Australia

Title: Survey of Income and Housing costs

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from AUSTRALIAN BUREAU OF STATISTICS of Lociled bag 10 Belconnen ACT 2616, phone: (02) 6252 6174, fax: (02) 6252 7784, e-mail: jan.gatenby@abs-gov.au.
Data have been collected by household survey since 1994.

2. Purpose and coverage

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

• to study the general structure of household incomes/expenditures
• to study income/expenditure patterns of disadvantaged groups, including pensioner households, single parent households, etc
• for general poverty and/or income distribution studies
• to study effects on income and expenditure of policy changes, especially tax changes

Lesser importance is attached to:

• for market research purposes

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

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

• one person private households
• private households with more than one person

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
• armed forces residing in private housing outside 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

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

• two or more people:
  • living in the same household
  • pooling their income to some extent
• income sharing is assumed to talce place within married (registered or de facto) couples and between

Unit members: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 6 weeks. 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:
The concept of reference person is used in this survey and is characterised by:

• recognized owner, or responsible for tenancy of dwelling
• main income earner

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 07/99 to 06/00. These data are collected in the period from 07/99 to 06/00. This survey is conducted continuously. The statistics are published annually.

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 15500 households or other units. The overall response rate for the survey was 85 percent. Errors/biases were minimized by using an updated sampling frame.

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.

The survey of income and housing costs (SIHC) is conducted as a supplement to the monthly population survey dwellings are included in the MPS for eight consecutive months. In any particular month the sample selected for SIHC is one sixth of the last r otation group within the MPS sample..

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. Income includes receipts that are not currently available to the unit.

The following receipts are collected separately:

• profit/loss from unincorporated enterprises (mixed income)
• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• rents (payment received for un-produced assets e.g. land)
• 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
• 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 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.
• employee income in-kind provided free or subsidized: housing , excluded due to measurement problems
• employee income in-kind provided free or subsidized: meals , excluded due to measurement problems
• 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 , excluded due to measurement problems
• employee income in-kind provided free or subsidized: other goods or services , excluded due to measurement problems
• 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
• stock consumed from unincorporated enterprise , 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: cash, e.g. scholarships
• 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

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

• profit/loss from unincorporated enterprises (mixed income)

The following receipts are classified as property income:

• interest received
• dividends
• rentals (payment received for produced assets e.g. house)
• 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: meals
• employee income in-kind provided free or subsidized: car/transportation
• 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
• goods produced for own consumption
• services produced for own consumption
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• 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 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

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
• profit/loss from unincorporated enterprises (mixed income) was last financial year (July-June)
• interest received was last financial year (July-June)
• dividends was last financial year (July-June)
• rentals (payment received for produced assets e.g. house) 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)
• regular support received from non-profit institutions serving households: cash, e.g. scholarships was "usual receipts" and "period covered".
• regular inter-household transfers received from: family, e.g. alimony, child/parental support was "usual receipts" and "period covered".
• regular inter-household transfers received from: regular inheritances or trusts was "usual receipts" and "period covered".
• regular inter-household transfers received from: regular cash gifts was "usual receipts" and "period covered".

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 not used to collect expenditure data.

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 the last payment for that expenditure:
  • housing

Data for the following expenditure items are not collected:

• food
• other household non-durable goods
• clothing, footwear
• other personal non-durable goods
• other durable goods
• households services
• personal services

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

• mortgage repayments, including interest

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

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

Reporting errors are reduced using the following measures:¹

• bounding interview
• adequate cues or props for prompting

DATA PROCESSING, ANALYSIS AND DISSEMINATION

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

Extreme values are amended. Neither in-kind receipts nor consumption of own production is included in the estimates.

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 only on some occasions .² 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 major 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, quintiles
• absolute income groups
• principal source of household income
• household size
• structure of household
• other characteristic of household, tenure, state, capital city, balance of state labour force status

Documentation and Dissemination:
Published survey reports: Income Distribution 1999/2000 (Cat. no. 6553-0), Feb. 2001
Published methodological information: SIHC User Guide (Cat. no. 6553-0), Oct. 1997

Additional statistics (or special tables on request) are available for public use, with charges. Separate tables are published for households with wages/salaries as main source of income. Files of unidentifiable unit data are available (or available on request) for public use, with charges.