The inclusion of ir and stik increased the mean equivalised disposable household income edhi from 918 to 1220 per week in 2011 12 and reduced the inequality of income distribution across households. Abs september 2020 g d p c o n s u m p t i o n d w e.
Income inequality in australia is similar to the oecd average with a gini coefficient of 0 326 in 2012.
Australia income distribution graph. Just 6 3 percent of australian adults had wealth of over one million u s. While the average household earns just over 116 000 per annum the top 1 in 5 earn more than twice this exceeding 280 000 and the bottom 1 in 5 take home around one fifth of the average a little over 24 000. 59 4 percent of australians were in the wealth range between 100 000 and one million u s.
Happened to the distribution of income in australia since the late 1980s at both the individual and household level. Graph 3 graph 3. The average household gross income is 116 584 however the top 20 of households earn 48 of all income.
This infographic of annual household income by quintiles 20 categories each comprising around 2 million of australia s 10 million households shows the spread of total earnings. Across the oecd this ratio is 9 6 1 on average. Distributional changes are explored along with changes in summary measures of income inequality such as the gini coefficient according to its technical meaning used within the academic literature.
Australian growth 1995 2000 2005 2010 2015 2020 8 6 4 2 0 2 4 8 6 4 2 0 2 4 gdpgrowth year ended quarterly source. The average income of the top 10 of income earners is almost 9 times higher than that of the bottom 10 in up from a ratio of 8 to 1 in the mid 1990s. Income distribution percentage share of income or consumption is the share that accrues to subgroups of population indicated by deciles or quintiles.
Distribution of equivalised disposable household income with and without ir and stik 2011 12. The staff working paper trends in the distribution of income in australia by jared greenville clinton pobke and nikki rogers builds on an oecd methodology to analyse changes in the distribution of various forms of income from labour earnings of individuals to final incomes inclusive of government payments and in kind services along with taxes paid of households. Twelve times more than the bottom 20 who are left with just 4 of australia s income.
Inequality has increased since the 1990s as in many other oecd countries. Percentage shares by quintile may not sum to 100 because of rounding. That leaves the middle classes 60 of australia s population with the other 48 of earnings.