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Economic benefit going to rich ‘inequality on steroids’

Ninety per cent of Aussies received seven per cent of economic benefits from 2009, a report says.

Ninety per cent of Aussies received seven per cent of economic benefits from 2009, a report says. Photo: Getty

A disparity between how much of the economic benefits the vast majority of Australians get compared to the top end of town has been described as “inequality on steroids”.

A new report shows 90 per cent of Australians received just seven per cent of the benefits of real economic growth over a decade from 2009.

The top 10 per cent of income earners received 93 per cent of the benefits.

The report from the Australia Institute says stagnating wages, insecure work, soaring corporate profits and an unfair tax system means people are going backwards.

The institute’s senior economist Matt Grudnoff said the data showed the economy wasn’t working for most Australians.

“From the 1950s to the 1980s Australia was considered the land of the fair go and we saw people benefiting more equally from economic growth,” he said.

“Today, that Australian dream has turned into an inequality nightmare, fuelling the cost of living crisis for low and middle-income earners.”

The left-leaning think tank is using the report to reignite its push to scrap stage three tax cuts, which would lower the tax rate for people earning over $180,000 a year.

Mr Grudnoff says it will only make inequality worse, instead pushing for a corporate “super profits tax”.

“Soaring energy prices have seen gas and electricity bills increase for average Australians, while super profits from Australia’s gas and coal go overseas,” he said.

“Australians know they are missing out.”

The Albanese government has continuously said its position on keeping the tax cuts has not changed.

– AAP

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