Australian Income Inequality Massive Despite Household Wealth Rising

Post by Sharat on January 2, 2009 · Under Australian Economy, news ·

A report commissioned by the Australian Government shows that the wealthiest 20 per cent of Australian families own as much as 60 times more wealth than the poorest 20 per cent. The report titled “2008 Families In Australia” says that Australians with more than A$ 750,000 control 61 per cent of Australia’s wealth, whilst those with less than A$ 70,000 control just 1 per cent of the country’s wealth.

The income inequality exists despite household incomes having risen by more than one third over the last decade. The research shows that the bottom quarter of households earn less than $500 a week compared with the top quartile which earns $1600 a week on average.

Housing related debt has almost doubled in less than a decade and represents 140 per cent of total income up from 80 per cent just seven years ago. Food prices have risen 3.8 per cent and fuel by 8 per cent annually since 1998, both above the 3.1 per cent average CPI.

Bad debt levels are also increasing, with 40,000 home borrowers more than 30 days behind in their repayments, including 15,000 who are more than three months behind. The average Australian is $79,000 in debt and carries $2200 in credit card debt. The report suggests that one fifth of Australians have trouble paying bills on time and seek financial help from friends and family.

As parents begin spending the Government’s recession-busting bonuses, enjoy tax cuts and more generous childcare rebates, the financial state of some families’ remains dire. Single parent families with young children, the unemployed and indigenous families are more likely to be poorer than other families.

Compare Australian Health Insurance Deals

No TweetBacks yet. (Be the first to Tweet this post)