Average poverty gaps among people in income support households
This graph shows trends in poverty gaps for households in which at least one member receives a substantial income support payment, expressed in constant 2015-16 dollars per week, adjusted for household size.
It shows that poverty gaps for households relying on Newstart Allowance rose in several increments over the period, from $81 per week in 1999-00 to $136 per week in 2015-16. Poverty gaps for households relying on Age Pension and Disability Support Pension moved in more narrow fashion. The poverty gap for those relying on Age Pension rose from $52 a week in 1999-00 to $77 a week in 2015-16, while for those relying on Disability Support Pension the gap rose from $59 per week in 1999-00 to $73 per week in 2015-16. The poverty gaps for households relying on Parenting Payment fell from $70 a week in 1999-00 to $67 a week in 2004-05, then increased to $104 in 2015-16. The poverty gap for households on Carer Payment were more changeable, falling from $148 per week in 1999-00 to $28 per week in 2002-03, then rising to $94 a week in 2015-16.
Average poverty gaps among people in income support households by percentage
This graph shows trends in poverty gaps for households in which at least one member receives a substantial income support payment (an income-tested payment for adults such as Newstart Allowance or Age Pension, as distinct from a supplementary payment such as Family Tax Benefit), expressed as a percentage of the 50% median income poverty line. It shows that poverty gaps for households relying on Newstart Allowance rose in several increments over the period, from 33% in 1999-00 to 41% in 2015-16. Poverty gaps for households relying on Age Pension and Disability Support Pension moved in more narrow fashion.
Trends in poverty rates by income support payment
This graph compares poverty rates among households in which at least one member receives a substantial income support payment (an income-tested payment for adults such as Newstart Allowance or Age Pension, as distinct from a supplementary payment such as Family Tax Benefit). Poverty rates for those receiving Newstart Allowance and Parenting Payment were consistently above the average, whilst the poverty rate for the Age Pension was consistently below average. The difference in poverty rates between these payments has increased since the Global Financial Crisis of 2007-08.
Poverty in income support households reliant on Newstart Alllowance declined from 61% in 1999-00 to 48% in 2003, and then rose in zigzag fashion to 78% in 2015-16. Among income support households reliant on most pension payments (Age Pension, Disability Support Pension and Carer Payment), poverty rose during 2003-07; declined sharply from 2007-09; and has continued to fall since then.
For households reliant on Parenting Payment, the trend was similar to the pension payments until 2007 but then changed. There was no decline in 2009 (as the pension increase did not extend to sole parents) and it rose over the last two years to 59% in 2015-16.
Profile of each household income group by income support status
Unlike most other graphs in this website, this one is limited to the 21% of people (including children) living in households where the reference person (usually the highest income-earner) receives an income support payment. Its purpose is to compare the types of income support payments received in low, middle and high household income groups.
Among people towards the lower end of the income scale, there is an increasing proportion of households where the reference person receives Newstart Allowance People in households whose reference person receives Newstart Allowance comprise 16% of the lowest 20% income group; 30% of the lowest 10% income group; and 47% of the lowest 5% income group. The reasons for the greater concentration of people in households receiving Newstart Allowance in the lowest income groups are that Newstart is the lowest, and most strictly income-tested, of these income support payments.
On the other hand, a slight majority (51%) of people in the lowest 20% income group (where the reference person receives income support) are in households receiving Age Pension. Although the pension was over $150pw more than Newstart Allowance for a single person, this reflects the much larger population of Age Pension recipients overall.
Among people in the lowest 20% income group whose household reference person receives income support, in 51% of cases that payment was Age Pension, in 16% of cases Newstart Allowance, in 15% of cases Disability Support Pension, in 9% of cases Parenting Payment Single; and in 8% of cases it was Carer Payment.
Australia’s population by gender
Those identifying as female comprise 51% of the population, while those identifying as male comprise 49% of the population.
Trends in average wealth by wealth group
This chart shows the real value (after inflation is taken into account) of average wealth holdings of each wealth group, compared over time.
As with income inequality, changes in wealth inequality were driven mainly by the highest 20% wealth group, although this growth was more volatile than for middle and low wealth groups. This was due in part to the greater share of the wealth of the highest 20% held in financial assets such as shares.
The average household wealth of the highest 20% rose from $1.9 million in 2003-04 to $2.6 million in 2009-10, declined to $2.4 million in 2011-12 and rose again to $3.255 million in 2017-18.
Increase in average wealth by wealth group
This graph compares the increase in real value (after inflation is taken into account) of average wealth holdings of each wealth group.
Between 2003-04 and 2017-18:
- The average wealth of the highest 20% wealth group rose by 68%.
- The average wealth of the middle 20% wealth group rose by 36%
- The average wealth of the lowest 20% wealth group rose by 6%.
Change in shares of overall wealth by wealth group
This shows changes in the shares of overall household wealth held by each wealth group.
Between 2003-04 and 2017-18, the highest 20% wealth group increased its share of overall wealth by 4.5%, while the share of all other groups declined. This represents an unambiguous increase in wealth inequality over the period.
Trends in average household wealth in different assets
This shows compares the real value (after inflation is taken into account) of average wealth holdings in different assets. The average value of owner-occupied housing (the largest component of household wealth) rose strongly before the Global Financial Crisis, declined between 2009-10 and 2011-12, and then resumed its strong growth. Overall, the average value of owner-occupied housing rose by 28% (after inflation) during this period.
The value of other real estate (investment property) followed a similar pattern. But grew much more strongly overall, by 61%. The average value of superannuation holdings grew very strongly and consistently across the period (by 119% overall), so that its share of wealth holdings increased.
From 2003-04 to 2015-16, the share of owner-occupied housing in all household wealth fell from 45% to 39%, though it remained the largest component. The share of wealth in superannuation rose from 14% to 20% (reflecting the gradual maturing of the superannuation scheme), while that of shares and business assets rose from 18% to 19%. The share of investment property assets in household wealth rose from 11% to 12%.
Trends in the concentration of wealth in different assets, from 2003-04 to 2017-18
From 2003-04 to 2017-18, the overall value of household wealth rose by 56% after inflation, led by strong growth in the value of superannuation, shares and other financial investments, and investment property. In that time, the average value of superannuation held by households (including those who do not have it) rose by 141% from $89,000 to $214,000, shares and other financial assets rose by 74% from $121,000 to $210,000 and investment property rose by 66% from $71,000 to $119,000. The average value of the largest asset - owner-occupied housing - grew at a more modest 35% from $294,000 in 2003 to $398,000 in 2017, along with 8% growth in the value of other non-financial assets from $86,000 to $92,000.