A new report from Swiss bank UBS has revealed that Australia’s median wealth has fallen by almost 7% since 2020, despite the rich getting richer. The report, which analyzed global wealth trends, found that while average personal net wealth in Australia climbed by 19% this decade, the median wealth of Australian adults contracted by nearly 7%. This suggests that expanding wealth has favored those at the top, with the richest claiming an ever-greater share of the wealth.
Australia has the third-highest median net wealth in the world, at nearly $US211,000 (A$306,000), but this has contracted by nearly 7% since 2020. The report also found that more than 25,000 people across Australia became millionaires last year, contributing to a record increase in new millionaires worldwide. However, the gains were uneven, with median wealth declining in most markets and highlighting a growing divide between the wealthiest and the broader population.
Australia is not alone, with median wealth lower in 18 of the 29 countries analyzed by UBS. Saul Eslake, an independent economist, attributed the widening wealth inequality in Australia to the housing market. He noted that Australia hasn’t experienced as much widening in income inequality as other similar countries but has had big increases in wealth inequality.
Eslake argued that the country’s tax system does very little to ameliorate the market forces driving increased inequality in the distribution of wealth, and suggested that an inheritance tax could be a possible solution.
