Senior secondary Economics

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Poverty and the distribution of income in Australia

Use this resource to complete the questions on the Poverty and the distribution of income in Australia – Data analysis worksheet.

Table 1: Income share of Australian households 2015–16

Income share

%

Lowest quintile

7.7%

Second quintile

12.5%

Third quintile

17.0%

Fourth quintile

23.0%

Highest quintile

39.8%

All households

100.0%

Source: Australian Bureau of Statistics, 6523.0 – Household Income and Wealth, Australia, 2015–16

Figure 1: Income Gini coefficient 1994–95 to 2015–16[1]

Line graph showing the income Gini coefficient between 1994-5 and 2015-16. The x-axis shows the years between 1994-1995 and 2015-16. The y-axis displays the Gini coefficient and has 6 increments beginning with 0.250 and ending with 0.500. There are 2 lines on the graph. The top line shows the Gini coefficient for gross household income (income before tax) and the bottom line shows the net household income (income after tax). The top line shows the Gini coefficient rose and fell within the range of 0.410 and 0.440 in relation to gross household income over the years. The bottom line almost mirrors the first line in the lower range of between 0,290 and 0,340.


Source: ABS: 6523.0 - Household Income and Wealth, Australia, 2015–16

Table 2: Poverty Lines: Australia, March Quarter, 2018[2]

Income unit

(Head in workforce)

Including housing

($ per week)

Other than housing

($ per week)

Couple

$693.78

$507.43

Couple plus 1

$833.96

$630.75

Couple plus 2

$974.14

$754.08

Couple plus 3

$1,114.32

$877.41

Couple plus 4

$1,254.50

$999.37

Single person

$518.63

$349.03

Single person plus 1

$665.82

$479.37

Single person plus 2

$805.90

$602.70
Single person plus 3;

$946.08

$726.03
&single person plus 4

$1,086.26

$849.35

Source: Melbourne Institute: Applied Economic & Social Research, Poverty Lines: Australia, March Quarter 2018

Table 3: Number of households by income range 2015–16

Equivalised disposable income per week

Number of households

Proportion of total number of households

Negative income

19,600

0.22

No income

13,200

0.15

$1–99

92,400

1.03

$100–199

48,300

0.54

$200–299

87,800

0.98

$300–399

159,200

1.78

$400–499

598,900

6.68

$500–599

359,400

4.01

$600–699

401,600

4.48

$700–799

398,700

4.45

$800–899

341,400

3.81

Total

2,520,500

28.1

Source: ABS: 6523.0 – Household Income and Wealth, Australia, 2015–16

Table 4: Comparison of Henderson Poverty Lines with the income of adults who receive maximum welfare payments and have no other income, March Quarter 2018

Part A: Married couple

Income unit

Basic payment of person 1

Basic payment of person 2 (Partner)

Family Tax Benefit Part A

Family Tax Benefit Part B

Rent Assistance

Total Income

Poverty Line

Allowee

$251.70

$251.70

0.00

0.00

$63.50

$566.90

$693.78

Pensioner

$342.05

$342.05

0.00

0.00

$63.50

$747.60

$595.69

Couple plus 1

$251.70

$251.70

$93.17

$26.24

$79.17

$701.98

$833.96

Couple plus 2

$251.70

$251.70

$186.34

$26.24

$79.17

$795.15

$974.14

Couple plus 3

$251.70

$251.70

$279.51

$50.12

$89.39

$922.42

$1,114.32

Couple plus 4

$251.70

$251.70

$400.68

$50.12

$89.39

$1,043.59

$1,254.50

Part B: Single person

Income unit

Basic payment of person 1

Basic payment of person 2 (Partner)

Family Tax Benefit Part A

Family Tax Benefit Part B

Rent Assistance

Total Income

Poverty Line

Allowee

$277.30

-

0.00

0.00

$67.40

$344.70

$518.63

Pensioner

$453.80

-

0.00

0.00

$67.40

$521.20

$420.54

Single person plus 1

$382.30

-

$93.17

$55.30

$79.17

$609.94

$567.63

Single person plus 2

$382.30

-

$186.34

$55.30

$79.17

$703.11

$707.81

Single person plus 3

$382.30

-

$279.51

$79.17

$89.39

$830.37

$847.89

Single person plus 4

$382.30

-

$400.68

$79.17

$89.39

$951.54

$988.17

Source: Melbourne Institute: Applied Economic & Social Research, Poverty Lines: Australia, March Quarter 2018

Table 5: Poverty lines by family type, 2015–16 ($ per week after tax, including social security payments)

Income unit

50% of median income before housing costs

60% of median income before housing costs

50% of median income after housing costs

60% of median income after housing costs

Lone person

$432.73

$519.28

$353.29

$423.94

Couple only

$649.10

$778.92

$529.93

$635.91

Sole parent, 2 children

$692.37

$830.85

$565.26

$678.31

Couple, 2 children

$908.74

$1,090.48

$741.90

$890.28

Source: Davidson, P., Saunders, P., Bradbury, B. and Wong, M. (2018), Poverty in Australia, 2018. ACOSS/UNSW Poverty and Inequality Partnership Report No. 2, Sydney: ACOSS.

Table 6: Number and percentage of people below the 50% and 60% of median income poverty lines in 2015–16

 

50% of median poverty line

60% of median poverty line

Percentage of people below the poverty line

13.2%

21.1%

Percentage of children below the poverty line

17.3%

25.5%

Number of people below the poverty line

3,051,500

4,885,200

Number of children below the poverty line

739,300

1,087,500

Average poverty gap for those below the poverty line ($/week)

$135.00

$206.00

Average poverty gap for those below the poverty line (% of poverty line)

38%

49%

Source: Davidson, P., Saunders, P., Bradbury, B. and Wong, M. (2018), Poverty in Australia, 2018. ACOSS/UNSW Poverty and Inequality Partnership Report No. 2, Sydney: ACOSS.

Table 7: Rates of poverty - percentages of people from different groups living below poverty lines in 2015–16 (%)

Part A: All people

 

50% of median

60% of median

All people

13.2%

21.1%

Part B: By age

 

50% of median

60% of median

Under 15 years

17.3%

25.5%

15-24 years

13.9%

20.2%

25-64 years

12.1%

17.6%

65 years and over

11.6%

28.3%

65 years and over, renting

43.4%

57.9%

Part C: Children

 

50% of median

60% of median

Children in sole parent households

39.4%

52.3%

Children in couple households

13.1%

20.1%

Children in other households

10.0%

21.0%

All children

17.3%

25.5%

Part D: Family type

 

50% of median

60% of median

Single, no children (15-64 years)

26.2%

34.9%

Couple, no children (15-64 years)

18.0%

46.5%

Sole Parent

32.0%

43.2%

Single, no children (64 years and over)

9.6%

13.2%

Couple, no children (64 years and over)

11.1%

26.1%

Couple, children

11.9%

18.3%

Other

7.1%

11.6%

Part E: By income source

 

50% of median

60% of median

Wage and salary

6.9%

11.5%

Social security payment

34.5%

56.4%

Other income

14.9%

17.5%

By social security payment type

50% of median

60% of median

Newstart allowance

54.6%

66.5%

Youth allowance

63.7%

70.4%

Parenting payment

52.3%

67.6%

Disability support pension

36.4%

56%

Carer payment

17.1%

42.1%

Age pension

12.2%

31.5%

All recipients

25.6%

44.1%

Source: Davidson, P., Saunders, P., Bradbury, B. and Wong, M. (2018), Poverty in Australia, 2018. ACOSS/UNSW Poverty and Inequality Partnership Report No. 2, Sydney: ACOSS.

 

[1] The top line in figure 1 shows the Gini coefficient for gross household income (income before tax) and the bottom line shows the net household income (income after tax).

[2] All figures refer to income after tax.

 

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