Poverty gaps
This graph shows the average poverty gap for all households in poverty from 1999 to 2019. It is in 2019 dollars, and using the 50% median income after-housing costs poverty line. The higher (red) line shows poverty gaps measured using the pre-2007 ABS income definition, while the lower (dark blue) line is based on the post 2007 income definition. The light blue line shows the quarterly changes in the poverty gap during the 2019-20 period. The average poverty gap increased steadily from $168 per week in 1999 to $254 per week in 2009 (in constant 2019 values), then rose to $290 per week in 2017. Over that period the poverty gap followed a different pattern to the poverty rates during the same period, reflecting a combination of factors working against each other: * Changes in the composition of people below the poverty line after 2009 reduced the poverty gap before 2009 and increased it afterwards. These influences were partly offset by increases in housing costs throughout this…
Percentage of children in poverty from 1999-2019
This graph shows the percentage of children in poverty from 1999 - 2019, using the 50% of median income after-housing costs poverty line. The poverty line used is 50% of median income, taking account of housing costs. The lower (dark blue) line shows poverty rates measured using the pre-2007 ABS income definition, while the higher (red) line is based on the post 2007 income definition. The light blue line shows the quarterly changes in poverty rates during the 2019-20 period. It shows that child poverty, alongside the overall poverty rates, declined substantially from 1999 to 2003 (from 18.6% to 14.3%), then rose to 18.8% in 2007. It fell gradually to 17.6% in 2017. It also shows that child poverty rose sharply than fell dramatically during the first year of the pandemic (2019-20); from 16.2% in the September quarter of 2019 to 19% in the March quarter of 2020, then fell to 13.7%, a two-decade low, in June 2020.
Poverty lines by family type
This table shows poverty lines by family type in dollars per week, including social security payments.
Percentage of all people in poverty from 1999 - 2019
This graph shows the percentage of all people in Australia in poverty from 1999 - 2019. The poverty line used is 50% of median income, taking account of housing costs. The lower (dark blue) line shows poverty rates measured using the pre-2007 ABS income definition, while the higher (red) line is based on the post 2007 income definition. The light blue line shows the quarterly changes in poverty rates during the 2019-20 period, when the impacts of COVID-19 lifted the poverty rate from 13.2% in the September quarter of 2019 to 14.6% in the March quarter of 2020, and the extra coronavirus income support payments introduced meant it fell to 12% - a 17 year low - in the June quarter of 2020.
Average wealth per adult in 2020
According to Credit Suisse’s Global Wealth Report, the average wealth of Australian households was $628,000 per adult in 2020, the fourth highest in the world behind Switzerland, the United States and Hong Kong (North America as shown on the graph refers to the region, as does Asia-Pacific and Europe).
Average wealth of households by age, as a percentage of the average wealth of all (%)
This graph shows that wealth inequality has increased across generations since 2003, especially in the distribution of owner-occupied housing. As a proportion of the average value of owner-occupied homes held across all age groups: • The average value held in households with a reference person under 35 years fell from 31% in 2003 to 26% in 2021; • That of those aged 35-44 years fell from 82% in 2003 to 69%; • That of those aged 64 years rose from 140% in 2003 to 144%.
Share of wealth held by households ranked by wealth (% in 2021)
Consistent with the findings of our Inequality in Australia 2020 report, wealth is still very unequally distributed in 2021-22. * The highest 10% of households by wealth has an average of $6.1 million or 46% of all wealth. *The next 30% have an average of $1.7 million or 38% of all wealth. * That leaves the majority – the lower 60% - with $376,000 or just 17% of all wealth.
Wealth inequality (Gini coefficient)
This graph shows trends in a summary measure of inequality, the ‘Gini coefficient’. The Gini varies across a range from zero (equal wealth) to one (where all wealth is held by a single household). It rose sharply from 0.573 in 2003 to 0.624 in 2018; and then declined slightly to 0.613 by 2021, close to the level reached around 2016.
Share of all wealth held by 131 billionaires compared with low-wealth groups (%)
The 131 billionaires comprised 0.001% of the population yet held 2.9% of all household wealth in 2021, a decline from 3% in 2020. This graph shows that they held more wealth among them than the lower 20% of households ranked by wealth (who held 0.7% of all wealth) and somewhat less than the second-lowest 20% (with 4.7%). This suggests that 131 individuals held almost as much wealth between them as the 2.8 million households in the lowest 30% ranked by wealth.
Shares of overall wealth held by the lowest 40%, middle 50% and highest 10% around 2018 (%)
Source: OECD (2021) Inequalities in household wealth and financial insecurity of households, OECD Policy Insight. Note: Households are ranked according to wealth. The level of wealth inequality in Australia around 2018 (before the pandemic) was somewhat below the average among 28 wealthy nations surveyed by the OECD. The highest 10% of households ranked by wealth held approximately 45% of all wealth in Australia compared with an OECD average of approximately 50%. The high level of home ownership and housing wealth in Australia is a major reason for this.