An attempt by the Australian Bureau of Statistics (ABS) to reduce costs led to the abrupt cancellation of a crucial survey intended to shed light on how Australian households are coping with the ongoing cost-of-living crisis. The cancellation has sparked widespread concern over the lack of data on two of the nation’s most pressing issues: income inequality and housing affordability.
According to newly released ABS briefing documents addressed to Andrew Leigh, the Assistant Minister for Treasury, the agency’s efforts to salvage its anticipated survey on income and housing for 2023-24 ultimately failed. This survey, which was scheduled for release in July, was meant to provide comprehensive statistics on household income, wealth, and housing costs, but is now postponed until 2025-26, with data expected in mid-2027.
Impact of the Survey’s Cancellation
The survey, last completed for the 2019-20 financial year, was set to involve around 30,000 participants and is considered the only source of detailed statistics on these critical issues. The delay has raised significant concerns among experts and policymakers alike.
Ben Phillips, an associate professor in economics and public policy at the Australian National University (ANU), expressed dismay over the situation. “Everyone is a bit shocked. The ABS have not done a good job on this at all,” he stated. Phillips emphasized the importance of the survey, noting, “We are missing a lot of good data on two of the biggest issues facing the country.” He highlighted that while aggregate-level data exists, it fails to capture the nuanced impacts on specific populations, such as low-income households and single parents.
Challenges Facing Statistical Bodies
The briefing document, released on Monday following a request by independent senator Fatima Payman, outlines the challenges faced by statistical bodies worldwide. These organizations are finding it increasingly difficult and costly to conduct surveys among their citizens. The ABS had attempted to innovate its approach for the 2023-24 survey to improve response rates and reduce costs.
These innovations included encouraging Australians to complete the survey online rather than through in-person visits and attempting to streamline survey questions by using administrative data, such as superannuation balances. However, the rushed design process led to significant issues. Forms were distributed six months after the survey’s initiation in December 2022, rather than the typical 18 months, which would have allowed for more thorough testing.
Complications and Consequences
The ABS faced additional complications with the “extraction” process for the administrative data intended to replace some survey questions. This process proved more complex than anticipated and was only resolved at the end of the previous year. The streamlined survey design allowed respondents to skip crucial questions, including those about their mortgages.
By early 2025, during the “weighting” process to ensure the survey’s national representativeness, it became evident that the sample was biased towards poorer households. The ABS concluded that the results were not credible, as they suggested household incomes in 2023-24 were lower than in 2019-20, a finding inconsistent with other data sources.
Statistical bodies around the world are finding it harder and more costly to survey their citizens.
Looking Ahead
The cancellation of the survey has significant implications for policymakers and researchers who rely on this data to inform decisions and craft policies addressing income inequality and housing issues. The ABS has announced plans to publish a review of the survey process on Friday, which may offer insights into the challenges and potential solutions moving forward.
As the nation grapples with these pressing issues, the absence of up-to-date data complicates efforts to address them effectively. The delay underscores the need for robust and reliable data collection methods to ensure policymakers have the information necessary to support Australia’s most vulnerable populations.
