Inequality across the nation has climbed to its highest point in more than two decades as the incomes of high-paid Australians grow faster than those on lower wages and homeownership levels among young people collapse. Source: SMH.
Data from the long-run HILDA (House Income and Labour Dynamics in Australia) survey conducted by the University of Melbourne and the Melbourne Institute, which has been tracking 17,000 people since 2001, shows the end of pandemic-era financial support to the nation’s less well-off has been the driving force behind the lift in inequality.
While still well below the inequality levels of countries such as the United States and Britain, the survey’s results are a challenge for Prime Minister Anthony Albanese, who has focused throughout his term on the government’s efforts to help the less well-off.
Inequality fell to its lowest level in HILDA’s history in 2020 as support for low-income workers was delivered by the Morrison government to offset the financial pain caused by closing down parts of the economy to deal with COVID.
But as that assistance, including increased welfare payments, came to an end, inequality increased. Incomes for the top 10 per cent of the population grew faster than middle-income earners while incomes for the lowest paid declined relative to the rest of the population.
HILDA co-director Roger Wilkins said it now appeared inequality was at its highest point since the survey began.
He said that after the initial effect of the pandemic, higher incomes in Australia have grown faster relative to middle incomes.
“At the same time, the relative growth of lower incomes has declined, which drives inequality up and makes it harder for poorer Australians to move into higher income groups.”
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Lucky for some: the older get richer in the worst wealth divide in two decades (By Shane Wright, SMH)
