Australians have long believed that ours is an egalitarian country. Until recently, the notion that people receive a fair share based on our own efforts had been deeply ingrained in our national psyche. Yet this belief is weakening as inequalities in both income and wealth have grown. 

The impacts of growing wealth inequality can be profound. Those without wealth often lack a buffer to cope with economic shocks, and can be denied economic security in the longer term. And when wealth is concentrated in the hands of a few, it limits opportunities for people from less wealthy backgrounds, entrenches generational poverty, erodes trust in institutions, and undermines social cohesion. 

To understand the scale of these impacts across Australia and their causes, this report looks at the changing distribution of wealth over the past two decades and the role federal government policy has played in widening the wealth gap. The data show that wealth inequality has grown significantly.

Key findings

• The wealthiest Australians hold 90 times the wealth of those with the least
• This has been fuelled by tax breaks for superannuation and housing investments
• High house prices have fuelled inequality and locked many people out of housing and financial security.

Areas for reform

• Reform taxes on housing investments.
• Promote fairness in retirement.
• Reform the tax treatment of investments and shares.
• Curb personal tax avoidance through private trusts and companies. 
• Economic security for people on the lowest incomes.