Australia Yearbook - 2001

252 Year Book Australia 2001
The most recent information on current income
distribution on an income unit basis is available
from the 1997–98 Survey of Income and Housing
Costs. Income refers to gross receipts of
recurring and usually regular cash flows at the
time of interview. It comprises cash receipts from
wages and salaries, profit or loss from own
business, property income in the form of interest,
rent and dividends, private transfers such as
superannuation and child support, and cash
transfers from government in the form of benefits
and allowances.
Income distribution
As table 7.1 shows, in 1997–98 the average gross
weekly income for all income units was $658. The
median gross weekly income (i.e. the midpoint
when all units are ranked in order of income) was
considerably lower at $499. This difference
reflects the typically asymmetric distribution of
income where a large number of units have nil or
very low incomes and a smaller number have very
high incomes.
Income units cover a wide variety of individuals
and family types, and include varying numbers of
people. These range from young single people just
out of school, to couples with dependent children,
through to elderly retired couples or single
people, i.e. units at various stages of the life cycle
and working career. It is therefore not surprising
that income is distributed unevenly across all
income units. This was the case in 1997–98 when
income units in the lowest quintile (i.e. the lowest
20% of units when ranked according to income)
received an average gross weekly income of $124,
compared to $1,590 received by those in the
highest quintile (i.e. the highest 20% of units when
ranked according to income).
Income units in the lowest quintile were mainly
single people. One-third of these were living with
parents or with relatives. Few people were
employed and most relied on government pensions
and allowances as their principal source of income.
In comparison, income units in the highest
quintile were usually couples with or without
dependent children, and most had two earners.
Their principal source of income was mainly
wages and salaries, with very few relying on
government pensions and allowances.
See also the Centenary Article Household income
and its distribution following this chapter, which
explores the measurement issues in detail and
over longer time frames.
Changes in income, 1994–95 to 1997–98
From 1994–95 to 1997–98, the mean (average)
gross weekly income for all income units in
private dwellings increased by 10% from $596 to
$658 (table 7.2). The mean weekly income of the
largest group of income units, those who were
mainly dependent on wage and salary income,
increased by 11% from $801 to $888. The mean
income of those relying on government cash
benefits also increased by 11% over this period.
Movements in income from other sources over
the period were more volatile. Mean incomes for
units dependent on their own businesses were
particularly volatile. From 1994–95 to 1997–98,
their income increased by 12%. Mean income of
those dependent on other income increased by
30% between 1994–95 and 1997–98.
The degree of inequality in the income
distribution of all income units remained almost
unchanged between 1994–95 and 1997–98
(table 7.3). Income inequality can be measured by
comparing the share of total income received by
each quintile group. While the shares of total
income received by the income quintile groups
changed slightly over the three years, the changes
are not statistically significant.