Australia’s Billionaires Earn 1,300x More Than Average, Oxfam Urges Wealth Tax

Australia’s Billionaires Earn 1,300x More Than Average, Oxfam Urges Wealth Tax

Australia’s billionaires are making an extraordinary $67,000 an hour, a figure that starkly highlights the nation’s growing wealth divide. A new report by Oxfam, titled Takers Not Makers, reveals that the wealth of Australia’s 47 billionaires rose by 8% in 2024—equivalent to an astonishing $3.2m per hour. The report calls for a wealth tax to address these stark inequalities and bring resources back into public infrastructure, including schools, hospitals, and housing.

The findings shed light on the enormous disparity between the country’s wealthiest individuals and the average Australian, who earns around $52 per hour. Oxfam’s chief executive, Lyn Morgain, has framed the sharp rise in billionaire wealth as being fuelled by systemic privilege and long-lasting effects of colonialism.

Billionaire Wealth Continues to Grow

Using data from Forbes, the report found that billionaire wealth in Australia increased by $28bn last year. Australian billionaires now collectively hold vast fortunes worth hundreds of billions in total. Unsurprisingly, some of the country’s richest individuals, like mining magnates Gina Rinehart and Andrew Forrest, sit atop this mountain of wealth, boasting fortunes of over AU$47bn (£24.8bn) and AU$25.6bn (£13.5bn) respectively.

Key Drivers of Wealth Accumulation

Much of Australia’s billionaire class owes its wealth to two dominant sectors—mining and property—industries closely linked with the ongoing extraction of resources. Rinehart’s Hancock Prospecting and Forrest’s Fortescue Metals Group have thrived in a nation rich in minerals, a resource that has driven Australia’s high-performing export economy.

Morgain emphasised how billionaire wealth is “largely tied to unearned privilege, like intergenerational inheritance, and is rooted in colonial history.” Thirty-five percent of Australian billionaires inherited their fortunes. Meanwhile, First Nations peoples suffer disproportionately, with a third living in the poorest 20% of the population. This imbalance further underscores systemic injustices that continue to ingratiate the wealthy while leaving marginalised communities behind.

Oxfam’s Wealth Tax Proposal

Oxfam has tabled a proposal to tax billionaires’ wealth at a modest rate of 2-5%. According to Morgain, this wealth tax could generate billions in public funds that would benefit essential services, including education, health care, and affordable housing.

“The ultra-wealthy won’t even notice this tax, and yet the effects would be monumental,” Morgain explained, urging for immediate action from political leaders ahead of the federal election. She believes that redistributing just a small portion of accumulated wealth could correct structural imbalances in the economy.

The Political Context

While billionaire wealth skyrockets, public debate around inequality continues to grow. Morgain’s statements coincide with mounting public calls for tax reform aimed at regulating wealth accumulation. Critics argue that current government policies favour the rich, permitting billions to go untaxed while public services face chronic underfunding.

“As voters approach the federal election, political leaders must commit to bold economic reforms,” said Morgain. She added that fair taxation is the only sustainable path toward equitable resource distribution, a sentiment echoed by political commentators in recent months.

The Global Implication of Rising Wealth Gaps

Australia’s wealth tax discussion is part of a larger global discourse on economic inequality. The rapid acceleration of billionaire wealth aligns with Oxfam’s startling projection that the world could see at least five trillionaires within the next decade.

This stark trajectory raises the question of societal responsibility. Should nations prioritise the taxation of billionaires as a means to invest in public welfare? Australia appears poised to take such conversations further as Oxfam gathers support for its proposal from civil society and advocacy groups across the nation.

Next Steps for Economic Reform

Oxfam’s findings paint a clear yet troubling picture—one where the divide between Australia’s billionaire elite and everyday workers grows wider each passing year. Addressing this imbalance is not just a moral imperative; it’s an economic necessity. Wealth taxes, as proposed by Oxfam, offer a relatively painless solution to replenish public coffers, bridge income divides, and create a fairer society for all Australians.

If Australia’s political leaders fail to respond to these glaring inequalities, the nation risks deepening the systemic barriers that prevent true economic justice. With the federal election around the corner, the time to hold politicians to account for meaningful change is now.

Source

The Guardian


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