More details:
The purpose of an economy is to provide needed or wanted goods and services to a nation’s population. In Australia in 2014, this means 24 million people in 9.3 million households.
Only a few centuries ago, most goods and services were produced on a do-it-yourself (DIY) basis within households. But with outsourcing, we have created over 500 classes of industry to do it for us, and work in one of them to earn the money to buy these goods and services. Nowadays, of all the goods and services produced (our GDP) and imported – totalling $1.9 trillion – some 59% goes to households. A further 22% goes into capital expenditure for the future and 19% goes to other countries as our exports. So households are the biggest market by far: no surprise there.
But the statistics on household finances do provide some surprises, whether expressed as averages or ranges. Averages are always just that, and they can disguise the often polarised distribution of all sorts of things important in an economy and society. And yet, both the averages and the distributions tell us a lot when it comes to household incomes and how we spend them, our wealth and our taxes.
Starting with average household income and spending, the first chart shows the picture in 2014. The first surprise is the average income, a staggering $145,400 across the nation’s 9.3 million households.
The total income across all households is around $1.4 trillion, which is made up of wages, mixed incomes (of unincorporated businesses), investment incomes, welfare payments, transfer payments, other incomes and the imputed rent value of home ownership. We will return later to look at the polarised distribution of these incomes between the rich and poor.
Savings, including superannuation, are currently around 7% of income. Savings were negative through the middle of the last decade, well before the impact of the global financial crisis at the tail end of the decade, which was a wake-up call to recalcitrant and spendthrift households. Taxes are a surprisingly modest one-seventh of gross incomes, as is rent (including actual rent and the imputed rent of home owners). In the case of imputed rent, the Australian Bureau of Statistics treats home owners as investors that ‘earn’ and ‘pay’ a rent to themselves.
https://www.ibisworld.com.au/media/2014/09/10/household-finances/