Application Exercise 10q
Situation | Income/ wealth source | Qu | Explanation |
James Poker receives annual dividends after investing the vast sum of money received in his rich father’s will. | Inheritance | 5 | Will be in the highest Q because James’ rich father left him a vast sum of money |
Barry, an engineer, accepts a job in the mining industry developing technology to remotely control trains and trucks | Wages or Salary | 4-5 | Likely to be in one of the two highest Qs because he is earning a salary in a highly sought-after profession (IT) |
Cathy works in a well-known fashion retail outlet earning the minimum wage | Wages | 2 | Likely to be in Q2 because she is being paid the lowest possible working wage (approx. $880 week before tax) |
Thanh Duy wins $10m in a lottery and invests the funds in a term deposit generating $500,000 per annum in interest | Luck | 5 | Will be in the highest Q because $500k equate to approx. $10k per week – well over the $2000 that is the average income for Q5 |
Colin has a mild physical disability that has prevented him from gaining employment. He has been unemployed and receiving benefits for 4 years | Transfers | 1 | Likely to be in the lowest Q because he is receiving a basic subsistence income (just enough to afford the basics) |
Mary comes from a remote indigenous community in the Northern Territory and has only been able to find casual work (3 hours per week) in Melbourne. She also receives job search allowance | Transfers and wages | 1 | Likely to be in the lowest Q because she is earning only a little more than the basic subsistence income |
Alistair Clarkson signs on again as coach of the Hawthorn Football Club | Salary | 5 | Likely to be in Q5 because his salary is likely to be above $500k a year |
Ling is a plastic surgeon specialising in facial re- construction following traumatic events | Salary | 5 | Likely to be in Q5 because her salary is likely to be above $500k a year |
Henry left school at 16 and has been working as an unskilled labourer in the construction industry | Wages | 1-2 | Likely to be in Q1 or the bottom of Q2 because he is being paid the lowest possible working wage (approx. $500 week before tax) |
Hafiz has been a full-time teacher for 20 years and is at the top of the income scale in the profession | Wages | 3-4 | The top wage for a teacher is approximately $100k p.a., putting Hafiz in the middle to upper quintile |
Gennaro is an actor featuring in numerous amateur productions. He drives a taxi to provide him with enough income to pursue his passion for acting | Wages | 1-2 | Likely to be in 1 or 2 depending on how many hours he works as the average income for Q2 is $710 per week after tax |