Charis Chang* looks at new statistics showing how much difference it makes to our disposable incomes to be single, married or have kids.
Photo: Emma Bauso
Everyone knows when you couple-up you finally get to save money on groceries, electricity and other bills.
Now new statistics have revealed how much difference it makes to your disposable income to be single, married or have kids.
The Australian Bureau of Statistics (ABS) released its Survey of Income and Housing 2017–19 this month and it provides an insight into how relationships impact your income.
The ABS calculates “equivalised disposable income” to make it easier to compare individuals in households of different compositions and ages.
It assumes couples will be able to save money on things like rent or electricity compared with single-person households but also recognises children usually have fewer needs than adults.
For example, the survey found a single person aged under 35 had an average weekly income of $1,257 before tax.
Their average equivalised disposable income was calculated to be $1,017, which is very similar to their after-tax income of $1,010.
In comparison, a couple also aged under 35 with an after-tax income of $2,034 would technically have $1,017 each to spend, however, the value of their equivalised disposable income is calculated to be $1,355 per person.
This is because the calculation assumes the couple will make savings on their bills.
For couples with at least one child aged under five years, their equivalised disposable income was valued at $1,018 per person, lower than the amount for couples without kids even though their average household wage was higher.
The ABS survey has also highlighted how slowly wages are growing.
Average equivalised disposable income in Australia only increased by $44 in 10 years, rising from $1,018 to $1,062 in 2017–18.
In comparison, in the four years leading up to 2007–08, incomes grew by $220 in real terms.
The increase has also been less for those in lower-income households.
“For low-income households there has been an increase of $28 in average weekly household income over the past decade, while for high-income households there was an increase of $57,” ABS Chief Economist, Bruce Hockman said.
Australia’s before-tax average weekly income was found to be $2,511, although household incomes vary greatly between States and capital cities.
Among the capitals, Darwin has the highest average household income of $3,075 while Sydney comes in second on $2,867.
While income inequality has remained fairly stable, the ABS found there was a marginal increase in wealth inequality.
Household wealth is the value of all the assets owned by a household minus the value of its debts and other liabilities.
The figures revealed Australia’s average household wealth was now valued at more than $1 million.
This has jumped up by 37 per cent in just over 10 years thanks mainly to the property boom and increasing superannuation balances.
“In 2017–18, the wealthiest 20 per cent of households still held over 60 per cent of all household wealth, now averaging $3.2 million per household,” Mr Hockman said.
“By comparison, those in the middle 20 per cent held 11 per cent of all household wealth, averaging $564,500 per household.”
“The lowest 20 per cent controlled less than 1 per cent of all household wealth, with average wealth currently at $35,200.”
* Charis Chang is a senior journalist at News.com.au HQ. She tweets at @CharisChang2.
This article first appeared at www.news.com.au.
