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Glossary and references

Glossary

Current income

Current (or recent) income is timely and it generally relates directly to the demographic and social characteristics of the individual, family or household at the time of the collection. A disadvantage is that current income may not be a true reflection of the financial resources usually available to the individual, family or household providing income information. This can occur, for example, where an individual suffers a short period of unemployment affecting individual, family or household income.

Contingent income

Contingent income is income that depends on the unknown outcome of a course of action, for example, real estate commissions that are contingent on the sale being completed. It is excluded from collection of annual gross income for income bands.

Extended family

An extended family is a group of related persons who usually reside together and consists of:

  • a family nucleus and one or more other related persons; or
  • two or more related family nuclei, with or without other related persons.

Household

One person who usually resides alone or two or more people who usually reside together and share facilities (such as eating facilities, cooking facilities, bathroom and toilet facilities, a living area).

Irregular income

Irregular income is received from inheritances, matrimonial settlements, lump sum life insurance pay outs, lump sum bursaries and prizes, and gifts of money from other New Zealand households. Also included are lottery and gambling winnings, unless these were received as part of a person's occupation (registered as a professional gambler with lnland Revenue), when they would be classed as regular income.

Regular income

(Source: 2006 Census definitions)

Total personal income
Information on total personal income received is collected from individuals in the 2006 census. It represents the before-tax income for the respondent in the 12 months ending 31 March 2006. To overcome collection difficulties, total personal income is collected as an income range rather than an actual dollar income.

Total personal income is aggregated to form a number of other income outputs including:

  • grouped total personal income
  • total household income
  • grouped total household income
  • total family income
  • grouped total family income
  • combined parental income for couples with child(ren)
  • grouped combined parental income for couples with child(ren)
  • total extended family income
  • grouped total extended family income.

Sources of personal income
This variable identifies the various sources from which an individual aged 15 years and over received their total personal income in the 12 months ending 31 March 2006.

In the census, it is generally only realistic to collect information on money income. This is income that the individual respondent can normally recall or can readily retrieve from their financial records. Money income is money flow from the deployment of one's labour, entrepreneurial skills and assets, and transfers received. The concept of money income therefore relies on identifying the sources from which money income is derived.

Excluded are income in kind, imputed income, unrealised income, and contingent income. Contingent income is that dependent on the unknown income of a course of action, for example, to sue. Money received by borrowing, making withdrawals from savings and receiving repayments of loan principal are excluded. Tax credits and reimbursements of expenses are also excluded.

Regular income

(Source: Household Economic Survey, other surveys may vary)

Regular income is received from the following sources.

Wages and salaries
Income received from all current and previous salary and wages held over the reference period, and any job related bonuses, commissions, redundancies or other taxable income such as honoraria or directors fees.

Self-employment income
Net profit or loss received from all current and previous self-employment over the reference period, including drawings (cash or goods the respondent takes out of the business instead of receiving a 'wage').

Investment income
Net profit or loss received from investments such as rent, Māori land or other leased land, dividends from New Zealand companies, royalties, interest from the following: banks, other financial institutions, bonds, stocks, money market funds, debentures or securities.

Private superannuation income
Includes income received from both job-related superannuation schemes and other private schemes.

New Zealand Superannuation and war pensions
In addition to New Zealand Superannuation, this category also includes Veterans, War Disablement and Surviving Spouse pensions.

Other government benefits
All family assistance payments, such as those receiving: the Working for Families package; main benefits (e.g. unemployment); sickness, domestic purposes and invalids benefits; student allowances; emergency benefits; and supplements.

Other sources of regular and recurring income
Includes income received from Accident Compensation Corporation and private compensation providers, trusts, annuities, alimony, educational scholarships, and income protection insurance.

Total income

(Source: Census 2006)

Total personal income
This represents the before-tax income for the respondent in the 12 months ended 31 March 2006. To overcome collection difficulties, total personal income is collected as an income range rather than an actual dollar income. Total personal income is also aggregated to form the following income outputs: total household income; total family income; combined parental income for couples with child(ren); total extended family income.

Total extended family income
Total extended family income is derived by aggregating the total personal income of all members aged 15 and over of the extended family.

Total family income
Total family income is derived by aggregating the total personal income of all members aged 15 and over of the family nucleus.

Total household income
Total household income is derived by aggregating the total personal income of all members aged 15 and over of the household.

Combined parental income for couples with child(ren)
Combined parental income for couples with child(ren) is derived by aggregating the total income for the couple.

Unrealised income
The increased market value of an asset that is still being held compared with its cost of acquisition. For example, deferred compensation where an employee chooses to forgo their wages in exchange for compensation at a future date.

Wages and salaries
See 'Regular payments'

Residual categories

Don’t know

Use of this category is discretionary. The use of a category capturing don't know responses is most applicable to household surveys where don't know may be a legitimate response to certain questions.

Refused to answer

This category is only used when it is known that the respondent has purposefully chosen not to respond to the question. Use of this residual category in processing is optional. Its use is most applicable in face-to-face or telephone interviews, but may be used in self-completed questionnaires if the respondent has clearly indicated they refuse or object to answering the question.

Response unidentifiable

This category is used when there is a response given, but:

  • the response is illegible, or
  • it is unclear what the meaning or intent of the response is – this most commonly occurs when the response being classified contains insufficient detail, is ambiguous or is vague, or
  • the response is contradictory, for example, both the yes and no tick boxes have been ticked, or
  • the response is clear and seemingly within the scope of the classification, but can not be coded because no suitable option (particularly other residual category options such as 'not elsewhere classified' or 'not further defined') exists in the classification or codefile.

Response outside scope

This category is used for responses that are positively identified (that is, the meaning and the intent are clear) but which clearly fall outside the scope of the classification/topic as defined in the standard.

Not stated

This category is only used where a respondent has not given any response to the question asked, that is, it is solely for non-response.

References

Canberra Group report (2000).

System of National Accounts (1993). UN, Eurostat.

Statistics New Zealand. DRAFT Statistical Standard for Personal Income (1999). Unpublished. Not endorsed as a standard.

The Statistical Standard for Personal Money Income Statistics from Household collections 1994.1

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