• Summary
• Downloads
• Explanatory Notes
• Related Information
• Past Releases

Economic resources

When examining the economic wellbeing and resources of a household it is important to consider levels of both income and net worth (wealth), both of which support a households' ability to meet ongoing consumption and expenditure. The following section considers energy costs in relation to both low income and low wealth households.

Energy expenditure and consumption

Energy expenses are a significant and recurrent component of total living costs. In 2012, average weekly expenditure on energy for dwellings and vehicles increased in relation to household income and wealth. Low income households spent $77 per week on energy, significantly less than middle and high income households (who spent $111 and $116 per week, respectively). (Endnote 1)

Dwelling characteristics are useful to assist in understanding energy costs and consumption. In 2012, there was little difference between low, middle or high income households in the type of dwelling they occupied and their extent of energy efficiency characteristics (insulation, window treatments and solar electricity or hot water). However, low income households were more likely to live in dwellings with fewer bedrooms (2.9 bedrooms on average) than higher income households (3.2 bedrooms for both middle and high income groups), which may contribute to lower energy costs.

Low wealth households were more likely to occupy dwellings which were not separate houses, such as townhouses, flats, units or apartments, which in general have significantly lower average energy costs. These households were more likely to occupy dwellings with fewer bedrooms (2.6 on average) than other households (3.1 and 3.5 for middle and high wealth households respectively). Energy efficient characteristics were less prevalent among these households with significantly fewer dwellings having insulation, window treatments or solar electricity or hot water installed compared to other households.

In general, energy costs increase with the addition of energy sources used in a dwelling (e.g. mains gas, LPG/ bottled gas). One third (34%) of low income and nearly half of low wealth households (46%) used just electricity in their dwelling. By comparison, fewer high income (25%) and high wealth households (22%) used electricity on its own. The most common energy sources used among high income and wealth households, were electricity and mains gas with no other energy sources present (53% and 49%, respectively), whereas 42% of both low income and low wealth households used these sources.

Households may choose to perform actions or adjust their behaviour in order to reduce energy costs. They may also have different perceptions on the types of activities that contribute most to their dwelling energy costs. Note that responses are somewhat subjective, as the person answering the questions may not be aware of all behaviours of others in the household, and perception questions are subjective in nature.

Among low income households:

• Two thirds (66%) switched appliances off at the wall when not in use to reduce energy costs, more so than middle and high income households (61% and 52% respectively).
• 63% took shorter showers to reduce energy costs, more so than middle and high income households (58% and 51% respectively).
• One third (34%) used draft proof seals on doors and windows, more so than middle and high income households (30% and 29% respectively).
• Half of low income households (51%) used electric hot water systems (compared to 40% of high income households).
• Fewer households reported heating (25%) and cooling (10%) their home as the main contributors to household energy costs (compared to 30% and 16% of high income households)
• A quarter of households (26%) reported water heating as the main contributor to household energy costs (compared to 22% of high income households).
• Nine percent reported cooking as the main contributor to household energy costs, more so than middle and high income households (6% and 3% respectively).

Two thirds of households whose main source of income was from a government pension (67%) switched appliances off at the wall when not in use, and took shorter showers (65%), which was significantly higher than for groups with other types of income as their main source.

Watching TV was identified as the main contributor to household energy costs in the last 12 months for 6% of low wealth households and 4% of households whose main source of income was a government pension or allowance. Both these rates were higher than for other wealth and main source of income groups.

The number of people employed within a household may also have an impact on energy costs, as more energy is likely to be consumed when residents are at home rather than at work. Significantly more low income, low wealth and households where the main source of income was from a government pension had no persons employed in the household (58%, 40% and 85% respectively) than other household groups.