises , excluded for other reasons
• goods produced for own consumption , excluded due to measurement problems
• services produced for own consumption , excluded due to measurement problems
• goods produced for barter , excluded due to measurement problems
• services produced for barter , excluded due to measurement problems
• services from owner-occupied dwellings , excluded due to measurement problems
• services from other consumer durables (net) , excluded due to measurement problems
• free government dwelling , excluded due to measurement problems
• subsidized government dwelling , excluded due to measurement problems
• food subsidies , excluded due to measurement problems
• medical reimbursements , excluded due to measurement problems
• regular support received from non-profit institutions serving households: goods and services , excluded due to measurement problems
• regular support received from non-profit institutions serving households: free dwelling , excluded due to measurement problems
• regular support received from non-profit institutions serving households: subsidized dwelling , excluded due to measurement problems
• regular inter-household transfers received from: regular in-kind gifts , excluded due to measurement problems
• regular inter-household transfers received from: free dwelling , excluded due to measurement problems
• regular inter-household transfers received from: subsidized dwelling , excluded due to measurement problems
• regular inter-household transfers received from: regular free services , excluded due to measurement problems
• social transfers in kind: medical services , excluded due to measurement problems
• social transfers in kind: public education , excluded due to measurement problems
• social transfers in kind: transport subsidies , excluded due to measurement problems
• social transfers in kind: cultural and recreational services , excluded due to measurement problems
• social transfers in kind: others , excluded due to measurement problems

The following receipts are classified as income from paid employment:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• employee income in-kind provided free or subsidized: meals
• employee income in-kind provided free or subsidized: goods or services produced by employer
• employee income in-kind provided free or subsidized: other goods or services (staff discounts etc.)

The following receipts are classified as income from self-employment:

• profit/loss from unincorporated enterprises (mixed income)
• stock consumed from unincorporated enterprise

The following receipts are classified as property income:

• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , net of expenses
• rents (payment received for un-produced assets e.g. land)
• royalties

The following receipts are classified as transfer income but not employment-related:

• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts

The following receipts are excluded due to measurement problems:

• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: car/transportation
• goods produced for own consumption
• services produced for own consumption
• goods produced for barter
• services produced for barter
• services from owner-occupied dwellings
• services from other consumer durables (net)
• free government dwelling
• subsidized government dwelling
• food subsidies
• medical reimbursements
• regular support received from non-profit institutions serving households: goods and services
• regular support received from non-profit institutions serving households: free dwelling
• regular support received from non-profit institutions serving households: subsidized dwelling
• regular inter-household transfers received from: regular in-kind gifts
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling
• regular inter-household transfers received from: regular free services
• social transfers in kind: medical services
• social transfers in kind: public education
• social transfers in kind: transport subsidies
• social transfers in kind: cultural and recreational services
• social transfers in kind: others

The following receipts are excluded for other reasons:

• termination and redundancy payments
• drawing for own use from unincorporated enterprises

The following receipts are collected using the last 3 months as the reference period:

• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: car/transportation

The following receipts are collected using the 'last payment' and 'period covered':

• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts

The reference period for:

• wages and salaries was "usual receipts" and "period covered".
• cash bonuses and gratuities was "usual receipts" and "period covered".
• commissions and tips was "usual receipts" and "period covered".
• remuneration for time not worked, e.g. leave pay
• employee income in-kind provided free or subsidized: meals was collected in diary
• employee income in-kind provided free or subsidized: goods or services produced by employer was collected in diary
• employee income in-kind provided free or subsidized: other goods or services (staff discounts etc. was collected in diary
• profit/loss from unincorporated enterprises (mixed income) was last financial year (July-June)
• stock consumed from unincorporated enterprise was collected in diary
• interest received was last financial year (July-June)
• dividends was last financial year (July-June)
• rentals (payment received for produced assets e.g. house) , net of expense was last financial year (July-June)
• rents (payment received for un-produced assets e.g. land) was last financial year (July-June)
• royalties was last financial year (July-June)

Income data were collected separately for each person receiving income. Components of income for an individual were collected directly from the individual. Negative values (business losses) were included when computing self-employment income.

6. Expenditure data

Data collection method:
Diaries are used to collect expenditure data and are maintained for two weeks.

Diaries are used to collect expenditure on the following items:³

• food
• alcohol, tobacco
• other household non-durables (such as newspapers, batteries)
• clothing, footwear
• other personal non-durables (such as perfumes)
• household services (such as plumber)
• personal services (such as driving lessons, haircuts)

Interviews are used to collect expenditure data with the respondent completing the interview by a mix of recall and using documentation.

Data for the following expenditure items are collected by referring:

• to expenditures in last one month:
  • food
  • other household non-durable goods
  • clothing, footwear
  • other personal non-durable goods
  • personal services

• to expenditures in last 3 months:
  • housing
  • other durable goods
  • households services

The following types of expenditure items are classified as 'Household consumption expenditure':

• non-durable goods purchased
• durable goods purchased (except housing)
• purchase price of owner-occupied housing
• income in-kind receipts of goods
• income in-kind receipts of services
• interest payments (excluding mortgage interest payments)
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , net of winnings
• out of pocket health expenditure , net of claims
• out of pocket education expenditures , net of refunds
• out of pocket transport expenditures , net of refunds
• housing maintenance, minor repairs
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables : jewellery, paintings (but values adjusted if an extreme outlier)
• occupational expenditures
• other business-related expenditures

The following types of expenditure items are classified as 'Non-consumption household expenditure':

• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied housing
• life insurance premiums , gross of claims
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)

The following types of expenditure items are excluded due to measurement problems:

• services of owner-occupied housing
• own produced non-durable goods
• own-produced durable goods
• own-produced services
• services from durables owned (except housing)
• in-kind goods received from other households
• in-kind services received from other households
• social transfers in-kind of goods and services from government and non-profit institutions serving households

The following types of expenditure items are excluded for other reasons:

• investment-related expenditures (e.g. purchase of shares/stocks)

The following types of expenditure items are collected on an 'acquisitions' basis:

• non-durable goods purchased
• durable goods purchased (except housing)
• purchase price of owner-occupied housing
• income in-kind receipts of goods
• income in-kind receipts of services
• gambling expenditure , net of winnings
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables : jewellery, paintings (but values adjusted if an extreme outlier)
• occupational expenditures
• other business-related expenditures

The following types of expenditure items are collected on a 'payments' basis:

• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied housing
• interest payments (excluding mortgage interest payments)
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• life insurance premiums , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• out of pocket health expenditure , net of claims
• out of pocket education expenditures , net of refunds
• out of pocket transport expenditures , net of refunds
• housing maintenance, minor repairs

Classification: A national classification that is not consistent with COICOP is used for classifying expenditure and has 609 separate categories at the finest level.

7. Other Data Collection Issues

The following other topics are covered:

• demographic characteristics
• education attainment of members
• employment status of members
• occupation of members
• housing characteristics
• indebtedness

Households are not requested to indicate whether durable goods are new or second-hand when their acquisition is recorded.

Non-response: There is no substitution for non-response, whether by non-contact or by refusal.

Reporting errors are reduced using the following measures:⁴

• careful instrument design
• adequate cues or props for prompting
• quality control

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are pre-coded on data collection forms to the extent possible.

The responses are edited by the following:

• interviewers, data collectors
• office staff

Extreme values are amended. In-kind receipts are included in the estimates, but consumption of own production is not. In-kind receipts are valued using: the respondent's estimate.

Treatment of owner-occupied housing: Values of owner-occupied housing are not included in the total income/expenditure estimates.

Treatment of selected groups/values in analysis: Some households/units are excluded from analysis because of incomplete response. Missing values are imputed always . Supplementary sources are not used to adjust estimates for under- or over-reporting. No groups are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:

• sampling
• non-response
• bench-marking

Sampling errors: Sampling errors are computed for all aggregates and these sampling errors are published.

Tabulation and Analysis: Statistics are presented showing averages per week and statistics are analysed and tabulated for households only.

The following classifications are used for tabulation and analysis of income statistics:

• age of reference person or head of household
• occupation of reference person or head of household
• income percentiles, generally quintiles
• principal source of household income
• household size
• structure of household
• other classification, state, broad geographic area, tenure

The following classifications are used for tabulation and analysis of expenditure statistics:

• age of reference person or head of household
• occupation of reference person or head of household
• income percentiles, generally quintiles
• principal source of household income
• household size
• structure of household
• other classification, state, broad geographic area, tenure

Documentation and Dissemination:
Published survey reports: hES: Summary of Results 1998-99; HES: Detailed Expenditure items 1998-99 (Cat. No. 6535.0), 06/00; 09/00
Published methodological information: hES: User Guide 1998-99 (Cat. No. 6521.0), 09/00

Separate tables are not published for any special population groups.