The top 200 richest people in Australia hold a wealth equivalent to nearly a quarter of the national GDP, according to a recent report by the Australia Institute. This wealth has more than tripled in the past two decades, with the top fifth of households holding wealth that is 146 times greater than the bottom fifth. The report highlights that growth in capital gains, largely benefiting the wealthy, has outstripped national wages, leading to increased wealth disparity in the country.
Cost-of-living pressures have hit low-income earners hard, with landlords raising rents and energy retailers price-gouging, further widening the wealth gap. The researchers argue that tackling wealth disparity is crucial to resolving the cost-of-living and housing crises in Australia.
Tax reform targeting capital gains and private wealth is suggested as a potential solution to rising inequality. The report recommends implementing a simple annual wealth tax of 2% on the richest 5% of households, which could yield billions in revenue for the government to provide essential services for the majority of Australians.
David Richardson, one of the report’s authors, emphasized the need for new policies to address the growing wealth inequality in Australia. He stated that failing to appropriately tax wealth and capital gains not only lacks ethical justification but also hinders the country’s economic growth. Bold policy actions are needed to counter the increasing inequality and generate much-needed public revenue.
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