Revealed: How much Australians are REALLY earning – as experts claim the country’s record-low wages growth is YOUR fault
- In the decade to 2018, household incomes for couples, singles grew by just $44
- They are taking home a quarter of what the top 10 per cent of homes are getting
- Wages have been growing at record low level for the past five years in Australia
- Treasury economists blamed Australians staying in the same job for stagnation
Australians are typically earning a lot less than their rich friends or their boss.
The top 10 per cent of households are taking home four times as much as those on average incomes.
If record low wages weren’t bad enough, there’s the fact average weekly household incomes have grown by just $44 during the past decade.
Or put another way, the earnings of typical couples and singles living alone stood at $55,224 or $1,062 a week.
By comparison, Australia’s top 10 per cent of households earned $4,275 in the 2017-18 financial year, or $222,300 a year before tax, Australian Bureau of Statistics data showed.
Australia’s richest people are earning more than four times that of average households (pictured is a stock image)
Australia’s top 10 per cent of households earned $4,275 in the 2017-18 financial year, or $222,300 a year before tax, Australian Bureau of Statistics data showed. A breakdown of gross income deciles showed the poorest 10 per cent of Australians earned just $472 a week, or $24,544 a year, a level that is a ninth of what the richest 10 per cent earned
A breakdown of gross income deciles showed the poorest 10 per cent of Australians earned just $472 a week, or $24,544 a year, a level that is a ninth of what the richest 10 per cent earned.
Couples and singles right in the middle earned $1,701 a week or $88,452 a year, the ABS Household Income and Wealth data series showed.
Despite the small increase in household for average households, ABS chief economist Bruce Hockman said wealth inequality had remained stable for six years.
‘Over the past decade income growth has been slow,’ he said.
Since early 2014, wages growth has stagnated below the 2.5 per cent level for a record time.
A Treasury paper being released on Tuesday argued the reluctance of workers to switch jobs for better pay may be partly to blame.
The department’s deputy secretary Meghan Quinn told the Economic Society of Australia’s annual conference in Melbourne on Monday wages growth would be ‘unlikely’ to return to pre-global financial crisis levels unless workers could more easily move between jobs.
‘Treasury work highlights the fact more frequent job switching is associated with higher real wage growth, even for those that stay in their job,’ she told the conference attended by The Australian.
If a record low wages weren’t bad enough, there’s the fact average weekly household incomes grew by just $44 in the past decade
In the four years leading up the GFC in 2008, weekly household incomes grew by $220 to $1,018, in real terms adjusted for inflation.
But in the decade after that equivalent earnings grew by just $44, or by a fifth of that, to $1,062.
For low-income households, average weekly incomes grew by just $28 while high-income homes saw their earnings grow by $57, the ABS data showed.