Interpretation Notes
Deciles are based on household equivalised disposable income minus GST.
Income is equivalised using the Jensen 88 equivalisation scale
Disposable income is total income after (gross) tax and tax credits.
Gross income includes income from all sources including benefits and transfers but before taxes are removed.
Gross Tax includes personal income tax and GST (unless stated otherwise). It does not include excise or other taxes.
Net Tax is Gross Tax minus benefits (including NZ Super and Accommodation Supplement) and tax credits such as Working for Families
Decile 1 includes households with negative reported self-employment income and households living on savings
GST is calculated based on household expenditure on goods and services that incur GST as reported in HES
5 comments:
No representation without taxation seems like a better and better idea!
I would imagine that this means that people on the government pension are paying tax. Is that correct?
Wouldn't it depend on whether they have other sources of income? If they were dependent solely on Super (what I understand you mean by "government pension") then they will be in the lowest deciles and have negative net tax.
Lindsay
Are you sure they are in the bottom deciles? My understanding is that the reason why the "poverty rate" for the elderly is so low is that National superannuation on its own is just enough to get you above the magic threshold of 60% of the median income.
If that is the case you would expect the elderly to be congregated in the 6th percentile.
I'll blog a chart for you which addresses this.
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