INCOME (INCLUDING FAMILY AND HOUSEHOLD INCOME)
DIRECTIONS FOR 2011 CENSUS
This topic is being reviewed to examine the feasibility of collecting more precise income data through a write-in question. Investigations will consider the possible increase in respondent burden through this type of question, as well as any subsequent impact on data quality.
The ABS is also examining the inclusion of an income question for people who are temporarily absent from the dwelling. While collection of this data will enhance the derivation of family and household income, the practicality of its inclusion for absent people will need to be investigated.
In addition, the introduction of a question on main source of income is being considered.
JUSTIFICATION
Census data on income are important as an indicator of relative advantage and disadvantage and economic wellbeing for small areas and small population groups. While there is a tendency for incomes to be slightly understated in the Census, the distribution is largely consistent with that obtained from the ABS income and expenditure surveys.
Household income is used as the main indicator of economic wellbeing and is currently derived from individual incomes that are reported in ranges. The accuracy and usefulness of household income data will be significantly improved if the dollar value of income received by each person is able to be reliably collected.
Completeness of household income will be enhanced if the income of household members absent on Census night is also collected and included.
HISTORICAL INFORMATION
A question on income was first asked in the 1933 Census in an attempt to measure the effects of the Depression. It was re-introduced in 1976 and for all subsequent Censuses. Each person aged 15 years or older was asked to indicate the range within which their gross income from all sources lies. Statistics on personal, family and household income are produced from this question.
From the 1996 Census, categories for nil and negative income have been provided to overcome an apparent cause of non-response. To ensure that the ‘nil income’ category did not lead to biased results, the highest income categories were listed first. For the 2006 Census, the number of income response categories was reduced. Ranges were adjusted in line with rises in income since the 2001 Census and an additional range for higher incomes was added.
COMMENTS
Testing of the topic has shown that there is a general tendency for those not in the labour force to leave this question unanswered, as they consider income only applies to payments received as a result of employment. Similarly, pensioners and self-funded retirees sometimes state that they receive no income as they do not regard their pension as income.
Family and household income are derived from data on individual incomes of members of families and households. Only the income of people present on Census Night have been included for previous Censuses, because difficulty of collecting and processing information about people temporarily absent.
USER REQUIREMENTS
Data on income are required:
- For public and private sector planning activities, for small population groups and small geographic areas. In particular it helps identify the location of the economically disadvantaged for planning social services
- at the broad level, as an indicator of economic wellbeing. It is usually cross-classified with other Census variables.
For many purposes, household income is the preferred data item.
AVAILABILITY OF NON-CENSUS DATA
Data on income are available from surveys of household income and expenditure conducted regularly by the ABS. These include the Survey of Income and Housing 2005-06 (results released in Household Income and Income Distribution, Australia, 2005-06, cat. no. 6523.0).
A question on income is asked in most household surveys for use as a classificatory variable. Household income is available from most surveys. However, surveys are not able to produce reliable data for small area levels or small population groups.
2006 CENSUS QUESTION
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