Final Report on RREF 2001 - Department of Health

Part B: Development of Options for a Revised RREF
VARIABLE 1: MEDIAN HOUSEHOLD INCOME - MHHY
Data Source:
Census, updated every five years
Issues:
• Median household income (MHHY) reports the middle weekly income level for each
LGA, that is, 50% of households in the LGA have a higher income and 50% have a
lower income. Each LGA thus has a different median income.
• This variable has been reversed as a weighting variable, so that LGAs with the lowest
incomes score 9, and receive the highest weighting, and those with the highest incomes
score 0 and receive no weighting.
• The distribution of incomes by LGAs is skewed, with only 5 LGAs in the three lowest
deciles (high income), 27 in the middle four deciles, and 46 in the three highest (low
incomes).
• As a large number of LGAs receive a high or moderate weighting on MHHY, weighting
for MHHY has a major effect in redistribution of growth funds.
• A large number of LGAs receive a high or moderate weighting on MHHY.
Variable 1: Median Household Income
Decile score Income $ per week No of LGAs % of LGAs
0 922.601-980.000 1 1.28
1 865.201-922.600 2 2.56
2 807.801-865.200 2 2.56
3 750.401-807.800 5 6.41
4 693.001-750.400 8 10.26
5 635.601-693.000 9 11.54
6 578.201-635.600 5 6.41
7 520.801-578.200 13 16.67
8 463.401-520.800 22 28.21
9 406.001-463.400 11 14.10
Minimum $406 Bass Coast
Median $546.5 Wangaratta,
Darebin
Maximum $980 Nillumbik
Range $574
<strong>Final</strong> <strong>Report</strong> July 2001 50