This paper analyses recently released ABS data on the distribution of income which allows, for the first time, estimates to be made of the distribution of income in 2000-01 and how it has changed since the mid-1990s. It is now possible to examine how inequality has changed since 1994-95 and since the election of the Howard Government in 1995-96. The estimates indicate that while real disposable incomes increased across the distribution, income inequality has also increased since 1994-95, particularly between 1996-97 and 1999-2000.