Ordinary Australians are struggling to make ends meet while the richest enjoy billions in untaxed capital gains, a new report shows.
The context: Australia Institute analysis reveals the wealth of the richest 200 Australians has increased from 8.4 percent of national GDP in 2004 to 23.7 percent in 2024, indicating a growing wealth gap where The wealthiest benefit from tax-free capital gains while ordinary Australians struggle financially.
The report warns that such inequalities could harm social cohesion, exacerbate political polarization and hamper economic growth.
The key quote: “Australia is becoming more and more unequal.” — David Richardson, senior fellow at the think tank.
What else to know: The Australia Institute estimates that the failure to fully tax capital gains made in 2023/24 has cost the government $19 billion in lost revenue.
He advocates for tougher tax measures, including a more comprehensive capital gains tax, an annual wealth tax and the introduction of an inheritance tax, currently absent in Australia but common in other countries of the OECD.
What’s happening now: The report calls for urgent tax reforms to tackle wealth inequality, proposing measures that could generate significant revenue and reduce the economic disparities that are increasingly burdening ordinary Australians.
