Australia Yearbook - 2001

254 Year Book Australia 2001
7.3 ALL INCOME UNITS, Percentage Share of Gross Weekly Income by Quintile
Percentage share
1994–95
1995–96
1996–97
1997–98
%
%
%
%
Gross weekly income quintile
Lowest 3.6 3.8 3.8 3.8
Second 9.3 9.1 9.4 9.0
Third 15.2 15.0 15.2 15.0
Fourth 24.0 23.7 24.0 23.9
Highest 47.9 48.3 47.5 48.3
All income units 100.0 100.0 100.0 100.0
Source: Income Distribution, Australia (6523.0).
Household expenditure
Information about income provides one indicator
of standard of living. However, it does not always
accurately indicate command over goods and
services, particularly when income is variable or
expenditure financed through running down
assets or acquiring debts. In these cases, the
levels and patterns of household expenditure can
provide an alternative indicator of living
standards.
The latest household expenditure information is
available from the 1998–99 Household
Expenditure Survey. This was the sixth major
survey of its kind undertaken by the ABS. It
collected detailed information on the
expenditure, income and characteristics of
households in Australia.
The household is the usual unit of analysis for
expenditure because it is assumed that sharing of
the use of goods and services occurs at this level.
If smaller units are adopted, for example person
or income unit, then it is difficult to attribute the
use of shared items such as food, accommodation
and household goods.
Levels of expenditure
In 1998–99, Australian households spent an
average of $699 per week (table 7.4) on goods
and services. The level and pattern of expenditure
differs between households, reflecting
characteristics such as income, household
composition, household size and location.
For example, the level of household expenditure
differs between households with different main
sources of income. In 1998–99, households
relying mainly on employee income had the
highest average weekly expenditure at $866,
followed by those relying on own business
income ($745). Households whose primary
source of income was government pensions and
allowances had the lowest average weekly
expenditure at $365. Average weekly income in
Australian households followed a similar pattern,
with households relying mainly on employee
income having an average weekly income of
$1,216, compared with $980 for those relying
mainly on own business income and $308 for
those whose main source of income was
government pensions and allowances.
The pattern of household expenditure also varies
between these groups. For example, households
whose principal source of income was
government pensions and allowances spent
proportionately more than the other groups on
essentials such as current housing costs (16% of
household expenditure, compared with 14% for
households relying mainly on employee income)
and food and non-alcoholic beverages
(22%, compared with 18% for households relying
mainly on employee income). They spent
proportionately less on some of the more
discretionary items, for example recreation
(11%, compared with 13% for households relying
mainly on employee income).
Income support programs of
the Department of Family and
Community Services (FaCS)
On 1 July 1947, with the passage of the Social
Services Consolidation Act 1947, all Acts
providing social service benefits were
amalgamated into the Social Security Act 1947.
This Act was repealed and in July 1991 was
replaced with the Social Security Act 1991.
The main income support payments provided by
the Commonwealth under the 1991 Act for the
financial years 1996–97 to 1999–2000 are listed in
table 7.5.