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IMPUTED RENT The housing costs for deriving net imputed rent for each tenure type are unchanged, however the net imputed rent estimates are impacted by the change in gross imputed rent estimates. Net imputed rent is estimated as gross imputed rent less housing costs. For owner-occupiers, the housing costs subtracted are those which would normally be paid by landlords i.e. general rates, water and sewerage rates, mortgage interest, building insurance, and repairs and maintenance. For households paying subsidised rent (e.g. tenants of an employer or of a state/territory housing authority) and households occupying their dwelling rent-free, the housing costs that are subtracted are largely made up of the reported rent paid, but also include other housing costs incurred, such as rates, are also subtracted for some tenure types. The availability of imputed rent estimates allows the analysis of household income to be extended to include the imputed rental incomes that flow to people living in homes owned by the occupant and those paying subsidised rent. Such imputations allow for more meaningful comparison of the income circumstances of people living in different tenure types, and to understand changes over time in income levels and the distribution of income when tenures may also be changing over time. Including imputed rent as part of household income and expenditure conceptually treats owner-occupiers as if they were renting their home from themselves, thus simultaneously incurring rental expenditure and earning rental income. Imputed rent is included in income on a net basis i.e. the imputed value of the services received less the value of the housing costs incurred by the household in their role as a landlord. The new experimental methodologies for household level imputed rent estimates are explained in Experimental Estimates of Imputed Rent, Australia, 2013–14 (cat. no. 6525.0). The information paper also quantifies the impact of the new methodologies compared to the previous methodologies. Document Selection These documents will be presented in a new window.
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