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New online tool empowers community organisations to tackle rising inequality

Posted on 01 Jun 2023

By Greg Thom, journalist, Our Community

The level of inequality in Australia has increased markedly over the past seven years, according to a ground-breaking new online interactive tool designed to democratise the measurement of social wellbeing.

Emma Dawson
Per Capita Executive Director Emma Dawson launches the Australian Inequality Index at the 2023 Communities in Control Conference.

Financially supported by Our Community and developed by independent public policy think tank Per Capita, the Australian Inequality Index measures inequality across a range of economic, social and demographic indicators.

The tool is designed to look beyond traditional measures that focus on economic growth such as GDP by instead homing in on how that growth is distributed.

The Index revealed the major driver of growing inequality is a significant growth in the value of assets held by the wealthiest Australians.

So much so, the wealth divide in Australia is growing at a rate “not seen for generations.”

Other key findings include:

  • Australia is now less equal that it was in 2010, with a marked increase in overall inequality since 2016.
  • Younger Australians saw no real wage growth for the decade from 2010.
  • Persistently high rates of incarceration, suicide and lower life expectancy have ensured First Nations inequality remains stubbornly high.
  • Discrimination faced by people with disabilities and those from racially and culturally diverse backgrounds is a major source of inequality, particularly in relation to finding a job and level of income.
  • The Index showed while the gender pay gap and lifetime wealth gap remain stubbornly high, women’s political representation has improved.

Per Capita Executive Director Emma Dawson said by democratising access to data and information, the Index empowers people and communities to understand the complex causes and effects of inequality.

Community and not-for-profit organisations in particular can now access the type of data used to informs policy making but is too often inaccessible to those without significant resources.

“The Australian Inequality Index reveals a deeply concerning trend: wealth inequality in Australia has reached staggering levels,” said Ms Dawson.

“The concentration of wealth in the hands of a few poses significant challenges to social cohesion and trust in democratic institutions."

The Index analyses inequality levels according to seven sub-indexes: Wealth, Income, Gender, Ethnicity, Disability, Generation and First Nations.

Ms Dawson said the index makes clear we can’t ignore the stark reality of growing inequality in Australia.

“It erodes social cohesion, exacerbates economic disparities and limits the potential of our nation,” said Ms Dawson.

“It is high time we prioritize policies that promote inclusive growth and bridge the wealth divide."

The good news is, growing economic inequality is not inevitable.

Rather, it is a consequence of policy choices.

“The Australian Inequality Index compels us to re-evaluate our priorities and commit to comprehensive reforms that ensure wealth is shared equitably, leaving no one behind," said Ms Dawson.

Unveiled at this week’s Communities in Control Conference in Melbourne, Ms Dawson said the development of the Australian Inequality Index would not have been possible without funding from Our Community - an organisation that champions real social and economic change.

“We thank them for their generous support.”

Our Community Managing Director Denis Moriarty said he was proud to provide the initial funding to develop such a valuable tool for the sector.

“The money could not have gone to a better organisation – Per Capita is just brilliant at working on progressive analyses,” he said.

“This body of work will provide the proof that state and federal governments and philanthropy must provide bigger investments across all sectors to break the growing inequality problems Australia is facing.”

Inequality Index graphic snip
The Australian Inequality Index measures inequality levels across seven sub-indexes: First Nations, Gender, Disability, Ethnicity, Intergenerational, Income and Wealth.

“It erodes social cohesion, exacerbates economic disparities and limits the potential of our nation,” said Ms Dawson.

“It is high time we prioritize policies that promote inclusive growth and bridge the wealth divide."

The good news is, growing economic inequality is not inevitable.

Rather, it is a consequence of policy choices.

“The Australian Inequality Index compels us to re-evaluate our priorities and commit to comprehensive reforms that ensure wealth is shared equitably, leaving no one behind," said Ms Dawson.

Unveiled at this week’s Communities in Control Conference in Melbourne, Ms Dawson said the development of the Australian Inequality Index would not have been possible without funding from Our Community - an organisation that champions real social and economic change.

“We thank them for their generous support.”

Our Community Managing Director Denis Moriarty said he was proud to provide the initial funding to develop such a valuable tool for the sector.

“The money could not have gone to a better organisation – Per Capita is just brilliant at working on progressive analyses,” he said.

“This body of work will provide the proof that state and federal governments and philanthropy must provide bigger investments across all sectors to break the growing inequality problems Australia is facing.”

Communities in Control | Understanding Inequality: Emma Dawson speaking at the 2022 conference.

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