1286.0 - Family, Household and Income Unit Variables, 2005  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 01/06/2005   
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Contents >> Income unit composition >> Classification and coding

THE CLASSIFICATION CRITERIA

21. Income units are classified according to the following criteria:

  • whether they comprise one person or more than one person;
  • among those comprising more than one person, whether a couple relationship exists between two of them; and
  • among those where a couple relationship exists, whether there are any dependent children present.

22. Note that one-parent income units always include dependent children. In a one parent family with non-dependent children only, each individual comprises a separate one-person income unit.


THE STANDARD CLASSIFICATION AND CODE STRUCTURE

23. The standard classification of 'Income unit composition' is:

1 Couple only
2 Couple with dependent children
3 One parent
4 One person

Residual categories and codes

24. All income units are codable to one of the substantive categories of the classification from 'Relationship in household' data so there is no requirement for residual categories and codes.

Supplementary codes

25. A supplementary code of '0 Inadequately described' is provided for those cases where 'Relationship in household' data are insufficient to identify and classify the component Income units.

Definitions of the categories

26. The categories of the classification are defined as follows:

Couple only income unit: an income unit comprising two partners in a couple relationship.

Couple with dependent children income unit: an income unit comprising two partners in a couple relationship and all of their dependent children.

One parent income unit: an income unit comprising a lone parent and all of his or her dependent children.

One person income unit: an income unit comprising a person who is not party to either a couple or parent/dependent child relationship. Specifically this includes all persons identified by the 'Relationship in household' variable as non-dependent child, other related individual or non-family member.


SCOPE OF THE CLASSIFICATION

27. The classification applies to all income units.


CODING PROCEDURES

28. 'Income unit composition' is coded from data obtained from 'Relationship in household'. The procedures for allocation of individuals to income units follow the same rules and procedures as the rules for identifying families explained in detail in the ABS Standard Variable 'Family composition', with the exception that persons not in couple income units or one parent income units are not allocated to any form of 'Other family' income unit. Such persons form one person income units. The procedures are as follows:

29. Where a couple relationship is identified, the couple will form the nucleus of an Income unit. If 'Relationship in household' data reveal the presence of one or more natural, adopted, step, or foster dependent children of that couple, the couple and the dependent children will be coded as a Couple with dependent children income unit. A couple without dependent children will be coded as a Couple only income unit.

30. Once any couple relationships have been identified in the household, if there is a lone parent with one or more natural, adopted, step, or foster dependent children, that parent and the children will be coded as a One parent income unit.

31. Any person in a household aged 15 or over who is not allocated to an income unit using these procedures will be coded as a One person income unit. Specifically, Non-dependent children of any age, Lone parents without dependent children, Other related individuals and Non-family persons in Family households; and all persons in Group households and Lone person households comprise One-person Income units.

32. Any Child under 15, who is not the natural, adopted, step or foster child of anyone in the household, is allocated to an income unit as a 'nominal child'. The ABS uses the concepts of the 'nominal child' and 'nominal parent' where to all intents and purposes a 'parent-child' relationship exists, to facilitate a more accurate and analytically useful picture of the arrangements that may exist in the household. Children under 15 who are not the natural, adopted, step or foster child of anyone in the household are allocated to an income unit in the same way as a 'nominal child' is allocated to a 'nominal parent' in family coding. See the ABS Standard Variable 'Family composition' for more detail. The rules for allocating a nominal child are applied in the following order:
  • Sibling aged 25 or more. The nominal child's eldest sibling who is over the age of 25 is assigned as the nominal parent.
  • Closest other relative. The nominal child's closest non-sibling relative aged 25 or more is assigned as the nominal parent. If necessary relationships by lineage (vertical) take precedence over other types of relationships. For example, grandmother over aunt, or aunt over cousin.
  • Couple relationship. Persons in a couple relationship are assigned as the nominal parents of the nominal child.
  • Child to female parent. The nominal child is assigned a female nominal parent in preference to a male nominal parent. For example, aunt over uncle.
  • Eldest person rule. The nominal child is assigned the eldest person usually resident in the dwelling as their nominal parent.

33. Where an unattached Child under 15 is allocated to an income unit in accordance with the procedures detailed above, the child is treated in the same way as a natural, adopted, step or foster child. The income unit composition of the nominal parent's income unit is then established in accordance with the procedures set out above. This may result in a Couple only income unit becoming a Couple with dependent children income unit or a One person income unit becoming a One parent income unit.

34. In summary:
  • Couple relationships are identified first. Each identified couple, along with their own dependent children, comprises a separate Couple only or Couple with dependent children income unit.
  • Any lone parents and their own dependent children form separate One parent income units.
  • Any other person aged 15 or over forms a separate One person income unit.
  • Children under 15 who are not the children of any couple or lone parent in the household are attached to an income unit as prescribed above.




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