Ordinary Australians are struggling to make ends meet while the richest enjoy billions in untaxed capital gains, a new report says.
The background: The Australia Institute's analysis reveals that the wealth of the richest 200 Australians rose from 8.4 per cent of national GDP in 2004 to 23.7 per cent by 2024, indicating a widening wealth gap where the richest benefit from untaxed capital gains while ordinary Australians struggle financially.
The report warns that such inequality could harm social cohesion, exacerbate political polarisation, and hinder economic growth.
The key quote: "Australia is getting more unequal." — David Richardson, a senior research fellow at the think tank.
What else to know: The Australia Institute estimates that the failure to fully tax realised capital gains in 2023/24 cost the government $19 billion in lost revenue.
It advocates for stronger taxation measures, including a more comprehensive capital gains tax, an annual wealth tax, and the introduction of an inheritance tax, which is currently absent in Australia but common in other OECD countries.
What happens now: The report calls for urgent tax reforms to address wealth inequality, proposing measures that could generate significant revenue and reduce the economic disparity that is increasingly burdening ordinary Australians.
