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Income Inequality in Australia

  • Date Submitted: 11/25/2012 08:15 PM
  • Flesch-Kincaid Score: 43.5 
  • Words: 793
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Income inequality is a measurement of the distribution of income that highlights the differences between individuals or households making most of the income in a given area and those making very little. I chose to research this area of inequality as it seems to lead to various other inequalities and therefore has a significant impact upon the people of Australia.
There are many factors in society that can lead to income inequality:
Rapid Population Growth – this causes inner city and outer suburban sprawl.   Low income earners are forced out to the suburbs to find affordable housing.   This in turn leads to more disadvantage as jobs are scarcer in outer areas and people who live there usually have to spend more on petrol travelling to work as public transport is not a viable option. Access to services, such as internet connections, can also be limited placing these people at a further disadvantage. This also leads to areas of great disadvantage and areas of high wealth
Income Tax Charges and the G.S.T. – the introduction of the G.S.T. had an adverse effect on lower income earners as they had no choice but to purchase food, clothing and housing which increased the amount of tax they had to pay.   The G.S.T did decrease inequality by forcing high income earning individuals who employ tax dodging methods to pay tax on the purchase of luxury items.   Our progressive income tax system is designed to achieve substantive equality.
Unemployment - Unemployment combined with the rise of smaller households and single parent families have been major factors driving ongoing rises in poverty and income inequality (Organisation for Economic Co-operation and Development [OECD] 2008). The ongoing importance of unemployment as a key driver of disadvantage is of particular concern given the recent resurgence of unemployment as a result of the economic turndown during the Global Financial Crisis.
Decreasing number of people per household –...


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