Research finds inequality in Australia worsening in housing and health | ABC NEWS

Summary

A new report reveals that wealth inequality in Australia is worsening, with the richest 1% holding nearly a quarter of national wealth while the bottom 40% own just 5%. Cameron Allen of Monash University highlights that over a third of key economic, social, and environmental indicators are stagnant or declining, including innovation investment, household debt, housing stress, and threatened species. The report emphasizes that poverty affects 3.3 million Australians, including 760,000 children, and advocates long-term policy solutions such as tax reforms, increased welfare, and mechanisms like the Future Generations Commissioner to encourage sustainable decision-making beyond election cycles.

Takeaways

• 📊 Cameron Allen's report assesses 80 economic, social, and environmental indicators across Australia.
• 📉 About 50% of these indicators are stagnant or declining, showing broad-based challenges.
• 💰 Wealth inequality is rising, with the top 1% holding nearly a quarter of Australia’s wealth.
• 🏠 The bottom 40% of Australians own only 5% of the nation’s wealth, down from 7.8% in 2004.
• 📈 Economic challenges include declining investment in innovation and rising household debt.
• 👥 Social issues highlighted include income inequality, housing stress, psychological distress, and rising suicide rates.
• 🌱 Environmental concerns include declines in threatened species, sustainable fishing, and forested areas.
• 👶 Poverty affects 3.3 million Australians, including 760,000 children, with welfare payments covering only 65% of the poverty line.
• 🛠 Proposed solutions include tax reforms and increased social welfare transfers, potentially reducing income inequality by a third by 2050.
• ⏳ Long-term planning is essential, but short-term election cycles and lack of incentives hinder government action.
• 📜 The Well-Being and Future Generations Bill and a proposed Future Generations Commissioner aim to embed long-term thinking in policy decisions.

Q & A

What proportion of Australia's wealth is held by the richest 1%?

Nearly a quarter (25%) of all wealth in Australia is held by the richest 1% of the population.

How much wealth do the bottom 40% of Australians own?

The bottom 40% of Australians own just 5% of the nation’s wealth.

Which social, economic, and environmental indicators are going backwards in Australia?

Economic indicators: investment in innovation and research, household debt; Social indicators: income and wealth inequality, housing and financial stress, psychological distress, and suicide rates; Environmental indicators: threatened species, sustainable fishing, and forest area.

How has wealth distribution changed in Australia over the past 20 years?

The wealth share of the bottom 40% of households declined from 7.8% in 2004 to around 5.5%, while the wealth share of the top 20% of households has increased.

What is the current poverty situation in Australia?

Approximately 3.3 million Australians live in poverty, including 760,000 children.

How have welfare payments changed in Australia since 2001?

Welfare payments were roughly enough to live at the poverty line in 2001 but have since declined to around 65% of the amount needed to live at the poverty line.

What solutions does the report suggest to reduce inequality and poverty?

The report suggests tax reforms, increased social welfare transfers, and long-term policy planning, which could reduce income inequality by a third by 2050.

Why is long-term thinking challenging for governments?

Governments are usually accountable to short-term election cycles, facing immediate problems, and lack incentives to prioritize long-term planning.

What is the purpose of the Well-being and Future Generations Bill?

The bill aims to encourage long-term thinking by requiring governments to consider well-being in decision-making and by creating a Future Generations Commissioner to represent long-term interests.

What common factor underlies many of the negative trends in Australia?

A common thread is underinvestment in key areas across economic, social, and environmental domains.

How does wealth inequality impact society according to the report?

Wealth inequality can contribute to social tensions and conflicts, as evidenced by events in other countries like the United States.

What approach does the report recommend for achieving 2030 and 2050 targets?

The report recommends using integrated, long-term policy planning with modeling to guide decisions and measure progress on economic, social, and environmental indicators.