Wealth Inequality and Economic Opportunity

Concern: Is Australia's economic system providing fair opportunities for people to improve their financial circumstances?

Key Points

• Wealth is distributed unevenly across Australian households.

• In 2022–23, Australia's wealth inequality measure was 0.606, down from 0.628 in 2018–19. Although inequality decreased over this period, substantial differences in household wealth remain.

• Property ownership, investments, wages, inheritance and access to education can affect people's ability to build wealth.

• Wealth inequality and income inequality are different. Someone may earn a reasonable wage but have very little accumulated wealth, particularly if they do not own property.

Possible Improvements

• Examine the effects of taxation and government assistance on different income and wealth groups.

• Consider the relationship between housing affordability, education, employment opportunities and wealth inequality.

• Assess whether economic policies address underlying problems or provide temporary financial relief.

Simple Example: Someone who owns a home may benefit when property prices increase. Someone saving for their first home may find that the same increase makes purchasing a property more difficult.

Future Consideration: What effects could different approaches to wealth inequality have on economic opportunity, investment, employment and business growth?