Income quintiles
A comparison measurement approach whereby a household’s income is ranked against the distribution of all household income in Australia. The approach divides Australia’s households (i.e. not population) into five equal groups or quintiles, each comprising 20 per cent of the number of all households, based on their income. The income quintiles assessment leads to the recognition of the following categories:
- very low income households – 0% to 20% of income earners
- low income households – 20% to 40% of income earners
- moderate income households – 40% to 60% of income earners
- high income households – 60% to 80% of income earners
- very high income households – highest 20% of income earners.