This research paper unpacks changes to income and wealth levels during the COVID-19 pandemic. The initial pandemic period saw an unprecedented decline in income inequality. Due to the massive increase in support payments from the Government, the incomes of lower-income households grew rapidly in relative terms in the early stages of the pandemic.

Some lower-income Australians were able to save or reduce debt due to early government support. While house prices soared during the pandemic period, the strongest price increases were in regional areas where house prices are lower. This all had the effect of reducing wealth inequality.

Income inequality increased later in the pandemic period as the economy recovered and government support was phased out.

The report examines three cohorts in closer detail - older people, women, and Aboriginal and Torres Strait Islander people.