Tests using Household, Income and Labour Dynamics in Australia (HILDA) unit record data from 2006/2007 to 2010/2011 indicate that Australian households on average insure against income shocks. For a 10% change in income, non-durable expenditures change by 0.14%, while food expenditures change by 0.05%; both results are statistically insignificant. Non-durable expenditures respond asymmetrically to positive and negative income shocks, especially during the Global Financial Crisis, falling by 0.1% for a 10% income rise but falling by 0.6% for a 10% income decline in 2009; the latter result is statistically significant. Controlling for risk tolerance heterogeneity yields identical results.