Economic independence
Limited employment opportunities affect a person’s finances. Strengthening the financial independence of people with disability by ensuring they have an adequate income is critical to providing them with increased financial security, economic independence and an appropriate standard of living. An adequate income gives people more choice and control over their lives, enabling their participation in community life. The income support system provides an important safety net for people with disability who are unable to work or cannot find employment (Australia’s Disability Strategy 2021–2031).
Median gross income gap
Looking at a person’s income level can provide insight into potential inequality in standard of living (AIHW 2022).
This measure reports the difference in the median weekly gross income between people with disability and people without disability who are of working age (15–64 years). The desired population outcome for this measure is to see an increase in people with disability experiencing economic independence.
Population measure: Gap in median gross income for a person with disability aged 15–64 years compared with people without disability
Desired outcome: Reduction in the median income gap
Data source: ABS SDAC
Results at baseline: 2018
- In 2018, the median gross income for people with disability aged 15–64 was $505, just under half the median gross income for people without disability ($1016); a gap of $511.
- In 2015, the median gross income for people with disability aged 15–64 was also just under half that for people without disability ($465 and $950, respectively); a gap of $485 (Figure 2.9). There was no significant change in the gap between 2015 and 2018.
- Severity of disability was associated with the gap between people with and without disability. In 2018, the gap between people with severe or profound disability and people without disability ($586) was greater than the gap between people with other disability and people without disability ($416).
- For males, the gap ($683) between those with and without disability was almost 90% higher than the equivalent gap for females ($363).
- The gap was greatest among the 45–64 age group ($651), followed by those aged 25–44 ($506). The gap was considerably lower among young people aged 15–24 ($87).
Latest results
Updated data are not yet available for this measure. New data from the 2022 ABS SDAC are expected to be available in the first half of 2024 and will be included in the 2024 annual report.
Things to consider when interpreting results
- Data presented for 2015 have not been adjusted for inflation; this affects an ability to make a true comparison between the 2 time periods.
- Total weekly income is calculated excluding people whose income was ‘Not stated’, ‘Not applicable’, ‘Amount not known, or people who reported no sources of income.
- While most people with disability aged 15–64 are just as likely as those without disability to have some form of income, for people with disability, particularly for those with severe or profound disability, this income is more likely to come primarily from a government payment rather than from salary or wages (AIHW 2022). This would be a contributing factor to the difference in gross median income.
Figure 2.9: Median gross income for people with disability aged 15–64 compared with people without disability, 2015 and 2018
These data show the median gross income for people with disability aged 15–64 years compared with people without disability. Data from 2015 and 2018 are used. In 2018, the disability income gap was $511 per week, compared with $485 per week in 2015.
Year | With disability | 95% Confidence Interval | Without disability | 95% Confidence Interval | Gap | 95% Confidence Interval |
---|---|---|---|---|---|---|
2015 | $465 | ($450-$480) | $950 | ($922-$959) | $485 | ($462-$508) |
2018 | $505 | ($499-$534) | $1,016 | ($1,000-$1,050) | $511 | ($481-$541) |
Notes:
- Total personal weekly income. Excludes people whose income was 'Not stated', 'Not applicable', 'Amount not known', and people who reported no sources of income. The income gap is calculated by subtracting median income of people with disability from median income of people without disability.
- Restricted to people aged 15–64 living in households.
Sources:
- ABS (Australian Bureau of Statistics) 2019. Microdata: Survey of Disability, Ageing and Carers, Australia, 2018, ABS cat. no. 4430.0.30.002, ABS, AIHW analysis of detailed microdata in DataLab, accessed 11 August 2022.
- ABS 2016. Microdata: Survey of Disability, Ageing and Carers, Australia, 2015, ABS cat. no. 4430.0.30.002, ABS, AIHW analysis of detailed microdata in DataLab, accessed 11 August 2022.
Source:
Australian Bureau of Statistics – Survey of Disability, Ageing and Carers (SDAC) | Data source overview
For the latest data and breakdowns of the data, see Australia’s Disability Strategy Outcomes Framework | Median gross income gap.
References
AIHW (2022) ‘Income’, People with disability in Australia, AIHW, Australian Government, accessed 18 August 2022.
Australia’s Disability Strategy 2021–2031 (2021), Department of Social Services, Australian Government, accessed 16 June 2022.