Ex-serving ADF members' income and sources of income

This section explores personal income of ex-serving ADF members with at least one day of service since 1 January 2001, using personal income tax (PIT) data from 2013–14 to 2017–18.

Because PIT data in MADIP only records taxable income, analyses on total personal income or loss and government pensions and allowances sections in this report do not include some tax-free DVA pensions and benefits (for example, invalidity service pension where the veteran is aged below age-pension age and some income support supplement and veteran payment) (ATO 2022a).

The term ‘total personal income or loss’, as used in this section is defined in the relevant Glossary entry.

For a snapshot of total personal income including taxed and tax-free amount reported in Census 2016, refer to the previous AIHW report: Understanding the wellbeing characteristics of ex-serving ADF members published 1 September 2022 (AIHW 2022).

For more information on the ex-serving ADF members population in scope for the analysis of income, see Included in this analysis.

Ex-serving ADF members’ total personal income or loss was higher than the Australian population

• In 2017–18, ex-serving ADF members had a higher total personal income or loss compared with the Australian population aged 17 years and over.
  • The median total personal income or loss of ex-serving ADF members was $73,900, whereas the median total personal income or loss of the Australian population was $48,600.
  • Similarly, the median total personal incomes or losses for ex-serving ADF males ($77,700) and females ($58,200) were higher compared with Australian males ($57,600) and females ($41,200).
• When comparing between ex-serving ADF members and the Australian population, higher total personal income or loss was defined as a total personal income or loss in 2017–18 of $48,600 or more, which is above the Australian population median.
  • After adjusting for the effects of sex, age, and geographic location (using binomial logistic regression modelling), the odds of having higher total personal income or loss were 78% higher (95% CI 75% to 81%) for ex-serving ADF members than the Australian population.
• Ex-serving ADF males and females had consistently higher median total personal incomes or losses than Australian males and females, with males’ median total personal incomes or losses being higher than females’ median total personal incomes or losses across the 2013–14 to 2017–18 financial years.

Higher ranks and serving for longer were associated with higher total personal income or loss

• When comparing among ex-serving ADF-members, higher total personal income or loss was defined as a total personal income or loss in 2017–18 of $73,900 or more, which is above the ex-serving ADF members’ median.
  • Binomial logistic regression modelling was conducted to investigate whether there are any service characteristics associated with higher total personal income or loss among ex-serving ADF members. When adjusting for other demographic and service characteristics in the model, the odds of having higher total personal income or loss in 2017–18 were:
    • 62% lower (95% CI 60% to 64%) for those who served less than one year than those who served 10 years or more.
    • 58% higher (95% CI 34% to 85%) among females who separated as Commissioned Officers who separated involuntarily due to medical reasons than those who separated voluntarily.
    • 37% lower (95% CI 34% to 41%) among males who separated as Other ranks who separated involuntary due to medical reasons than those who separated voluntarily.
    • higher for those aged 35 to 54 years than those aged 25 to 34 years, but lower for those aged 55 and over than those aged 25 to 34 years.
    • 12% lower (95% CI 8% to 16%) for those who served in the Navy than those who served in the Army.
• Ex-serving ADF members with high median total personal income or loss included those who:
  • were 35–44 years ($89,200 for males and $62,700 for females) and 45–55 years ($94,200 for males and $67,900 for females)
  • lived in Australian Capital Territory ($96,700 for males and $79,300 for females), Northern Territory ($90,900 for males and $65,400 for females) and Western Australia ($92,600 for males only)
  • lived in a major city in Australia ($81,100 for males and $61,800 for females)
  • were Commissioned Officers ($92,600 for males and $76,500 for females)
  • had length of service of 10 years of more ($87,100 for males and $65,000 for females).
• Ex-serving ADF members with low median total personal income or loss included those who:
  • were 17–24 years ($44,500 for males and $38,900 for females) and 65 years and over ($47,600 for males and $37,800 for females).
  • separated as Other ranks ($75,600 for males and $55,400 for females).
  • had length of service of less than one year ($60,100 for males and $46,500 for females).
• Male ex-serving ADF members also had lower median total personal incomes or losses if they separated involuntarily, for medical reasons ($70,600) or other involuntary reasons ($70,000) than those who separated voluntarily ($81,200).

The data visualisation (Figure 4) presents data on modelling ex-serving ADF members having total personal income or loss of $73,900 or more in 2017–18 by demographic and service characteristics. Select the Multivariate button to view difference between sub-population groups after adjusting for other factors in the model and use the Univariate button to view unadjusted results. In the Multivariate tab, data for some characteristics are presented in Figure 5 to demonstrate further the difference between smaller sub-population groups.

Figure 4: Univariate and multivariate logistic regression models of having total income or loss above the median for ex-serving ADF members, PIT 2017–18, PMKeyS

Figure 5: Multivariate logistic regression models of having total income or loss above the median for ex-serving ADF members for variables with significant interactions, PIT 2017–18, PMKeyS

The interactive data visualisation (Figure 6) presents data on the median total personal income or loss of ex-serving ADF members in 2017–18 by service characteristics, in comparison with the Australian population by demographic characteristics.

Figure 6: Median of total income or loss for ex-serving ADF members and Australian population, by demographic and service-related characteristics, PIT 2017–18, PMKeyS

Included in this analysis

• For the 2017–18 financial year, the analysis includes ADF members who had at least one day of service since 1 January 2001 and who were ex-serving before 1 July 2017 and were alive on 30 June 2018. This study population was designed to ensure the ADF members were ex-serving and experienced the whole financial year for income purposes.
• Of these 107,000 ex-serving ADF members, 85% linked to the 2017–18 PIT data in MADIP which resulted in an in-scope population of 90,400 ex-serving ADF members aged 17 years and over.
• Further information on population scope, analysis period, methodology can be found in the Technical notes.
• Excel source data tables are available in Data.