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ECONOMIC SECURITY GLOSSARY
Cash earnings Remuneration paid to employees on a regular and frequent basis (quarterly or more frequently) for time worked or work done and for time not worked, such as recreation and other types of leave. Cash earnings (inclusive of amounts salary sacrificed) are gross amounts, that is, before tax and other items (e.g. superannuation) are deducted. See Employee - Cash earnings. Cash flow problems When financial activities of the household are constrained by shortage of money. The specific financial activities could be: went without meals; could not afford to heat home; could not pay electricity, gas or telephone bills on time etc. Child A person of any age who is a natural, adopted, step, or foster son or daughter of a couple or lone parent, usually resident in the same household. A child is also any individual under 15 years of age, usually resident in the household, who forms a parent-child relationship with another member in the household. This includes otherwise related children and unrelated children under 15 years of age. In these cases in order to be classified as a child, the person can have no child or partner of their own usually resident in the household. Commonwealth Rent Assistance Commonwealth Rent Assistance (CRA) is a non-taxable income supplement paid through Centrelink to individuals and families who rent in the private rental market. It is only paid to recipients of another government benefit or pension, and is paid in conjunction with that other benefit. Consumer Price Index (CPI) A general measure of price inflation for the household sector in Australia. Specifically, it provides a measure of changes, over time, in the cost of a constant basket of goods and services acquired by the capital city households in Australia. Contributing family worker A person who works without pay, in an economic enterprise operated by a relative. Dependent children All persons aged under 15 years; and people aged 15–24 years who are full-time students, have a parent in the household and do not have a partner or child of their own in the household. Employed persons Employed persons include all persons aged 15 years and over who, during the reference week:
Employed full-time Persons employed full-time are those employed persons who usually worked 35 hours or more a week (in all jobs) and those who, although usually working less than 35 hours a week, worked 35 hours or more during the reference week. Employed part-time Persons employed part-time are those employed persons who usually worked less than 35 hours a week (in all jobs) and either did so during the reference week, or were not at work in the reference week. Employees As of August 2014, the Characteristics of Employment (CoE) Survey defines employees as persons who:
Prior to August 2014, the Forms of Employment (FoE) Survey defined employees as people who work for a public or private employer and receive remuneration in wages or salary. Employees are engaged under a contract of service (an employment contract) and take directions from their employer/supervisor/manager/foreman on how the work is performed. In the Labour Force Survey and other household surveys (including FOES prior to 2008), employees are defined as persons who:
The Employee Earnings and Hours survey (EEH) defines employees as persons who worked for a private or public employer and received pay for the reference period in the form of wages or salaries, a commission while also receiving a retainer, tips, piece-rates or payment in kind. Persons who operated their own incorporated business with or without hiring employees are also included as employees. Employees with paid leave entitlements Employees who are entitled to either paid sick leave or paid holiday leave (or both). See Employees. Employees without paid leave entitlements Employees who are not entitled to either paid sick leave or paid holiday leave, or did not know whether they were entitled to paid holiday leave or sick leave. See Employees. Employment to population ratio For any group, the number of employed persons expressed as a percentage of the civilian population in the same group. Equivalised disposable household income Disposable household income (income after taxes are deducted) adjusted using an equivalence scale. It takes into account the greater income needs of larger households and the economies of scale achieved when people live together. For a lone person household it is equal to disposable household income. For a household comprising more than one person, it indicates the disposable household income that would need to be received by a lone person household to enjoy the same level of economic well-being as the household comprising more than one person. Equivalised household net worth Household net worth adjusted using an equivalence scale (using the same approach as equivalised disposable household income but using household net worth instead of disposable household income). Family Two or more people, one of whom is at least 15 years of age, who are related by blood, marriage (registered or de facto), adoption, step or fostering; and who are usually resident in the same household. The basis of a family is formed by identifying the presence of a couple relationship, lone parent-child relationship or other blood relationship. Some households will, therefore, contain more than one family. Family composition of household Classifies households into three broad groupings based on the number of families present (one family, multiple family and non-family). One family households are further disaggregated according to the type of family (such as couple family or one parent family) and according to whether or not dependent children are present. Non-family households are disaggregated into lone person households and group households. Full-time employed See Employed full-time. Government pension/ allowance Income support payments from government to people under social security and related government programs. Included are pensions and allowances received by aged, disabled, unemployed and sick people, families and children, veterans and their survivors, and study allowances for students. Payments made by overseas governments to Australian residents as well as the Australian government are included. Homelessness In brief, under the ABS statistical definition of homelessness, when a person does not have accommodation alternatives they are considered homeless if their current living arrangement:
The definition is described in more detail in the Information Paper - A Statistical Definition of Homelessness, 2012 (cat no. 4922.0). The General Social Survey (GSS) provides information on people who have been homeless in the past but who are now usual residents of private dwellings. As the GSS only enumerates usual residents of private dwellings, it will not include: people currently living in shelters; people sleeping rough; people 'couch surfing' (staying temporarily with other households); nor people staying in boarding houses. For further information see General Social Survey: Summary Results, Australia, 2014 (cat no. 4159.0). Household A person living alone or a group of related or unrelated people who usually live in the same dwelling. Household net worth The value of a household's assets less the value of its liabilities. Net worth may be negative when household liabilities exceed household assets. Imputed rent Imputed rent is an estimate of the value of the housing services that a household receives from home ownership or by households paying subsidised rent or by occupying their dwelling rent free. Imputed rent reflects the amount of rent the property would attract if commercially rented. For further information see Glossary in Household Income and Wealth, 2015-16 (cat no. 6523.0). Income Any accruing cash receipts that are of a regular and recurring nature including money received from:
Gross income is the sum of income from all these sources before income tax or the Medicare levy are deducted. Independent contractors Independent contractors are people who operate their own business and who contract to perform services for others without having the legal status of an employee, i.e. persons who are engaged by a client, rather than an employer. Independent contractors are engaged under a contract for services (a commercial contract), whereas employees are engaged under a contract of service (an employment contract). Independent contractors' employment may take a variety of forms, for example, they may have a direct relationship with a client or work through an intermediary. Independent contractors may have employees, however they spend most of their time directly engaged with clients or on client tasks, rather than managing their staff. Industry An industry is a group of businesses or organisations that undertake similar economic activities to produce goods and services. In this domain: Economic Security, industry is classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (Revision 2.0) (cat no. 1292.0). Labour force The labour force is the labour supply available for the production of economic goods and services in a given period, and is the most widely used measure of the economically active population. Persons in the labour force are classified as either employed or unemployed according to their activities during the reference week by using a specific set of priority rules. Labour force participation rate The labour force participation rate for any group within the population is the labour force component of that group, expressed as a percentage of the population in that group. Until recently, ABS policy has been to revise benchmarks for labour force data on a five-yearly basis following final rebasing of population estimates to the latest Census of Population and Housing data. However, labour force population benchmarks are now updated more frequently when preliminary population estimates become available, and again when these preliminary estimates are subsequently revised. For this release of Gender Indicators, Australia, labour force estimates dating back to (and including) 2011-12 have been revised in accordance with this new benchmarking process. Future revisions to benchmarks will then take place every time a new year of labour force data becomes available for publishing in the Gender Indicators publication. Re-benchmarking historical data has not resulted in any material change to unemployment rates, participation rates or employment to population ratios. Labour force status Labour force status is a classification of the civilian population aged 15 years and over into the 'labour force' (those employed or unemployed) or into 'not in the labour force', as defined. The definitions conform closely to the international standard definitions adopted by the International Conferences of Labour Statisticians. Lone parent A person who has no spouse or partner present in the household but who forms a parent-child relationship with at least one dependent or non-dependent child usually resident in the household. Lone person A person who makes provision for their food and other essentials for living, without combining with any other person to form part of a multi-person household. They may live in a dwelling on their own or share a dwelling with another individual or family. Low economic resource household A household in the lowest two quintiles of both equivalised adjusted disposable household income (adjusted to include imputed rent) and equivalised household net worth. Low income household A household in the lowest quintile of equivalised household disposable income (adjusted to include imputed rent). Low income household in rental stress Low income households in rental stress are defined as those containing the 40 per cent of households in the lowest two quintiles of equivalised disposable household income and whose rental costs exceed 30 per cent of its gross income (less any Commonwealth Rental Assistance received). Low wealth household A household in the lowest quintile of equivalised household net worth. Main source of income The source of income from which the most positive income is received. If total income is nil or negative the principal source is undefined. As there can be several possible sources, the main source may account for less than 50% of total income. Managerial employees Employees who have strategic responsibilities in the conduct or operations of the organisation and/or are in charge of a significant number of employees. These employees usually do not have an entitlement to paid overtime. Includes professionally qualified staff who primarily perform managerial tasks in conjunction with utilising their professional skills. Owner managers of incorporated enterprises are regarded as managerial employees. See Employees - Cash earnings. Median earnings The amount of earnings which divides employees into two groups containing equal numbers of employees, one half with earnings below the median and the other half with earnings above the median. Non-managerial employees Employees who are not managerial employees (as defined above) including non-managerial professionals and some employees with supervisory responsibilities. See Employee - Cash earnings. No superannuation coverage Gender indicator Table 26 presents data from the ABS Survey of Income and Housing, where persons having 'No superannuation coverage' was defined as follows: In 2003–04 and 2005–06, 'No superannuation coverage' included persons a) having a zero superannuation balance or no account at all; and b) not receiving a current weekly income from superannuation. From 2009–10 onward, 'No superannuation coverage' included persons having a zero superannuation balance or no account at all; and not receiving a current weekly income from superannuation; and not receiving personal irregular receipts from superannuation payments over the last 2 years. Not in the labour force Persons not in the labour force are those people who, during the reference week, were not in the categories 'employed' or 'unemployed'. They include people who were keeping house (unpaid), retired, voluntarily inactive, permanently unable to work, in jail, trainee teachers, members of contemplative religious orders, and persons whose only activity during the reference week was jury service or unpaid voluntary work for a charitable organisation. Occupation An occupation is a collection of jobs that are sufficiently similar in their title and tasks, skill level and skill specialisation which are grouped together for the purposes of classification. In this domain, occupation is classified according to the ANZSCO - Australian and New Zealand Standard Classification of Occupations, 2013, Version 1.2 (cat no. 1220.0). Ordinary time cash earnings Payments for award, standard or agreed hours of work, including allowances, penalty payments, payments by measured result and regular bonuses. Salary sacrifice amounts are included. Excluded are non-cash components of salary packages, overtime payments, and payments not related to the survey reference period, such as retrospective pay, pay in advance, leave loadings, and severance pay and termination and redundancy payments. Other business operators People who operate their own business, with or without employees, but who are not operating as independent contractors. Other business operators are distinguished from independent contractors in that they tend to generate their income from managing their staff or from selling goods or services to the public, rather than providing a labour service directly to a client. Other business operators spend little time working on client tasks with most of their time spent on managing their employees and/ or business. Other landlord type Where the household pays rent to the owner/ manager of a caravan park, an employer (including a government authority), a housing cooperative, a community or church group, or any other body not included elsewhere. Other tenure type A unit (i.e. household, income unit or person, where applicable) which is not an owner (with or without a mortgage) or a renter. Includes rent free, life tenure, rent/ buy and shared equity schemes. Overtime earnings Payment for hours worked in excess of award, standard or agreed hours of work. Own account workers People who operate their own unincorporated economic enterprise or are engaged independently in a profession or trade, and do not hire employees. Owner (of dwelling) Owners are divided into two categories: owners without a mortgage, and owners with a mortgage. If the person has any outstanding mortgage or loan secured against the dwelling, then the person is an owner with a mortgage. If there is no mortgage or loan secured against the dwelling, then the person is an owner without a mortgage. Owner managers of incorporated enterprises (OMIEs) People who work in their own incorporated enterprise, that is, a business entity which is registered as a separate legal entity to its members or owners (also known as a limited liability company). These people are classified as employees under 'status in employment'. Technically they are employees, however they are similar in characteristics to owner managers of unincorporated enterprises. Owner managers of unincorporated enterprises (OMUEs) People who operate their own unincorporated enterprise, that is, a business entity in which the owner and the business are legally inseparable, so that the owner is liable for any business debts that are incurred. Includes those engaged independently in a trade or profession. These people are classified as employers under 'status in employment' if their business has employees, or own account workers if they do not. Participation rate See Labour force participation rate. Participation rate in the Education domain refers to 'Education participation' rate. Part-time employed See Employed part-time. Part-time workers See Employed part-time. Preservation age A person's preservation age is the minimum age that a super fund member may be able to access their preserved benefits (and is not the same as the pension age). A benefit may be paid earlier if a super fund member has met a condition of release. The preservation age varies depending on when a person was born. The following table outlines preservation ages based on when a person was born:
Private renter A unit (i.e. household, income unit or person, where applicable) paying rent to a landlord who is a real estate agent, a parent or other relative not in the same household or another person not in the same household. Property All residential and non-residential properties owned by people in the household, excluding properties owned by the respondent's business. Public renter A household paying rent to a state or territory housing authority or trust. Quintiles Groupings that result from ranking all households or people in the population in ascending order according to some characteristic, such as their household income, and then dividing the population into five equal groups, each comprising 20% of the estimated population. Rate A number of series under the Economic Security domain are referred to as a 'rate'. In this context, a rate is simply a proportion (%) of a larger population, but expressed as a 'rate' for historical reasons. For example, the unemployment rate is simply the number of people who are unemployed, expressed as a proportion (%) of all people in the labour force. Rate ratios Female to male rate ratios are calculated by dividing a population of females, or a characteristic of females (eg. female earnings for a particular industry sector and year) by the male equivalent (eg. male earnings for the same industry and year). In this instance, a rate ratio of 1.0 indicates parity between female and male earnings, whereas a rate ratio greater than 1.0 indicates an earnings inequity in favour of females, and a rate ratio less than 1.0 indicates an earnings inequity in favour of males. Relationship in household The relationship of people who live in the same household. Rental stress For the purpose of this domain, a household is considered to be in rental stress if its rental costs exceed 30 per cent of its gross household income (less any Commonwealth Rental Assistance received). Renter A household that pays rent to reside in the dwelling. Retired from labour force People who had previously worked for two weeks or more, were not in the labour force and who did not intend to look for, or take up, paid work in the future. Salary sacrifice An arrangement under which an employee agrees contractually to forgo part of their remuneration, which the employee would otherwise receive as wages and salaries, in return for the employer or someone associated with the employer providing benefits of a similar value (Australian Taxation Office). Superannuation A long-term savings arrangement that operates primarily with a superannuation fund in order to support future retirement. Superannuation balance The total amount of superannuation a person has accrued in their superannuation fund(s) which are either in the accumulation or draw down phase. Superannuation pension or annuity A pension or annuity from a superannuation account or retirement saving account (RSA) and eligible for tax concessions. The payment must be made at least annually and must be within limits set by legislation. Tenure type The nature of a household's legal right to occupy the dwelling in which the household members usually reside. Tenure is determined according to whether residents of the household own the dwelling outright, own the dwelling but have a mortgage or loan secured against it, is paying rent to live in the dwelling or has some other arrangement to occupy the dwelling. Total cash earnings Total cash earnings of employees is equal to ordinary time earnings plus overtime earnings. Underemployed workers Underemployed workers are employed persons who want, and are available for, more hours of work than they currently have. They comprise:
Underemployment rate The number of underemployed workers expressed as a percentage of the labour force. Underutilisation rate This is the sum of the number of persons unemployed and the number of persons in underemployment, expressed as a proportion of the labour force. See Unemployed and Underemployed workers. Unemployed Persons aged 15 years and over who were not employed during the reference week, and:
Unemployment rate The number of unemployed persons expressed as a percentage of the labour force. Work Work is a physical or mental effort or activity directed toward the production or accomplishment of something. In this domain work refers to only economic activities conducted as part of paid employment. The concept of employment is based on the principle that a person must have been engaged in some economic activity (work) over a short reference period. These economic activities (work) are undertaken for remuneration or salary in the production of goods or services. The Education domain also uses this definition. The Work and Family Balance domain uses a broader definition of work and includes both paid and unpaid work. Paid work includes activities undertaken for remuneration or salary in the production of goods and services, and unpaid work is primarily household or community work undertaken without pay that could be replaced by market goods and services. Document Selection These documents will be presented in a new window.
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