POVERTY MEASUREMENT
A POVERTY AND INEQUALITY
PARTNERSHIP POSITION PAPER
MAY 2025
ACOSS AND UNSW SYDNEY
Acknowledgemen s
Ou hanks o all hose consul ed o his epo , including Po e y and Inequali y Pa ne ship suppo e s,
ACOSS membe s, and po e y esea che s.
This epo was w i en by D Pe e Da idson a need oknow consul ing, D Yu is hi Naidoo and Associa e
P o esso B uce B adbu y a he Social Policy Resea ch Cen e, UNSW Sydney.
© Aus alian Council o Social Se ice (ACOSS) and UNSW Sydney 2025
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
is published by he Aus alian
Council o Social Se ice, in pa ne ship wi h UNSW Sydney.
Locked Bag 4777
S awbe y Hills
NSW 2012 Aus alia
Email: in [email protected] g.au
This epo is an ou pu o he Po e y and Inequali y Pa ne ship, be ween ACOSS and UNSW Sydney. Find
ou mo e a h p://po e yandinequali y.acoss.o g.au
ISBN: 978 085871 111 2
DOI: h ps://doi.o g/10.5281/zenodo.13534526
Licence: h ps://c ea i ecommons.o g/licences/by/4.0/
Sugges ed ci a ion:
Da idson, P, Naidoo, Y., and B adbu y, B. (2025),
Po e y measu emen : A Po e y and Inequali y Pa ne ship
posi ion pape
, Sydney: Aus alian Council o Social Se ice (ACOSS) and UNSW Sydney.
Pho os by is ockpho o.com. All images a e ep esen a i e only.
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
2
ACOSS Pa ne s
DAVID MORAWETZ
SOCIAL JUSTICE FUND JOHN MITCHELL
3
Glossa y
ACOSS Aus alian Council o Social Se ice
Budge s anda ds
Minimum household budge s de eloped o calcula e he
cos o essen ial goods and se ices needed o achie e a
socially accep able li ing s anda d.
Disposable income
Household income om all sou ces (e.g. wages, bene i s)
minus income ax, ypically used as he basis o po e y
measu emen .
Equi alence scale
A me hod used o adjus household income based on
size and composi ion, ensu ing compa isons o li ing
s anda ds ac oss di e en household ypes. Commonly
used scale: he modi ied OECD scale.
Hende son po e y lines
Aus alian po e y h eshold de i ed om he 1975
Na ional Po e y Inqui y, o iginally linked o he basic
wage and la e o a e age ea nings.
HILDA su ey Household, Income and Labou Dynamics in Aus alia - a
longi udinal s udy.
Impu ed en
An es ima e o he alue o housing se ices ha
homeowne s ecei e om li ing in hei own homes.
Used o e lec housing esou ces in po e y esea ch.
Ma e ial dep i a ion
A o m o di ec po e y measu emen whe e indi iduals
lack key goods o se ices deemed essen ial by he
communi y, due o inancial cons ain s.
OECD equi alence scale
A s anda d equi alence scale whe e he i s adul is
assigned a alue o 1, addi ional adul s 0.5, and each
child unde 15 a alue o 0.3.
Mul idimensional Po e y
Index (MPI)
A composi e measu e o po e y ha inco po a es
a ious dimensions such as educa ion, heal h, li ing
s anda ds.
Pe son Le el In eg a ed
Da a Asse (PLIDA)
An in eg a ed da a esou ce ha links ax, social secu i y
and o he adminis a i e da ase s o esea ch.
Mul idimensional Po e y
Index (MPI)
A composi e measu e o po e y ha inco po a es
a ious dimensions such as educa ion, heal h, li ing
s anda ds.
Social T ans e s in Kind
(STIK)
Non-cash go e nmen bene i s such as subsidised
heal hca e o housing.
Su ey o Income and
Housing (SIH)
Regula su ey by he Aus alian Bu eau o S a is ics
(ABS) p o iding de ailed in o ma ion on income, housing
and weal h.
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
4
Con en s
Fo ewo d 7
Execu i e summa y 8
De ailed ecommen a ions o income-based po e y measu es 10
1. Backg ound: Pu pose and de elopmen o po e y
esea ch in Aus alia and in e na ionally 14
1.1 The pu poses o po e y measu emen 14
1.2 The de elopmen o po e y esea ch 16
1.3 The Na ional Po e y Inqui y and ‘Hende son Po e y
Lines’ 16
1.4 Inc easing di e si y o esea ch in o po e y
and disad an age (1980s-2020s) 16
1.5 Recen po e y esea ch in Aus alia 16
1.6 O icial po e y measu es in o he weal hy na ions 17
2. De ining po e y and i s ela ionship wi h wide
esea ch on social and economic disad an age 18
2.1 A de ini ion o po e y 18
2.2 The ela ionship be ween income-based po e y measu es
and di ec measu es o inadequa e li ing s anda ds 18
2.3 B inging he oice o people a ec ed in o po e y
esea ch 21
3. Measu ing income-based po e y 24
3.1 Key equi emen s o accu a e and impac ul po e y
measu emen 24
3.2 Income: de ini ion and scope 24
Recommenda ions: De ini ion o income 28
3.3 Adjus men s o be e cap u e household spending
powe 28
Recommenda ions: Adjus men s o cap u e majo a ia ions in li ing cos s 30
3.4 Po e y h esholds 31
Recommenda ions: Po e y h esholds 37
3.5 Da a gaps and eliabili y 38
Recommenda ions: Da a a ailabili y and eliabili y 39
5
4. Ou pu s o po e y esea ch 41
Recommenda ions: Ou pu s o po e y esea ch 43
5. A anspa en and obus p ocess o de elop o icial po e y measu es 44
Recommenda ions: An open and obus p ocess o de elop o icial po e y
measu es 44
A achmen 1: Recen income-based po e y
measu es used in Aus alian esea ch 46
A achmen 2: Po e y measu es used in o he weal hy na ions 48
Endno es 50
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
6
This
Po e y measu emen : A Po e y and Inequali y Pa ne ship posi ion pape
is he 25 h pape om he Po e y and Inequali y Pa ne ship be ween ACOSS
and UNSW Sydney. This Pa ne ship was es ablished in 2017 o add ess po e y
and inequali y in Aus alia h ough esea ch and ad ocacy.
We ha e consis en ly epo ed on he na u e and ex en o po e y h ough ou
Po e y in Aus alia se ies, using he 50% o median po e y line (as used by
he OECD) in he absence o an o icial Aus alian po e y measu e. This pape
seeks o in o m he de elopmen o o icial po e y measu es in Aus alia. I
ecommends he adop ion o a dual app oach, which includes income-based
me ics complemen ed by di ec o mul idimensional me ics. The pape
assesses a ange o income-based po e y me ics and makes ecommenda ions
abou he subs ance and p ocess o add ess his c i ical gap in na ional
p og ess indica o s.
The Po e y and Inequali y Pa ne ship elies on he suppo o non-go e nmen
o ganisa ions including 54 easons (pa o Sa e he Child en Aus alia G oup),
ARACY, coheal h (a Vic o ian communi y heal h se ice), Foodbank Aus alia,
Jesui Social Se ices, Li e Wi hou Ba ie s, Mission Aus alia, SSI, and The
Smi h Family. Addi ionally, i is suppo ed by he Social Jus ice Fund, pa o he
Aus alian Communi ies Founda ion, and John Mi chell.
We would like o hank UNSW’s P esiden and Vice-Chancello , P o esso A ila
B ungs; Vice-P esiden Socie al Impac , Equi y and Engagemen , P o esso
Ve i y Fi h; Eme i us P o esso Eileen Bald y; and he ACOSS Boa d o backing
his Pa ne ship and i s impo an wo k.
Fo ewo d
Cassand a Goldie
ACOSS
Ca la T eloa
Social Policy
Resea ch Cen e,
UNSW
7
Execu i e summa y
Pu pose o his epo
The pu poses o his posi ion pape on po e y measu emen a e o:
• e lec he g owing consensus among esea che s and ad oca es on income-
based po e y measu es speci ically, and he need o a dual app oach
o measu ing po e y comp ised o income-based and di ec (including
mul idimensional) measu es, and o suppo u he dialogue;
• in o m he u u e me hodology o he Po e y and Inequali y Pa ne ship’s
esea ch using income-based po e y measu es; and
• in o m he de elopmen o o icial po e y measu es, closing a majo gap in
Aus alian social esea ch and policy.
O igins and scope o his posi ion pape
In la e 2024 he Po e y and Inequali y Pa ne ship be ween ACOSS and UNSW
Sydney unde ook consul a ions wi h ou esea ch pa ne s, ACOSS membe s
and po e y esea che s in o he Aus alian esea ch ins i u ions o help build
consensus on income-based po e y measu es. This included a discussion
pape and wo online mee ings. This pape is an ou come o hose discussions.
A he same ime, he B o he hood o S Lau ence and he Melbou ne Ins i u e
unde ook consul a ions on a Mul idimensional Po e y Index o Aus alia
based on he wo k o Alki e and associa es a he Uni e si y o Ox o d.1 These
included a discussion pape , a semina wi h P o esso Alki e, and a con e ence
in Melbou ne in No embe 2024.
This pape ocusses on income-based po e y measu es. A e b ie ly
examining he his o y o po e y measu emen in Aus alia and easing ou he
ela ionship be ween income-based and di ec o mul idimensional measu es
and how esea ch can be in o med by li ed expe ience, i makes a se ies o
ecommenda ions o in o m o icial income-based po e y measu es and ou
own ‘Po e y in Aus alia’ esea ch se ies.2
The p oblem – unlike mos na ions, Aus alia lacks o icial measu es o po e y
Unlike mos o he na ions, Aus alia lacks an o icial po e y measu e. I has
been le o academic esea che s and communi y o ganisa ions (including
he Po e y and Inequali y Pa ne ship) o ca y he o ch o po e y esea ch
and hold go e nmen s and o he ins i u ions o accoun o he scale and
pe sis ence o po e y in Aus alia
• Aus alia has adop ed he Uni ed Na ions
Sus ainable De elopmen Goals
,
which equi e us o educe po e y o e ime by e e ence o an o icial
na ional de ini ion.
• Howe e , o icial measu es o wellbeing such as he
Measu ing Wha Ma e s
amewo k a e silen on po e y.
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
8
• The go e nmen ’s Economic Inclusion Ad iso y Commi ee (EIAC) was
asked wi h
p o iding ad ice on economic inclusion including policy
se ings, sys ems and s uc u es, and he adequacy, e ec i eness and
sus ainabili y o income suppo paymen s
, ye po e y educ ion was no
included in i s Te ms o Re e ence.3
• EIAC has ecommended ha o icial measu es o po e y and a ge s o
educe i be de eloped by go e nmen .
De ining po e y
People a e in po e y when hei income and esou ces a e inadequa e o a ain
a socially accep able li ing s anda d.
4
I ollows ha po e y esea ch can be di ided in o wo s ands: measu ing
economic esou ces
and
unaccep able li ing s anda ds
.
The amilia income-based po e y measu es such as ‘po e y lines’ a e
measu es o economic esou ces – he minimum needed o a oid po e y. As
such hey measu e li ing s anda ds indi ec ly.
O he measu es aim o assess he adequacy o li ing s anda ds di ec ly. They
include uni-dimensional measu es, such as inancial s ess; and mul idimensional
measu es, such as mul iple dep i a ion and mul idimensional po e y indica o s
ha assess li ing s anda ds ac oss di e en domains o wellbeing - o example
nu i ion, housing, heal h, social isola ion, and educa ion.
These wo s ands o po e y esea ch a e mu ually ein o cing:
• Income-based measu es iden i y people likely o ace po e y due o a lack
o economic esou ces and se benchma ks o he adequacy o minimum
incomes.
• Di ec measu es o inadequa e li ing s anda ds can be used o alida e
income-based measu es, cap u e he impac s o po e y on people ac oss a
ange o dimensions, and in o m he de elopmen o policies o ease po e y
ha ex end beyond income suppo , such as educa ion, heal h and housing
policies.
A achmen 1 lis s examples o ecen income-based po e y esea ch in
Aus alia.
A achmen 2 lis s se e al o icial income-based po e y measu es adop ed
by o he weal hy na ions and in luen ial in e na ional ins i u ions such as he
OECD.
9
1.2 The de elopmen o po e y esea ch
Po e y esea ch has a long in e na ional adi ion, da ing back (in he Uni ed
Kingdom a leas ) o he indus ial e olu ion o he 19 h cen u y. O e ime,
po e y esea ch has de eloped om a co e ocus on income o consump ion-
based measu es (‘po e y lines’) o esea ch ha maps and hen acks he
e ec s o po e y ac oss dimensions o li e.8
1.3 The Na ional Po e y Inqui y and ‘Hende son Po e y
Lines’
In Aus alia he ex en o po e y has only been igo ously measu ed by social
scien is s o e he pas 60 yea s, beginning wi h P o esso Hende son’s pa h-
b eaking su ey o po e y in Melbou ne in 1966. He was la e commissioned by
he Aus alian go e nmen o lead a na ional po e y inqui y, which epo ed
in 1975. The cen epiece o ha epo was esea ch in o he ex en o po e y
ac oss Aus alia and he p o ile o people a ec ed, based on se o income
h esholds la e called ‘Hende son Po e y Lines’.9
Despi e he o icial s a us o he epo om he Hene son Po e y Inqui y
and he igou o he analysis unde aken, he hen Aus alian go e nmen did
no endo se he Hende son Po e y Lines no any o he me ic as an ‘o icial’
measu e o po e y.
1.4 Inc easing di e si y o esea ch in o po e y and
disad an age (1980s-2020s)
Du ing he 1980s and subsequen ly, po e y esea ch was acili a ed by
imp o emen s in income and o he da a, mic osimula ion models, and he
eme gence o a di e si y o academic ins i u es unde aking esea ch in o
po e y, income inequali y and he impac o public policies upon hem:
• In Aus alia new measu es o po e y we e de eloped and deba ed,
including he ‘50% o median income’ benchma k used by he OECD, budge
s anda ds, and ‘di ec ’ measu es o ma e ial dep i a ion and inancial s ess.10
• These measu es we e o en de eloped in collabo a ion wi h (o in esponse
o) he wo k o esea che s in o he na ions, especially hose wi h which
Aus alia usually compa es i sel (such as he Uni ed Kingdom, New Zealand
Canada and I eland, oge he wi h he Eu opean Union).
• F om a wide in e na ional pe spec i e, Uni ed Na ions agencies ha e
p omo ed measu es o po e y and wellbeing ha can be compa ed
ac oss na ions wi h di e en le els o weal h and income. These a e o en
mul idimensional – cu ing ac oss di e en domains such as income, heal h,
educa ion and housing – o example he Uni ed Na ions Sus ainable
De elopmen Goals, o which Aus alia is a signa o y.11
1.5 Recen po e y esea ch in Aus alia
The e is now a g ea deal o consis ency in he use o ‘income-based
po e y’ measu es as de ined below, and b oad ag eemen ha hese
should be complemen ed by mo e di ec measu es o dep i a ion including
mul idimensional app oaches.
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
16
• A achmen 1 lis s examples o ecen income-based po e y esea ch in
Aus alia. Use o he 50% and 60% o median income po e y lines and he
‘modi ied OECD equi alence scale’ a e commonplace, along wi h ‘be o e and
a e -housing’ po e y h esholds ( hese concep s a e discussed la e ).
1.6 O icial po e y measu es in o he weal hy na ions
O e ime, many weal hy na ions and in luen ial in e na ional ins i u ions ha e
adop ed o icial po e y measu es, lea ing Aus alia a lagga d in his ield:
• A achmen 2 lis s some o hese measu es, which include he 50% o
median income po e y lines (used by he OECD) and he 60% o median
income po e y line (used by he Eu opean Commission) as well as
mul idimensional measu es.12 Go e nmen s in se e al compa able coun ies
ha e unde aken egula o icial s udies o he incidence o po e y and se
po e y educ ion a ge s o in o m and s ee public policy.
17
2.1 A de ini ion o po e y
The i s and i al s ep is o de ine wha we a e measu ing:
People a e in po e y when hei economic esou ces a e inadequa e o a ain a
socially accep able li ing s anda d.
13
While (as discussed below) i is an impe ec measu e o economic esou ces,
income si s a he cen e o mos po e y esea ch in Aus alia. As he epo o
he Commission o Inqui y in o Po e y a gued:
Income is undamen al o a pe son’s secu i y, wellbeing and independence.
I enables him [sic] o p o ide housing, educa ion, ood, anspo and o he
essen ials …. eedom o choice and eedom o pa icipa e in ac i i ies o his
choice.
14
To de e mine who li es in po e y we need o decide how o measu e economic
esou ces and se he esou ce h eshold(s) consis en wi h an accep able li ing
s anda d. Di e en heo e ical amewo ks ha e been used o in o m hese
decisions in po e y esea ch:
• In a u ili a ian amewo k, he me ic used o assess a minimum accep able
li ing s anda d is people’s consump ion possibili ies ( he se o ‘essen ial’
goods and se ices people can consume o mee hei basic needs and
pa icipa e in socie y).
• In Sen’s capabili ies amewo k wo me ics a e used: he esou ces equi ed
o gi e people he ‘capabili ies’ o lead a li e hey alue (no ing ha
capabili ies a e no di ec ly obse able) and he ‘ unc ionings’ o ou comes
achie ed in di e en domains o li e.15
While he unde lying heo e ical amewo ks a e di e en , in p ac ice he e is
much con e gence be ween he measu es o economic esou ces used in hese
wo amewo ks.
2.2 The ela ionship be ween income-based po e y measu es
and di ec measu es o inadequa e li ing s anda ds
We p opose a dual ack po e y measu emen amewo k, ou lined below, wi h
wo s eams o po e y esea ch based on he abo e de ini ion o po e y as
ha ing insu icien esou ces o a ain an accep able li ing s anda d:
1. Income-based po e y measu es, and
2. Di ec measu es o inadequa e li ing s anda ds.16
2. De ining po e y and i s ela ionship
wi h wide esea ch on social and
economic disad an age
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
18
To dis inguish be ween he abo e wo s eams o po e y esea ch,
• income-based measu es a e indi ec measu es o po e y, ocussing on he
p ima y
inpu
o po e y (lack o economic esou ces);
• di ec measu es ocus on he
ou comes and expe ience o po e y
(e.g.
inadequa e die , social isola ion, a s uggle o make ends mee ) and ac o s
beyond income ha con ibu e o po e y (such as limi ed o mal educa ion
o lack o paid employmen ).
Income-based po e y measu es
This s eam o po e y esea ch measu es people’s spending powe ( hei
abili y o buy essen ial goods and se ices) including:
• he adequacy o hei incomes ( ypically using
po e y lines
);17
• supplemen ed by b oade measu es o economic esou ces such as weal h,
access o a o dable housing and/o o he o ms o in-kind income; and
• alida ed by ‘budge s anda ds’ esea ch ha se s
minimum household
budge s
o achie e a socially accep able li ing s anda d.18
They a e he main ocus o his pape and a e discussed in de ail la e .
Di ec measu es o inadequa e li ing s anda ds
The h ee main s ands o his esea ch a e:
1. Measu es o mul iple disad an age ac oss a numbe o domains o li ing
s anda ds such as ma e ial dep i a ion o a Mul idimensional Po e y Index
In
ma e ial dep i a ion esea ch
, people a e asked whe he a lis o goods and
se ices (such as a decen and secu e home) a e essen ial, whe he hey ha e
1. Measu es o inadequa e economic esou ces
Income-based ‘po e y lines’, aking accoun o o he
economic esou ces (e.g. housing)
In o med and alida ed by:
Minimum s anda ds o consump ion o essen ials (including
Budge S anda ds)
2. Di ec measu es o an unaccep ably low li ing
s anda d
Measu es o he ou comes o inadequa e economic esou ces
ac oss di e en domains o wellbeing (including dep i a ion
o essen ials and mul idimensional po e y measu es)
All guided and in o med by:
Li ed expe ience o people di ec ly a ec ed
P oposed dual ack po e y measu emen amewo k
19
hem, and i no whe he his is because hey canno a o d hem (in which
case hey a e ‘dep i ed’ o an ‘essen ial’). A measu e o mul iple dep i a ion is
calcula ed based on he numbe o households dep i ed o a h eshold numbe
o essen ials.19
The
Mul idimensional Po e y Index
de eloped by P o esso Alki e and
colleagues a he Uni e si y o Ox o d se s h esholds o disad an age
wi hin each o se e al domains o wellbeing (such as employmen , heal h and
educa ion). They apply a se o s a is ical ules o combine measu es o he
ex en o disad an age ac oss mul iple domains in o a single index.20
Key bene i s o mul idimensional measu es include ha hey enable esea che s
and policymake s o cap u e he impac o po e y ac oss di e en domains
o wellbeing and o be e unde s and how disad an ages in di e en domains
in e ac :
• o example, he ela ionship be ween low educa ion, labou ma ke
ma ginalisa ion and po e y, o be ween po e y and poo heal h.
One isk is ha ma e ial dep i a ion, especially inadequa e income, may be
downplayed when measu ing mul idimensional disad an age, and in policy
esponses:
• This was a widesp ead conce n among po e y esea che s and public policy
ad oca es when he o me UK Go e nmen abandoned income-based child
po e y a ge s and eplaced hem wi h a di e en se o a ge s ocussed
on employmen pa icipa ion, educa ion, and pa en al esponsibili y.21
Mul idimensional app oaches ha e gene ally been de eloped as
complemen s
a he han
subs i u es
o income-based po e y measu es:
• Fo example, Alki e and colleagues ecommend ha na ional income
po e y measu es be de eloped alongside a wide mul idimensional index.22
2. Financial s ess
Financial s ess is sel - epo ed and e e s o a lack o esou ces o mee
cu en needs. The e is some o e lap be ween his and he b oade ma e ial
dep i a ion esea ch desc ibed abo e ( o example, he inabili y aise a ce ain
amoun o money in an eme gency is a a iable ha may be used in bo h,
howe e , he la e seeks consensus on i ems being conside ed essen ial).23
3. Repo ing people’s expe ience o li ing wi h low economic esou ces.
This esea ch ypically uses ocus g oups o su eys o people conside ed o be
a isk o po e y, o be e unde s and how li ing wi h e y limi ed esou ces is
expe ienced.24
The p os and cons o di ec and income-based po e y measu es
Di ec measu es o po e y ha e impo an ad an ages o e income-based
po e y lines:
• Ul ima ely, i is he ou comes o po e y ha ma e o people a ec ed and
o public policy.
• By cap u ing people’s li ing s anda ds ac oss a numbe o domains (e.g.
access o employmen , a o dable housing and heal h ca e) hey add dep h
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
20
and nuance o po e y measu emen ha can be linked o speci ic policy
ac ions.
• They posi ion he li ed expe ience o people di ec ly impac ed as cen al o
discussions on po e y measu emen .
Di ec measu es o po e y, howe e , ha e hei own limi a ions:
• They equi e esea che s o juggle a wide and mo e complex ange o
a iables.
• To cha ends in po e y using di ec measu es such as mul iple
dep i a ion, a di e se se o indica o s mus be con e ed in o an index.
While his may be mo e meaning ul in heo y han a po e y line based
on income alone, his equi es ca e ul expe judgemen – especially o e
which indica o s o measu e, wha h esholds o se , and whe he and
how o con e his o meaning ul income measu es o acili a e public
unde s anding.
• Di ec measu es equi e egula adjus men o accoun o changes in
communi y li ing s anda ds and expec a ions (such as g owing eliance on
in o ma ion echnology o mee basic needs). These adjus men s should be
made egula ly and g adually, o a oid conse a i e bias and ab up changes
in po e y (as measu ed) ha e lec changes in me hodology a he han
eal wo ld expe ience.
• Sel -assessed po e y is subjec o measu emen e o due, o example, o
di e ences in cul u al aming o po e y and he s igma ha is a ached o
iden i ying as ‘poo ’.
As in mos social esea ch, no single measu e gi es us he comple e pic u e o
who li es in po e y, wha causes i , how i is expe ienced, and he indi idual
and social impac s on people’s wellbeing. We need o iangula e be ween
income-based and di ec measu es.
• One op ion is o use di ec measu es o alida e income-based po e y lines,
o example by iden i ying income h esholds abo e which he incidence o
ma e ial dep i a ion ises sha ply.25
• Ano he op ion is o egula ly conduc esea ch using bo h income-based
and di ec app oaches and compa e he esul s. To he ex en ha he same
g oups a e iden i ied as a isk o po e y using bo h measu es, we can be
mo e con iden ha hey li e in po e y.26
2.3 B inging he oice o people a ec ed in o po e y
esea ch
To comp ehensi ely esea ch po e y we mus unde s and how people
expe ience i . The mos comp ehensi e po e y esea ch has been in o med by
eedback om people di ec ly a ec ed abou how hey came o li e in po e y,
i s e ec s on hei li es, and wha would li hem ou o i .27 In ecen yea s,
po e y esea che s ha e sough guidance om people di ec ly a ec ed o se
esea ch goals and ques ions and de elop he me hodology used.
Po e y is disempowe ing. I excludes people om he economic, social and
poli ical mains eam. Resea che s who ha e no expe ienced po e y di ec ly
21
o wo ked closely wi h people who ha e, canno assume hey unde s and i s
meaning o impac .
I is especially impo an o po e y esea che s o engage wi h and hea
he oices o people om communi ies and g oups ha a e also ma ginalised
in o he ways and/o a e likely o unde s and po e y om a di e en alue
sys em, including:
•
Fi s Na ions communi ies
(discussed below);
•
Child en and young people,
who expe ience po e y di e en ly o o he
amily membe s, e en hough decisions o classi y hem as ‘li ing in
po e y’ a e gene ally made on he basis o hei amily’s ci cums ances.
Since po e y can ha e li elong impac s on child en, esea che s should
unde s and how hey expe ience i ;
•
People wi h disabili ies;
and
•
People wi h di e se cul u al and linguis ic backg ounds.
28
Po e y in Fi s Na ions communi ies
To de ine and accu a ely measu e po e y in Fi s Na ions communi ies,
esea che s i s need o know how po e y is unde s ood and expe ienced by
people in hose communi ies. Fo example, while hey a e well awa e o hei
ela i e lack o ma e ial esou ces and essen ial se ices, ‘de ici aming’ o
Fi s Na ions communi ies is p oblema ic.29
Resea che s should collabo a e wi h Fi s Na ions communi ies and expe s
d awn om hose communi ies when de e mining he pu pose, design and
conduc o esea ch including he dissemina ion o esul s. The me hods used
and in e ac ions wi h Fi s Na ions people when conduc ing po e y esea ch
should be espec ul and cul u ally sa e. The esea ch and any associa ed public
policies should con ibu e o he be e men o peoples’ li es as de ined by he
communi ies hemsel es.
By aking his app oach, esea che s ha e ound ha po e y is unde s ood and
expe ienced di e en ly in Fi s Na ions communi ies, o example:
• p io i ies o wha cons i u es a ‘good li e’, including in many cases li ing
on coun y (whe e essen ials a e o en mo e cos ly) and gi ing p io i y o
sus aining cul u al and ce emonial p ac ices;
• kinship s uc u es and obliga ions, which ha e implica ions o he way in
which esou ces a e sha ed.
• Housing cos s pe pe son may be ela i ely low, bu homes a e o en o poo
quali y and o e c owded.30
This sugges s ha po e y should be de ined and measu ed di e en ly in Fi s
Na ions communi ies, while e aining su icien common g ound o acili a e
compa isons wi h li ing s anda ds in he b oade communi y ( o example o
measu e p og ess in Closing he Gap a ge s).31
• These measu es can only be de eloped by wo king wi h Fi s Na ions
communi ies and expe s om he ou se o de e mine he pu pose o he
esea ch, how po e y is de ined and measu ed, and he policy implica ions
o he esea ch.
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
22
23
The ollowing discussion ocuses on
me hodology o income-based measu es
o po e y
, wi h some e e ence o he
di ec measu es
o po e y iden i ied
ea lie .
3.1 Key equi emen s o accu a e and impac ul po e y
measu emen
The ollowing c i e ia a e p oposed o se ing income-based po e y measu es:
1.
Validi y and accu acy
:
especially he capaci y o iden i y he p opo ion o
people li ing in po e y, who hey a e, and he dep h o se e i y o po e y
among hose a ec ed;
2.
Timeliness:
o ack ends in po e y and hei possible causes;
3.
Simplici y
and ease o public unde s anding;
4.
Consis ency
o measu emen : o acili a e acking o long- e m ends and
a oid con usion among ollowe s o po e y esea ch;
5.
Policy ele ance
: o in o m analysis o he causes o po e y and policy
solu ions;
6.
Legi imacy
:
consis en wi h he expe ience o po e y among people
a ec ed and communi y iews o po e y.
Each o hese c i e ia is impo an , bo h o imp o e unde s anding o po e y
and o de elop policies o educe i . I is unlikely ha a single measu e will mee
all o hem.
3.2 Income: de ini ion and scope
De ini ion o income
In a ma ke -based economy such as Aus alia’s, income is he p ima y
de e minan o li ing s anda ds o mos people since i is he main de e minan
o hei spending powe :32
• Income a he han consump ion is mainly used in po e y measu emen
in weal hy coun ies since consump ion is a ec ed by people’s choices
– o example hey may choose o educe cu en consump ion o se
aside income o e i emen o o sa e o buy a home in a mo e desi able
neighbou hood.
Fo i s
Su ey o Income and Housing (SIH)
, he ABS de ines income as:
all cu en eceip s, whe he mone a y o in kind, ha a e ecei ed by he
household o by indi idual membe s o he household, and which a e a ailable
o , o in ended o suppo , cu en consump ion.
33
3. Measu ing income-based po e y
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
24
The componen s o cash income gene ally included in ABS income su eys and
mos po e y esea ch include p i a e income (p ima ily ea nings and income
om in es men s) oge he wi h social secu i y paymen s minus income ax.
• This is gene ally de ined as
disposable income.
Disposable income as de ined in ABS income su eys is na owe han
de ini ions o income commonly used in economic heo y, which also includes
inc eases in weal h (e.g. capi al gains on he alue o people’s homes) – he ole
o weal h in po e y measu emen is discussed below.34
Income acco ding o he abo e de ini ion is no limi ed o cash. Fo example,
some goods and se ices a e a ailable o people wi h low incomes ee o a
low cos h ough go e nmen p og ams. Whe he he ‘in kind’ alue o hese
goods and se ices should be conside ed in po e y measu emen is discussed
la e .
The pe iod o e which income is measu ed
The pe iod o e which income should be measu ed depends on he pu pose o
he esea ch:
• The ocus o income-based po e y esea ch is usually people’s
cu en
li ing s anda ds, gene ally unde s ood o e e o weekly o annual income.35
• Annual income is a mo e comp ehensi e and consis en measu e han
weekly income, since weekly incomes o en a y subs an ially especially
o people on he ma gins o he labou ma ke and hose wi h modes
in es men incomes.
• Howe e , annual measu es ha e hei own p oblems, including da a
a ailabili y. Fo example, he ABS no longe includes es ima es o annual
income in i s Su ey o Income and Housing; and su ey esponden s may
no accu a ely ecall hei incomes o e longe pe iods.
• The pe sis ence o po e y o e a numbe o yea s is an impo an opic
o po e y esea ch. Fo such analysis a longe e e ence pe iod may be
app op ia e (beyond simply es ima ing whe he people a e expe iencing
po e y o a ce ain numbe o yea s in succession) and mo e componen s
o weal h (e.g. he s ock o supe annua ion sa ings) may hen be ele an
(as discussed below).
Weal h
Income and weal h a e sepa a e bu ela ed. Weal h is a ‘s ock’ measu e ( he
asse s people hold a a poin in ime) and income is a ‘ low’ measu e:
• Income is equal o consump ion in a gi en pe iod (such as a week o a yea )
plus he change in weal h om he beginning o he end o ha pe iod.36
Al hough mos d awdowns o weal h a e excluded om disposable income as
measu ed in he ABS income su ey ( hough egula supe annua ion paymen s
a e included), he weal h a ailable o people o spend also a ec s hei cu en
spending powe :
• Depending on he o m ha weal h akes, people can d aw down hei s ock
o weal h o buy mo e goods and se ices.37
25
• A po e y h eshold based on a baske o commodi ies, such as hose
de eloped o budge s anda ds esea ch in Aus alia (discussed la e ); o
• A ela i e po e y line (such as 50% o median income) ha is ‘ ozen’ in
eal e ms o e a pe iod – an uneasy comp omise be ween ‘ ela i e’ and
‘absolu e’ app oaches.
Bo h app oaches s ill equi e checking om ime o ime on whe he he
po e y h eshold is consis en wi h cu en unde s andings o a minimum
accep able li ing s anda d:
• A po e y h eshold ha is ozen in eal e ms o many yea s will likely ail
o ake accoun o changing communi y s anda ds, o example widesp ead
up ake o mobile phones as an essen ial communica ion de ice.
• I is gene ally accep ed ha he baske o commodi ies used o budge
s anda ds esea ch should be upda ed app oxima ely e e y i e yea s. This
aises he possibili y ha he a e o po e y as measu ed using budge
s anda ds benchma ks may change ab up ly as he budge s a e upda ed,
complica ing any assessmen o ends in po e y.
50% and 60% o median income
The mos commonly used po e y h esholds in Aus alia (see A achmen 1)
a e based on a pe cen age o household median equi alised disposable income,
whe e:
• The po e y line o a single adul li ing alone is se a 50% o he median
income, consis en wi h he p ima y income-based po e y measu e used by
he OECD ( he e a e di e en po e y lines o di e en sized households, as
discussed la e ).
• In some cases (including in Po e y and Inequali y Pa ne ship po e y
esea ch), he highe Eu opean Commission h eshold o 60% o median
income is used in conjunc ion wi h he 50% h eshold o sensi i i y es ing
pu poses.54
The use o
median income
(as dis inc om o he poin s in he income
dis ibu ion) o benchma k po e y lines is consis en wi h he de ini ion o
po e y used in his pape , since we a e compa ing he incomes o people
a isk o po e y wi h a ‘middle’ income benchma k a he han low o high
incomes.
• By con as , he a e age o mean income measu e is mo e sensi i e o
changes in low and high incomes.
Since hese h esholds a e on he ace o i a bi a y, hey need
alida ion
o
assess whe he hey a e accep able o he public, whe he hey yield c edible
esul s bo h in agg ega e and when measu ing po e y a es among di e en
g oups ( aking in o accoun he esul s o complemen a y measu es such
as dep i a ion indica o s), and whe he hey eliably cap u e he impac s o
changes in policy and economic condi ions:
As indica ed in A achmen 1, he 50% o median income measu e is widely
used by Aus alian po e y esea che s, along wi h some go e nmen agencies
(e.g. he P oduc i i y Commission and Fai Wo k Commission):
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
32
• In 2024, his was app oxima ely $560 pe week o a single adul li ing
alone. I is di icul o con es he iew ha an income below his is
inadequa e. This po e y line si s somewha below he minimum household
budge s calcula ed in budge s anda ds esea ch.
• The 50% o median income measu e is easonably sensi i e o signi ican
changes in income suppo paymen le els and economic condi ions (such
as inc eases o educ ions in unemploymen ).
• When housing cos s a e aken in o accoun he p o ile o people li ing below
his po e y line is easonably consis en wi h ha o people who a e mos
likely o be dep i ed o essen ials o expe iencing inancial s ess.55
We use he 50% o median income benchma k as ou p ima y po e y
h eshold, so ha people wi h incomes below his le el a e es ima ed o be
li ing in po e y.
The e is a s ong case o supplemen ing his ugal measu e wi h a highe
po e y h eshold (such as 60% o median income) o sensi i i y es ing
pu poses, as i is unlikely ha people a e no a isk o po e y as soon as
hey ha e a dolla o income abo e 50% o median income (o any o he alid
po e y line).
Wi hin his wo- ie amewo k o po e y lines, people wi h incomes be ween
he 50% and 60% o median income po e y lines may be desc ibed as ‘a isk
o po e y’.56
One d awback o po e y h esholds linked o mo emen s in median o a e age
incomes is ha hey a e highly sensi i e o shi s in he business cycle such as
booms and ecessions.
• Acco ding o he ‘ ela i e’ app oach o po e y measu emen , a po e y line
should ise o all wi h shi s in o e all communi y li ing s anda ds.
• Howe e , ideally i should no change oo ab up ly wi h economic condi ions
– o example public expec a ions a ound minimum li ing s anda ds a e
gene ally sus ained (i.e. hey do no all sha ply) du ing ecessions.57
Hende son po e y lines
In he o iginal 1966 po e y su ey conduc ed by Hende son and colleagues,
he po e y line o a couple wi h wo child en was benchma ked o he ‘basic
wage’ plus child endowmen ( amily allowance) paymen s.58 This combina ion
e lec ed a long-es ablished Aus alian app oach o se ing minimum incomes:
• The ‘basic wage’ was o iginally in ended o mee a amily’s essen ial li ing
cos s and was la e supplemen ed by child endowmen .
A second po e y line was se a 120% o he abo e line:
• People li ing below his highe line we e desc ibed as ‘ a he poo ’ while
hose below he lowe line we e desc ibed as ‘ e y poo ’.
• A se o po e y lines o amilies o di e en sizes we e de i ed om hese
wo po e y lines, using an ‘equi alence scale’.
Sepa a e (highe ) po e y lines we e de eloped o households wi h a amily
33
membe pa icipa ing in he labou o ce, o accoun o addi ional cos s
associa ed wi h employmen o job sea ch.
A signi ican inno a ion was he calcula ion o a sepa a e se o ‘a e -housing
cos s’ po e y lines (as p e iously discussed), by deduc ing an es ima e
o ypical housing cos s om he abo e po e y h esholds (discussed in
mo e de ail la e ). These lowe po e y lines we e es ima es o he income
people needed o co e all cos s apa om housing. To assess whe he each
household was in po e y, i s housing cos s we e deduc ed om i s income
be o e compa ing i wi h he a e -housing cos s po e y line.
Despi e he ea ly connec ion wi h he Basic Wage, he link be ween he
Hende son po e y line and ac ual minimum wages was enuous om he
ou se and i was se e ed by he ime he Po e y Commission epo ed in 1975:
• Du ing he 1960s he ‘basic wage’ ell ou o use o wage ixa ion pu poses
and by 1966 ac ual minimum wages we e signi ican ly highe .59
• The Po e y Commission ins ead se wha became he benchma k
‘Hende son Po e y Line’ ( o a couple wi h wo child en) a 56.5% o
a e age ea nings.60
• In he 1980s when wo-income amilies became mo e common, he
Hende son Po e y Line was ins ead indexed o mo emen s in household
disposable income pe capi a.
A key ad an age o his app oach o indexa ion is ha he po e y line
mo es b oadly in line wi h household li ing s anda ds and can be upda ed
each qua e using Aus alian Na ional Accoun s da a.61 Howe e , i s o iginal
connec ion wi h Aus alian minimum income s anda ds has aded o e ime.
A u he limi a ion o he Hende son Po e y Line is ha i does no acili a e
in e na ional compa isons.
Budge s anda ds
As discussed p e iously, ano he way o benchma k incomes o a minimum
accep able li ing s anda d is o calcula e he minimum household budge s
equi ed by di e en ypes o amilies o pu chase essen ial goods and
se ices:62
• Aus alian budge s anda ds esea ch uses a combina ion o no ma i e
judgemen s (e.g. he minimum cos o a heal hy die ) and analysis o ac ual
spending pa e ns o households wi h low incomes.
• Focus g oups o people assessed as a isk o po e y may be used o
iden i y and alida e he lis o commodi ies included in each budge a ea o
imp o e unde s anding o how people wi h low incomes budge .
• The ou come is a se o minimum weekly expendi u es equi ed by di e en
amily ypes o mee hei needs. Toge he wi h a ma gin o sa ing, hese
can be con e ed in o disposable income h esholds o measu e po e y.
• A pa icula challenge in his ype o esea ch is he wide a ia ion in
housing cos s ac oss Aus alia.
The key ad an age o he budge s anda ds app oach is i s anspa ency. A
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
34
measu e g ounded in he ac ual expendi u e needs o amilies is likely o be
widely accep ed, especially since he budge s can be adjus ed o e lec bo h
expe judgemen s and public iews and s anda ds.
• Budge s anda ds can be used o alida e income-based po e y measu es
such as hose discussed abo e, including he equi alence scale used o
compa e he li ing s anda ds o di e en sized households.
• The main d awback is ha , unlike he abo e ela i e po e y lines, egula ,
subs an ial esea ch in es men is equi ed o upda e he budge s
app oxima ely e e y i e yea s o ensu e he budge s emain ele an o
changes in communi y expec a ions and he cos o di e en i ems.
A compa ison o di e en po e y lines
Figu e 1 below compa es di e en po e y lines used in Aus alia (in he case o
a single adul li ing alone) wi h an es ima ed minimum budge o a single adul
de i ed om budge s anda ds esea ch:
• The 50% o median income (‘be o e housing’) po e y line si s be ween he
Hende son (no in wo k o ce) and Hende son (in wo k o ce) po e y lines.
• The 50% o median income (‘a e -housing’) po e y line is lowe han he
equi alen ‘be o e housing’ po e y line since median housing cos s a e
deduc ed.
• The 60% o median income po e y line is highe han he abo e po e y
lines.
• The budge s anda d o a single adul is highe han all o he abo e
po e y lines, hough he di e ence would be less han indica ed he e i he
po e y lines we e indexed o wa d o 2024.
35
Figu e 1: Po e y Lines o a single adul compa ed wi h a minimum budge
om budge s anda ds esea ch ($pw in 2022-2024)
Sou ces: Naidoo Y, Wong M, Smy h C & Da idson P (2024),
Ma e ial dep i a ion in Aus alia: he essen ials
o li e.
ACOSS & UNSW Sydney; Melbou ne Ins i u e (2022),
Po e y Lines;
Naidoo Y, B adbu y B & Saw ika
P (2024),
Budge S anda ds o Child Suppo Resea ch, Final Repo ,
Social Policy Resea ch Cen e UNSW
Sydney.
No e: Po e y lines a e o 2022 while he budge s anda d is o 2024.
‘Be o e housing’ measu es can be compa ed wi h household disposable incomes while ‘a e -housing’
measu es can be compa ed wi h household incomes minus housing cos s.
The Hende son ‘in he wo k o ce’ po e y line applies o people who a e employed o unemployed.
The Budge S anda d is a minimum household budge o a single adul , unemployed and paying en equal o
he a e age o he lowes qua ile (25%) o Sydney, Melbou ne and B isbane en s.
The income uni
Fo he pu pose o po e y measu emen , indi iduals a e usually g ouped in o
households, and po e y h esholds a e adjus ed o ake accoun o he needs
o di e en sized households:63
• This assumes ha incomes and li ing expenses (e.g. en and ood) a e
sha ed among adul s in a household so ha e e yone has he same li ing
s anda d.
• Tha assump ion is no uni e sally alid – o example un ela ed indi iduals
sha ing accommoda ion may sha e housing cos s bu no o he expenses
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
36
- hough i is likely o be close o eali y han an assump ion ha incomes
and expenses a e no sha ed a all.
• In addi ion o ‘households’ he ABS also uses a ca ego y called he ‘income
uni ’, which includes immedia e amily membe s bu excludes o he adul s in
a household (e.g. adul child en o single people sha ing accommoda ion).
This allows esea che s o sepa a e he incomes o hose o he adul s om
ha o he es o he household o de e mine whe he hey a e li ing in
po e y. Howe e he ‘income uni ’ is no gene ally used in po e y esea ch
as i is simple o g oup people in o households, and ‘household’ is mo e
eadily unde s ood.
• A key p oblem using household income o alloca e indi iduals ac oss he
income dis ibu ion is ha his does no ake accoun o dispa i ies in
incomes
wi hin
households.
Adjus ing o household size (equi alisa ion)
To ake p ope accoun o economies o scale, household incomes a e
equi alised (adjus ed acco ding o household size). The e is no single ‘co ec ’
equi alisa ion scale ha can accoun o a ying needs ac oss di e se
households.
• The equi alence scale mos o en used in Aus alian po e y esea ch is
he ‘modi ied OECD equi alence scale’ de eloped by an ad iso y g oup
o po e y esea che s om weal hy na ions, which assigns a alue o
one o he i s adul , 0.5 o each addi ional adul and 0.3 o each child
unde 14 yea s ( hough in Aus alian esea ch 15 yea s is he h eshold
mos commonly used). This scale is used in he ABS
Su ey o Income and
Housing
.64
• The OECD also uses an equi alence scale based on he squa e oo o
household size, which is a mo e a bi a y app oach (e.g. i assumes a child
‘cos s’ he same as an adul ) adop ed o simplici y.
• The Hende son Po e y Lines use an equi alence scale based on a New Yo k
su ey o amily li ing cos s om he 1950s,65 which is unlikely o be ele an
o Aus alian household budge s oday.
The e is a case o using di e en equi alence scales o be o e and a e -
housing po e y lines (as discussed p e iously).
As men ioned ea lie , a di e en se o equi alence scales would be app op ia e
o measu e po e y in Fi s Na ions communi ies, which ha e di e en kinship
sys ems o he es o he communi y.66
Recommenda ions: Po e y h esholds
5. The household should be he uni o income-based po e y measu emen
and po e y lines should be adjus ed o household size.
• The base ‘equi alisa ion’ measu e o his pu pose is he ‘ e ised OECD
equi alence scale’.
6. The p ima y po e y h eshold should be 50% o median equi alen
household disposable income indica ing ha people wi h lowe incomes
a e li ing in po e y. This should be supplemen ed by a highe se o
po e y lines based on 60% o median income indica ing a ‘ isk o po e y’.
37
7. Budge S anda ds esea ch, upda ed a leas e e y i e yea s, should be
used o alida e income-based po e y h esholds.
8. As a complemen o he au oma ic and immedia e upda ing o po e y
h esholds o mo emen s in median incomes, al e na i e indexa ion
me hods should be de eloped and es ed:
• such as olling a e age measu es o educe ola ili y in pe iods o apid
g ow h o decline in incomes ac oss he communi y.
3.5 Da a gaps and eliabili y
Income-based po e y esea ch elies on accu a e, ele an and imely na ional
da a on he dis ibu ion o household incomes, supplemen ed by da a on he
dis ibu ion o weal h and consump ion. The main sou ces cu en ly a ailable o
esea che s a e:
• The Su ey o Income and Housing (SIH) and Household Expendi u e Su ey
(HES) om he ABS;
• The Melbou ne Ins i u e’s HILDA su ey; and
• Adminis a i e da a (e.g. ax and social secu i y) which is g adually being
adap ed o esea ch pu poses h ough he PLIDA da abase.
Timeliness
A majo p oblem o po e y esea che s wi h hese da a se s is a lack o
imeliness:
• The la es HES was conduc ed in 2015-16;
• The SIH is only conduc ed e e y wo yea s and elease o uni eco d da a is
o en delayed, meaning he e is a signi ican lag be ween da a collec ion and
elease;
• Da a on weal h and ma e ial dep i a ion is collec ed e e y 4 yea s and no in
e e y annual ound o he HILDA su ey.
This means ha unless esea che s use mic osimula ion echniques, hey may
be epo ing on a es o po e y and con ibu ing ac o s ha occu ed yea s
ago.
Da a gaps
Na ional income su eys o en ail o include o iden i y some g oups in he
communi y who a e a isk o po e y, such as:
• People in Fi s Na ions communi ies;
• People in ins i u ional ca e;
• People who a e homeless o insecu ely housed; and
• People who a e e ugees o empo a y mig an s.
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
38
Recommenda ions: Da a a ailabili y and eliabili y
9. The go e nmen should commi o p o iding he esou ces equi ed by
he ABS o unde ake comp ehensi e and egula household income and
weal h su eys as well as expendi u e su eys (o a he leas su eys
measu ing dep i a ion and inancial ha dship), a leas e e y wo yea s:
• The income and weal h su eys should ha e samples o su icien size
and di e si y o cap u e he main g oups a ec ed by po e y, include
de ailed da a on weal h and inancial ha dship, and be compa able
o e ime.
10. (a) To in o m he de elopmen o mul idimensional po e y measu es
and measu emen o po e y dynamics, he go e nmen should commi
o adequa ely unding he collec ion o longi udinal da a, such as he
Melbou ne Ins i u e’s HILDA su ey.
(b) I no collec ed in egula ABS su eys, dep i a ion da a should be
collec ed wi hin HILDA a leas e e y wo yea s, a he pe son le el.
(c) Go e nmen should con inue o acili a e he use o adminis a i e
da a ia PLIDA, including by imp o ing access o adminis a i e da a
on weal h, access o communi y se ices and he ci cums ances o Fi s
Na ions communi ies.
39
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
40
Income-based po e y esea ch should yield imely es ima es o he o e all
a e o po e y, i s incidence among di e en g oups including child en,
he dep h o po e y among hose impac ed, compa isons wi h benchma k
incomes (including social secu i y paymen s and minimum wages), in e na ional
compa isons, he pe sis ence o po e y, i s main causes and he impac o
public policies.
Headcoun measu es and po e y gaps
The
numbe and pe cen age o he popula ion in po e y
is o signi ican public
and public policy in e es , e en hough (and pe haps because) i akes a majo
change in economic condi ions o public policy (such as he COVID lockdowns
and ela ed income p o ec ions) o shi he dial much on hese agg ega e
measu es.67
While i a ac s less public a en ion, agg ega e measu es o po e y a e
incomple e wi hou a measu e o he a e age
dep h o po e y
- he po e y
gap - among people li ing below a po e y h eshold:
• One p oblem wi h a e age po e y gap measu es ( o people below he
po e y line) is ha hey a e impac ed by measu emen e o in cases whe e
su ey esponden s g ea ly unde es ima e hei income.
An income-based po e y measu e should ideally acili a e imely compa isons
o po e y a es in Aus alia and o he coun ies.
Popula ion g oups a ec ed
Timely e idence on he isk o po e y and p o ile o po e y among di e en
g oups in he popula ion is needed o assess ou ai ness as a na ion and o policy
de elopmen . This may include, o example, b eakdowns o po e y among:
• people o di e en ages, especially child en;
• people o di e en gende s;
• amily ype;
• people elying on di e en income sou ces, especially social secu i y
paymen s;
• labou o ce s a us;
• housing s a us;
• geog aphic loca ion;
• Fi s Na ions peoples;
• people wi h disabili y;
• mig an s, including mo e ecen a i als; and
• people wi h di e se e hnic and linguis ic backg ounds mo e b oadly.
4. Ou pu s o po e y esea ch
41
A achmen 2: Po e y measu es used
in o he weal hy na ions
Coun y Po e y measu es Income h esholds &
adjus men s
OECD % o median income 50% o median equi alen
household disposable income
[Squa e oo o household size o
modi ied OECD equi alence scale]
Eu opean Union % o median income
Se e e dep i a ion
Li ing in a ‘jobless’
household
60% o median equi alen
household disposable income
[modi ied OECD equi alence
scale]
Lacking key essen ials
Canada Minimum budge
Low income (% o
median income)
Ma ke Baske Measu e
Su icien income o a minimum
budge o a amily o ou
50% o median equi alen
household disposable income
Spends 20% mo e o income on
ood, shel e and clo hing han
a e age
Uni ed Kingdom* ‘Absolu e’ low income
‘Rela i e’ low income
Combined measu e o
ma e ial dep i a ion
(lack o essen ials) and
low income
60% o he median equi alised
household disposable income
ixed a 1998 alues
60% o he median equi alised
household disposable income
70% o median income and alling
below a ma e ial dep i a ion
h eshold
[modi ied OECD equi alence
scale]
New Zealand* % o median income
be o e-housing-cos s;
% o median income
a e -housing cos s;
Ma e ial dep i a ion
Po e y pe sis ence
50% o median equi alen
household disposable income
50% o median equi alen
household disposable income
(a e deduc ing housing cos s)
Lacking key essen ials
Du a ion o po e y
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
48
Coun y Po e y measu es Income h esholds &
adjus men s
I eland % o median income
Ma e ial dep i a ion
Consis en po e y
60% o median equi alen
household disposable income
Lacking key essen ials
Low income and ma e ial
dep i a ion combined
No es: * Fo child po e y only.
A o al o 43 (mainly low-income) coun ies use a Mul idimensional Po e y Index
while 34 Eu opean coun ies use Eu os a ’s A Risk o Po e y and Social Exclusion
(AROPE) measu e which includes ela i e income po e y, and measu es o employmen
pa icipa ion and ma e ial dep i a ion.74
49
1 Budge s anda ds a e minimum budge s o achie e a socially accep able li ing
s anda d. Ma e ial dep i a ion measu es he numbe o essen ial i ems ha no
one in Aus alia should go wi hou bu lack because hey canno a o d hem.
A Mul idimensional Po e y Index is a measu e o wellbeing ac oss a numbe o
dimensions such as housing heal h and employmen . All a e explained la e .
2 Da idson, P; B adbu y, B; and Wong, M (2022)
Po e y in Aus alia 2022: A
snapsho
Aus alian Council o Social Se ice (ACOSS) and UNSW Sydney;
Da idson, P; B adbu y, B; and Wong, M (2023),
Po e y in Aus alia 2023: Who
is a ec ed
Po e y and Inequali y Pa ne ship Repo no. 20. Aus alian Council
o Social Se ice and UNSW Sydney
3 Economic Inclusion Ad iso y Commi ee (2024),
Economic Inclusion Ad iso y
Commi ee 2024 epo o Go e nmen ,
Depa men o Social Se ices,
Canbe a; Uni ed Na ions (2024), Sus ainable De elopmen Goals,
End po e y
in all i s o ms e e ywhe e.
Webpage, accessed Decembe 2024; Aus alian
T easu y (2023), Measu ing wha ma e s s a emen Aus alian Go e nmen ,
Canbe a.
4 This de ini ion is d awn om he I ish go e nmen (ed.) (2007),
Na ional
ac ion plan o social inclusion 2007-2016: building an inclusi e socie y.
Dublin:
S a ione y O ice
5 Economic Inclusion Ad iso y Commi ee (2024) op ci ; Uni ed Na ions (2024),
op ci ; Aus alian T easu y (2023), op ci .
6 An example is he UN Sus ainable De elopmen Goal o hal e po e y as
measu ed na ionally by 2030.
7 See o example: Naidoo Y, Valen ine K & Adamson E (2022)
Aus alian
expe iences o po e y: isk p eca i y and unce ain y du ing COVID-19
.
Aus alian Council o Social Se ice (ACOSS) and UNSW Sydney; UNSW
Sydney; Bowman D, Po e D & Maba e M (2021) M
aking ends mee – os e ing
secu i y and digni y in ough imes
. B o he hood o S Lau ence. Melbou ne.
8 Expe G oup on Po e y S a is ics (2006),
Compendium o bes p ac ices in
po e y measu emen .
Rio de Janei o; Alki e S & San os M (2014) op ci .
9 Hende son R e al (1970),
People in po e y - a Melbou ne su ey
. Ins i u e o
Applied Economic and Social Resea ch, Uni e si y o Melbou ne; Commission
o Inqui y in o Po e y (1975),
Fi s main epo .
Commonweal h o Aus alia,
Melbou ne
10 Saunde s P (2015), ‘Closing he gap: he g owing di ide be ween po e y
esea ch and policy in Aus alia’.
Aus alian Jou nal o Social Issues
Vol. 50 No. 1,
pp. 13-35.
11 This equi es us, by 2030, o educe a leas by hal he p opo ion o men,
women and child en o all ages li ing in po e y in all i s dimensions acco ding
o na ional de ini ions, bu no na ional measu e has been adop ed in Aus alia o
ack p og ess owa ds his goal. See also; Alki e S & San os M (2014), op ci .
12 A o al o 43 (mainly low-income) coun ies use a Mul idimensional Po e y
Index while 34 Eu opean coun ies use Eu os a ’s A Risk o Po e y and Social
Exclusion (AROPE) measu e which includes ela i e income po e y, a measu e
o lack o employmen , and/o se e e ma e ial dep i a ion (Alki e S & Di ksen
J (2024),
Po e y in All i s Dimensions acco ding o Na ional De ini ions:
A b ie ing on SDG Indica o 1.2.2,
Uni e si y o Ox o d, OPHI B ie ing
58/2024.)
13 I ish go e nmen (2007) op ci .
Endno es
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
50
14 Commission o Inqui y in o Po e y (1975), op ci , p. 2.
15 Expe G oup on Po e y S a is ics (2006), op ci .; Alki e S & San os M (2014),
op ci ; Hun e B & Biddle N (2017),
Su ey Analysis o Indigenous Policy in
Aus alia: Social Science Pe spec i es
. Ch.10. ANU eP ess, Canbe a.
16 Go don D (2006), ‘The concep and measu emen o po e y’, in Pan azis C,
Go don D & Le i as R (2006)
Po e y and Social Exclusion in B i ain
, B is ol,
The Policy P ess.
17 These po e y h esholds a e usually se a he household le el, wi h indi iduals
de ined as li ing in po e y i hey li e in a household wi h economic esou ces
less han he h eshold ( he po e y line) o ha household ype. In o he
app oaches, such as he Mul i-dimensional Po e y Index, he indi idual is
he main uni o analysis. Alki e S, Kanaga a nam U & Suppa N (2021), T
he
Global Mul idimensional Po e y Index, Me hodological no e 5
1, Uni e si y o
Ox o d
18 Naidoo Y, B adbu y B & Saw ika P (2025), U
pda ed Budge S anda d Es ima es
o 2024, Final Repo
Social Policy Resea ch Cen e, UNSW Sydney
19 Naidoo, Y., Wong, M., Smy h, C. and Da idson, P (2024), M
a e ial dep i a ion
in Aus alia: he essen ials o li e
, Aus alian Council o Social Se ice (ACOSS)
and UNSW Sydney; Saunde s P, Naidoo Y & G i i hs M (2008), ‘Towa ds New
Indica o s o Disad an age: Dep i a ion and Social Exclusion in Aus alia’.
Aus alian Jou nal o Social Issues
Vol. 43 No. 2, pp. 175-194
20 Uni ed Na ions Depa men o Economic and Social A ai s (2024) op ci ; Alki e
S, Kanaga a nam U & Suppa N (2021), op ci .
21 S ewa K & Robe s N (2019), ‘Child Po e y Measu emen in he UK: Assessing
Suppo o he Downg ading o Income-Based Po e y Measu es’.
Social
Indica o s Resea ch
Vol. 142, pp. 523–542.
22 Alki e S, Kanaga a nam U & Suppa N (2021), op ci .
23 Financial s ess is sel - epo ed and e e s o a lack o esou ces o mee
cu en needs. The e is some o e lap be ween his and he b oade dep i a ion
esea ch desc ibed abo e ( o example, he inabili y aise a ce ain amoun o
money in an eme gency is a a iable ha may be used in bo h). Phillips B &
Na ayanan V (2021),
Financial S ess and Social Secu i y Se ings in Aus alia.
ANU Cen e o Social Resea ch and Me hods. Canbe a.
24 This in o ma ion can also be used o in o m o he ypes o po e y esea ch,
o example o se po e y h esholds o iden i y domains o li ing s anda ds
o inclusion in dep i a ion esea ch. See o example: Naidoo Y, Valen ine K &
Adamson E (2022), op ci ; Bowman D, Po e D & Maba e M (2021), op ci .
25 Townsend P (1979),
Po e y in he Uni ed Kingdom
. London, Allen Lane and
Penguin Books.
26 Saunde s P & Naidoo Y (2020), ‘The o e lap be ween income po e y and
ma e ial dep i a ion: sensi i i y e idence o Aus alia’.
Jou nal o Po e y and
Social Jus ice,
Vol. 28 No. 2, pp. 187–206.
27 Seebohm Rown ee B (2000),
Po e y A S udy o Town Li e,
Cen ennial Edi ion.
Policy P ess, B is ol.
28 Redmond G (2008),
Child en’s pe spec i es on economic ad e si y: A e iew
o he li e a u e. SPRC Resea ch Discussion Pape No. 149
. Aus alian Resea ch
Alliance o Child en and You h (ARACY), 2014. The Nes ac ion agenda:
Technical documen . ARACY, Canbe a. Lee Y (2011), ‘The E ec s o Pe sis en
Po e y on Child en’s Physical, Socio-emo ional, and Lea ning Ou comes.’
Child
indica o s esea ch
, Vol. 4, pp. 725–747.
51
29 Hun e B & Biddle N (2017), op ci ; Lahn J (2012), ‘Po e y, Wo k and Social
Ne wo ks: The Role o Social Capi al o Abo iginal People in U ban Aus alian
Locale’
U ban Policy and Resea ch
, Vol. 30, No. 3, pp. 293–308.
30 Hun e B (2012), ‘Is Indigenous po e y di e en om o he po e y?’ in Hun e
B & Biddle N (Edi o s),
Su ey Analysis o Indigenous Policy in Aus alia.
Cen e o Abo iginal Economic Policy Resea ch, Resea ch Monog aph No. 32,
Aus alian Na ional Uni e si y, Canbe a; Aus alian Ins i u e o Family S udies
(1993), ‘Abo iginal Aus alians and po e y, issues o measu emen ’
Family
Ma e s,
Augus 1993.
31 Closing he gap in pa ne ship (2020), C
losing he gap a ge s and
ou comes
32 In 2009, he ABS se ou o de elop a concep ual amewo k o ‘low
consump ion possibili ies’ based on income and weal h. The amewo k was
in ended o in o m he de elopmen o measu es o mo e accu a ely iden i y
Aus alian households ha ha e low consump ion possibili ies and a e a isk
o expe iencing economic ha dship. Consump ion possibili ies we e de ined
as people’s command o e esou ces ha can be used o ob ain goods and
se ices o sa is y hei needs and wan s. (ABS (2009),
Me hodological news
,
June 2009).
33 Aus alian Bu eau o S a is ics (2022), S
u ey o Income and Housing, Use
Guide
:
In his su ey income includes eceip s om: employee income (whe he
om an employe o own inco po a ed en e p ise), including wages and
sala ies and o he eceip s om employmen , income p o ided as pa o sala y
sac i ice and/o sala y package a angemen s and non-cash bene i s p o ided
by employe s, p o i /loss om own uninco po a ed business (including
pa ne ships), ne in es men income (in e es , en , di idends, oyal ies).
go e nmen pensions and allowances, p i a e ans e s (e.g. supe annua ion,
wo ke s’ compensa ion, income om annui ies, child suppo , and inancial
suppo ecei ed om amily membe s.
Household income excludes eceip s om: capi al ans e s such as inhe i ance,
lump-sum e i emen bene i s, li e insu ance claims (excep annui ies),
compensa ion (excep o o egone ea nings), loan epaymen s, lo e y and
o he gambling winnings, non-li e insu ance claims, eceip s ha esul om a
educ ion in ne wo h ( o example, sale o asse s, wi hd awals om sa ings,
and loans ob ained), holding gains/losses esul ing om changes in he alue o
inancial and non- inancial asse s and liabili ies ( o example, he alue o sha es
held).
34 Fo example, om his s andpoin sa ings (inc eases in weal h) should be
coun ed as pa o income bu no consump ion. So, employe con ibu ions
o supe annua ion should be coun ed as pa o income (bu is no in he ABS
Su ey o Income and Housing), and egula supe annua ion pensions should
no be coun ed as income (bu hey a e).
35 In he abo e de ini ion o income, ‘cu en eceip s’ gene ally e e o income
o e a pe iod be ween a week and a yea Uni ed Na ions Economic Commission
o Eu ope (2011),
Canbe a G oup Handbook on Household Income S a is ics.
New Yo k.
36 Oli e R (2018),
Backg ound pape – he concep o income
. New Zealand Tax
Wo king G oup, Welling on.
37 Access o asse s ha can be d awn down is aken accoun in de e mining
eligibili y o some social secu i y paymen s, h ough a ‘liquid asse s es ’,
hough his is con o e sial as i dep i es people o sa ings bu e s hey a e
likely o need in he nea u u e i ully elian on income suppo .
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
52
38 Naidoo Y, Wong M, Smy h C & Da idson P (2024), op ci .
39 The annui isa ion app oach is also used in social secu i y income es s h ough
he calcula ion o deemed a es o e u n om asse s. Rele an li e a u e:
Naidoo Y (2019), Compa ing he implica ions o expanded income-based
measu es o li ing s anda ds wi h an applica ion o olde Aus alians,
Jou nal
o Social Policy
, Vol. 48, No. 1, pp. 83–105; Naidoo Y (2017),
The s anda d o
li ing and well-being o indi iduals – A case s udy o olde Aus alians
. UNSW
Sydney; ABS (2021), Analy ical measu es o income, consump ion, sa ing
and weal h. Aus alian Sys em o Na ional Accoun s: Concep s, Sou ces
and Me hods
.
ABS, Canbe a. In a ecen s udy o income inequali y, he
P oduc i i y Commission used a measu e i called ‘weal h-adjus ed income’
which included he annui ised alue o household weal h. As he Commission
poin s ou , his app oach is mo e app op ia e o measu e income o e a li e ime
a he han a single yea . (P oduc i i y Commission (2024), A snapsho o
inequali y in Aus alia. Canbe a).
40 The ABS wa ns ha :
he e is an impo an deba e in he in e na ional na ional accoun s communi y
o e he alidi y o ea ing eal holding gains in he same manne as g oss
disposable income. The impac o eal holding gains on economic ac i i y may
no be equi alen o income ecei ed in cash o in kind. I a eal holding gain
acc ues due o an inc ease in he p ice o a pa icula asse , many agen s may
wish o ealise his gain. I hey a emp o cash ou a he same ime, he p ice
o he asse may all and he size o he ealised gain may be smalle han he
impu ed eal holding gain. In addi ion, he ealisa ion o a holding gain may
lead o he paymen o ax, which would educe he amoun o unds a ailable
o he asse holde . Thus, he measu es in oduced he e should no be seen
as eplacing o co ec ing he adi ional income and sa ing measu es in he
na ional accoun s; a he hey a e p o ided o gi e use s an al e na i e iew o
he a ailable in o ma ion.
ABS (2021), op ci .
41 Acco ding o he Canbe a G oup o in e na ional expe s on income
measu emen :
one way o ake accoun he impac on people’s spending powe is o:
‘annui ise he ne wo h held by he household and add his (no ional) annui y
o he low o income. Howe e , annui isa ion o ne wo h equi es ha a
numbe o alue judgemen s and assump ions be made in ela ion o, o
example, he pe iod o e which he ne wo h should be annui ised (li e o he
householde o spouse) and he a es o e u n o be used. Howe e , he e a e
also simple , bu less sophis ica ed, me hods a ailable o use dis ibu ional
in o ma ion o income and weal h oge he .’
(Uni ed Na ions Economic
Commission o Eu ope (2011), ibid, p.4)
42 This would be an age beyond which people can easonably be expec ed o
s a d awing down hei supe annua ion (and supe annua ion ules allow hem
o do so). This could, o example be 65 yea s o he age o eligibili y o Age
Pension (67 yea s).
43 Naidoo Y (2019), op ci ; Cigdem-Bay am M & Ve a-Tosca E (2024), op ci .
44 Cigdem-Bay am M & Ve a-Tosca E (2024), op ci .
45 Goods and se ices p oduced wi hin households include impu ed en s om
owne -occupied housing (which can be cap u ed indi ec ly h ough he ‘a e -
housing’ po e y measu es discussed la e ) and he alue o unpaid domes ic
labou which is o wide in e es om he pe spec i e o gende analysis.
46 ABS (2028),
Go e nmen Bene i s, Taxes and Household Income, Aus alia
me hodology
53
47 B adbu y B & Saunde s P (2021), ‘Housing cos s and po e y: analysing ecen
Aus alian ends.’
Jou nal o Housing and he Buil En i onmen
, 15 Sep embe
2021.
48 Impu ed en measu es do no ake di ec accoun o he capi al alue o he
home. See ABS (2023),
Su ey o Income and Housing, Use Guide, Aus alia
49 This is he main p oblem wi h po e y measu es based on ac ual expendi u e
a he han income o spending powe . One way o esol e his p oblem in
ega d o housing cos s would be o cap deduc ions om household incomes o
accoun o housing cos s, especially mo gage in e es paymen s. Mo e people
wi h la ge mo gage paymen s (who may well ace inancial ha dship bu a e
no li ing in po e y as commonly unde s ood) would be excluded om he
po e y coun .
50 This is he main p oblem wi h po e y measu es based on ac ual expendi u e
a he han income o spending powe . One way o esol e his p oblem in
ega d o housing cos s would be o cap deduc ions om household incomes o
accoun o housing cos s, especially mo gage in e es paymen s. Mo e people
wi h la ge mo gage paymen s (who may well ace inancial ha dship bu a e
no li ing in po e y as commonly unde s ood) would be excluded om he
po e y coun .
51 Mi a S e al (2017), ‘Ex a cos s o li ing wi h a disabili y: A e iew and agenda
o esea ch.’
Disabili y and Heal h Jou nal,
Volume 10 No 4, pp. 475-484. Vu B
(2020), ‘The cos s o disabili y in Aus alia: a hyb id panel-da a examina ion.’
Heal h Economics Re iew
, Vol 10 No 6.
52 Ross R & Whi e o d, P (1992), ‘Po e y in 1986: Abo iginal amilies wi h child en,’
Aus alian Jou nal o Social Issues
, Vol.27, No.2, May pp. 92-111.
53 Aguila R e al (2024),
Ma ch 2024 global po e y upda e om he Wo ld Bank.
Wo ld Bank G oup, Washing on
54 OECD (2008),
G owing unequal.
Pa is; Eu os a (2024),
Glossa y – A isk o
po e y o social exclusion.
Pa is
55 Naidoo Y, Wong M, Smy h C & Da idson P (2024), op ci ; Da idson P, B adbu y
B, & Wong M (2022) op ci ; Da idson P, B adbu y B, & Wong M (2023), op ci ;
Phillips B & Na ayanan V (2021), op ci .
56 The Eu opean Commission desc ibes he ci cums ances o people li ing below
i s 60% o median incomes in his way (Eu os a 2024, op ci ).
57 The UK Social Me ics Commission ha e p oposed an in e es ing me hod o
deal wi h his p oblem, by benchma king po e y lines o a olling h ee yea
a e age alue o median household incomes (Social Me ics Commission (2018),
A new measu e o po e y o he UK
. London. See also Co ak’s p oposal o a
i e-yea olling a e age measu e in Canada (Co ak M (2016),
He e’s a policy-
ele an way o se he po e y line.
)
58 Hende son R e al (1970), op ci . The basic wage, in oduced in 1907 in he
‘Ha es e Judgemen ’ case, was he i s minimum wage in Aus alia. I was
indexed qua e ly o he Commonweal h measu e o in la ion un il 1953, when
indexa ion was emo ed and eplaced wi h inc eases h ough Basic Wage
Inqui ies. (Hamil on, R (2017),
The His o y o he Aus alian Minimum Wage
, Fai
Wo k Commission).
59 Hende son’s o iginal po e y line o a single adul was a ound hal ha o a
‘ amily o ou ’, hence well below he basic wage. This e lec ed he iew a he
ime ha minimum wages should mee he cos s o a couple wi h child en, and
a oided any implica ion ha ( o elimina e po e y) income suppo paymen s
o a single adul should be equal o he minimum wage.
Po e y measu emen : A po e y and inequali y pa ne ship posi ion pape
54
60 This was based on he po e y line used in he 1966 su ey, indexed o wa d o
he 1970s.
61 Melbou ne Ins i u e (2024),
Po e y Lines
. Melbou ne.
62 Naidoo Y, B adbu y B & Saw ika P (2025), op ci ; Saunde s P, e al (1998),
De elopmen o indica i e budge s anda ds o Aus alia
. Social Policy
Resea ch Cen e UNSW; Bed o d M, B adbu y B & Naidoo Y (2023),
Budge
S anda ds o Low-Paid Families
. Repo p epa ed o he Fai Wo k
Commission, Melbou ne, Aus alia.
63 The indi idual a he han he household emains he uni o analysis, bu he
household income o he pe son (adjus ed o household needs) is used o
measu e hei li ing s anda d.
64 ABS (2022), op ci , glossa y
65
The 1954 ‘Family Budge S anda d’ p epa ed by he Budge S nada d Se ice
o he Communi y Council o G ea e New Yo k was used o adjus he po e y
line o di e en amily size and composi ion.
S an on, D (1980), ‘The Hende son
po e y line - A c i ique.’
Social Secu i y Jou nal, Decembe 1980,
p. 18.
66 Hun e B & Biddle N (2012), ‘Su ey Analysis o Indigenous Policy in Aus alia,
Social Science Pe spec i es’.
Resea ch Monog aph No. 32
, Cen e o Abo iginal
Economic Policy Resea ch, Aus alian Na ional Uni e si y, Canbe a.
67 Da idson P, (2022),
A ale o wo pandemics: COVID, inequali y and po e y in
2020 and 2021.
ACOSS/UNSW Sydney Po e y and Inequali y Pa ne ship, Build
Back Fai e Se ies, Repo No. 3; Sydney. No e ha in mos po e y esea ch,
his is exp essed as he p opo ion o indi iduals a he han households
in po e y, o be e ake accoun o he ci cums ances o people in la ge
households.
68 Fai Wo k Commission (2024), S
a is ical epo - Annual Wage Re iew 2023–
24
. Sydney
69 Ha me J (2009),
Pension Re iew Repo
. Depa men o Families, Housing,
Communi y Se ices and Indigenous A ai s, Canbe a.
70 Economic Inclusion Ad iso y Commi ee (2024),
2024 Repo o Go e nmen
.
Canbe a
71 T easu y (2024), op ci .
72 Ve a-Toscano E & Wilkins R (2022),
The Dynamics o Income Po e y in
Aus alia: E idence om he HILDA Su ey, 2001 o 2019
. Melbou ne Ins i u e.
Cobb-Cla k D (2019),
In e gene a ional T ansmission o Disad an age in
Aus alia.
Li e Cou se Cen e Wo king Pape No 2019-19, School o Economics,
Uni e si y o Sydney.
73 See o example: Naidoo Y, Valen ine K & Adamson E (2022), op ci ; UNSW
Sydney; Bowman D, Po e D & Maba e M (2021),
Making ends mee – os e ing
secu i y and digni y in ough imes
. B o he hood o S Lau ence. Melbou ne.
74 Alki e S & Di ksen J (2024), op ci .
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