Miranda Stewart with Roger Wilkins and Troy Henderson 28 th March - PowerPoint PPT Presentation

Miranda Stewart with Roger Wilkins and Troy Henderson 28 th March 2019 Inequality, Tax and Welfare Melbourne School of Government 1 Series: Talking About Economic Inequality

Income inequality in Australia Gini coefficient for household equivalised disposable income 0.36 0.34 ABS HILDA 0.32 0.3 0.28 0.26 5 7 9 1 3 5 7 9 1 3 5 7 9 9 9 0 0 0 0 0 1 1 1 1 - - - - - - - - - - - - 4 6 8 0 2 4 6 8 0 2 4 6 9 9 9 0 0 0 0 0 1 1 1 1 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 2 2 2 2 2 2 2 2 2

Income inequality in selected OECD countries Gini coefficient, around 2016 0.5 0.45 0.4 0.35 0.3 0.25 0.2 k a s y a a e d m n d e y d a y l n n m s y e o a r i d r n e l c e e e n c n d i a i n l c r u a l g a o i a a e t n n a r a a k h i d t a a p a t x m u p a i g o r e d s a a m I r C g e l l n a l e u o n r t t S a t u K r g l l r n w a r J S r e s M e P u F r G e T A n e C u o e e z B S H Z d i h t P D G A K e i w t w t e d i e S n N e N t U i n U Source: OECD Data

Top incomes in Australia Income share of the top Personal 'tax gross' income excluding capital gains 8.1% in 2015-16 9 Minimum income to be in top 1%: 8 $245,326 6.3% in 1994-95 7 Top 1% 6 Top 0.1% 5 % 4 2.4% in 2015-16 3 1.8% in 1994-95 Minimum income to be in top 0.1%: 2 $605,802 1 0 1994-95 1999-2000 2004-05 2009-10 2014-15 Sources: ATO, ABS

Relative income poverty in Australia Percentage of people below half the median income 14.0 13.0 12.0 (Median 11.0 ‘equivalised’ income was 10.0 % $47,875 in 9.0 2016-17) ABS 8.0 HILDA 7.0 6.0 5 7 9 1 3 5 7 9 1 3 5 7 9 9 9 0 0 0 0 0 1 1 1 1 - - - - - - - - - - - - 4 6 8 0 2 4 6 8 0 2 4 6 9 9 9 0 0 0 0 0 1 1 1 1 9 9 9 0 0 0 0 0 0 0 0 0 1 1 1 2 2 2 2 2 2 2 2 2

Wealth inequality in Australia Gini coefficient for household wealth 0.62 0.61 0.6 0.59 0.58 ABS 0.57 HILDA 0.56 0.55 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Note: HILDA excludes dwelling contents

Wealth inequality in selected OECD countries Wealth share of the top 1%, around 2015 40 30 % 20 10 0 Greece Japan Italy Poland Belgium Portugal Australia Spain Canada Hungary Chile United Kingdom France Denmark Germany Austria Netherlands United States Source: OECD (2018)

Income inequality before and after income taxes and transfers Gini coefficient – ABS Survey of Income and Housing 0.5 0.45 0.4 0.35 0.3 0.25 0.2 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 - - - - - 0 - - - - - - - - - - - - - - - - 4 5 6 7 8 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 2 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 - 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 9 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 9 1 Market income (wages, investment income, etc.) Gross income (market income plus cash transfers) Disposable income (gross income minus income taxes) Full income (disposable income plus in-kind social transfers)

Miranda Stewart with Roger Wilkins and Troy Henderson 28 th March 2019 Inequality, Tax and Welfare Melbourne School of Government 9 Series: Talking About Economic Inequality