ABS: Household incomes recovering after global financial crisis

Today's release from the ABS revealed some interesting trends on household income growth.

"Income in low and middle income households grew by over four per cent between 2009-10 and 2011-12, according to a report released today by the Australian Bureau of Statistics (ABS).

"Growth in household income stalled after the global financial crisis," said Stephanie Cornes, Director of Household Economic Resource Surveys at the ABS, "but figures from 2011-12 released today show that household incomes are recovering."

"Low income households have seen an increase of five per cent from 2009-10, and middle income households have seen an increase of four per cent. High income households have been fairly stable, with no significant growth."

"Overall, the share of total household income received by low and middle income households has grown since 2007-08, while the share received by high income households has fallen. These results are reflected in more equal incomes across Australian households since 2007-08," Ms Cornes said."

The ABS found that real equivalised disposable income increased by 49% between 1994/5 and 2011/12, despite a break in the trend during the global financial crisis.

S1 CHANGES IN MEAN REAL EQUIVALISED DISPOSABLE HOUSEHOLD INCOME

Source: ABS

Notably, disposable income was very high in some states, but low in South Australia and Tasmania.