From a linked article:

>For these purposes, income includes earnings from work, government benefits and other sources of money, and it is averaged among all family members.

Yes, it is supposed to include income from all sources.

https://theconversation.com/measuring-poverty-on-a-spectrum-...

I don't think that's quite right, it would be the average of the inverse hourly wage not the inverse of the average hourly wage.

    >>> import statistics
    >>> 1/statistics.mean([10,30,100])
    0.02142857142857143
    >>> statistics.mean([1/10, 1/30, 1/100])
    0.04777777777777778

No, it's

average poverty ≝ average(1 / annual income)

Inversely proportional to the harmonic mean of average yearly income.