1376.0 - Local Government and ABS, Mar 2010  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 25/03/2010   
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ESTIMATES OF PERSONAL INCOME


PERSONAL INCOME IN LOCAL GOVERNMENT AREAS

Recently, the ABS has released two time series with small area estimates of personal income using data from the Australian Taxation Office. Both of these series are available for Local Government Areas and other geographies below state/territory, and include data for the years 2003-04 to 2006-07.

Analysing change in sources of personal income over time can provide valuable insight into the nature of regional economies and aspects of the economic wellbeing of the people who live there. These data can be used to explore questions such as:

  • whether regional economies have grown at different rates
  • whether high income regions also experienced high growth in income
  • are there low income-high growth regions that are 'catching up' to high income regions.

Estimates of Personal Income for Small Areas, Time Series, 2003-04 to 2006-07 (cat.no. 6524.0.55.002) was released on 17 December 2009 and contains estimates of the sources of personal income, including Wages and salaries, Own unincorporated business, Investments, Superannuation and annuities and Other income. The data includes the number of persons, total income and average income from each of those sources. While total income grew this period at an average annual growth rate of 8.2%, there was variation between the sources of income and between regions. For example, the growth rate of income from Own unincorporated business was positive in all capital cities, but negative in the balance of four states (NSW, Vic, SA Tas). Files containing data for Local Government Areas can be found in the Downloads tab of this release.

Wage and Salary Earner Statistics for Small Areas, Time Series, 2003-04 to 2006-07 (cat. no. 5673.0.55.003) was released on 12 March 2010 and contains more detailed data relating to Wage and salary earners. Files containing cross-classifications by age, sex, occupation and income for Local Government Areas can be found in the Downloads tab of this release. In Australia, average income from Wages and salaries grew at an average annual growth rate of 4.5% in this period, reaching $42 081 in 2006-07.

Tables 1 and 2 below show an example of the Local Government Area data available. Table 1 contains the highest average Wage and salary income Local Government Areas in capital cities in 2006-07. Nine of the top ten Local Government Areas were in Sydney.

Table 1: Top ten average Wage and salary incomes - Capital Cities 2006-07

RankLocal Government AreaAverage Wage and salary income
1Mosman (A) (NSW)$106,397
2Woollahra (A) (NSW)$85,225
3Hunters Hill (A) (NSW)$77,798
4North Sydney (A) (NSW)$72,939
5Ku-ring-gai (A) (NSW)$71,371
6Leichhardt (A) (NSW)$68,703
7Lane Cove (A) (NSW)$67,777
8Willoughbuy (A) (NSW)$67,687
9Manly (A) (NSW)$66,365
10Peppermint Grove (S) (WA)$66,263


All of these Local Government Areas in Table 1 recorded growth rates in average Wage and salary income higher than the average for Australia (4.5%). These ranged from 4.8% in Lane Cove to 9.1 % in Mosman.

Table 2 shows highest average Wage and salary income Local Government Areas outside of the capital cities. Ashburton Shire, the highest average Wage and salary income area outside of the capital cities, was twelfth highest in Australia.

Table 2: Top ten average Wage and salary incomes - Regional Areas 2006-07

RankLocal Government AreaAverage Wage and salary income
1Ashburton (S) (WA)$64,920
2Roeburne (S) (WA)$63,418
3Roxby Downs (M) (SA)$61,633
4East Pilbara (S) (WA)$61,555
5Isaac (R) (Qld)$60,482
6Port Hedland (T) (WA)$59,967
7Coolgardie (S) (WA)$57,565
8Leonora (S) (WA)$55,875
9Central Highlands (R) (Qld)$53,079
10Mount Isa ( C ) (Qld)$52,416



Growth rates in average Wage and salary income for the Local Government Areas in Table 2 ranged from 4.0% in Isaac to 7.5% in Mt Isa.

High income does not necessarily mean high growth rates. Similarly, high growth rates do not necessarily mean high incomes. While (as seen in Table 2) some LGAs with high average Wage and salary incomes experienced low average annual growth rates, other regions recorded both low incomes and low growth rates in average Wages and salaries. Table 3 presents a selection of LGAs that fall into four categories of income and growth. LGAs were grouped according to whether their average annual incomes in 2006-07 fell in the top or bottom 20% of LGAs and whether their average annual growth rate in average Wages and salaries was above or below the Australian rate of 4.5%.

Table 3: Selected LGAs by Average Annual Wage and Salary Income and Growth Rate

High Income (1)Low Income (2)
High Growth (3)Mosman (A) (NSW)Kent (S) (WA)
Central Highlands (Qld) Elliston (DC) (SA)
Roxby Downs (M) (SA)Break O'Day (M) (Tas)
Peppermint Grove (S) (WA)Kojonup (SA) (WA)
Palmerston ( C ) (NT)Paroo (S) (Qld)
Low Growth (4)Hornsby (A) (NSW)Walcha (A) (NSW)
Burnside (C ) (SA)Kimba (DC) (SA)
Moonee Valley (C ) (Vic)Loddon (S) (Vic)
Cloncurry (S) (Qld)Mornington (S) (Qld)
Leonora (S) (WA)Tasman (M) (Tas)


(1) Average annual Wage and Salary Income in 2006-07 in top Quintile (more than $42,550)

(2) Average annual Wage and Salary Income in 2006-07 in bottom Quintile (less than $30,995)

(3) Average annual growth rate in average Wage and Salary income more than 4.5%

(4) Average annual growth rate in average Wage and Salary income less than 4.5%

Further details are available in Estimates of Personal Income for Small Areas, Time Series, 2003-04 to 2006-07 (cat. no. 6524.0.55.002) and Wage and Salary Earner Statistics for Small Areas 2006-07 (cat. no. 5673.0.55.003)