Published by Per Capita

Key findings

• The housing sub-function of the Federal Budget was $3.5 billion in 2021/22, but this did not include key housing support measures such as Commonwealth Rent Assistance and property tax concessions. With these included, actual 2021-2022 federal expenditure on housing is estimated at $27 billion.
• The share of federal housing spending going to the lowest 20% of income earners declined from 44% in 1993 to 23% in 2023, while the share going to the top 20% increased from 9% to 43%.
• In the last decade alone, the share going to the top 20% of earners has increased by over a third.
• The share of total federal housing expenditure going to property investors rose from 16.5% in 1993-94 to 61.4% in 2021-22.
• Investor tax concessions have grown from $1.5 billion in 2000 to an estimated $17 billion in 2024, effectively operating as a shadow housing policy with a significant impact on the market.
• In 2023-2024, federal investor tax breaks will be worth almost five times the amount spent by the Federal Government on social housing and homelessness services through the National Housing and Homelessness Agreement and the $2billion Social Housing Accelerator Fund, announced in 2023.
• Strategic expenditure on social housing and homelessness services, which are negotiated between the Federal and State/Territory Governments, once made up well over half of total federal housing spending. Now just 7% of total federal housing expenditure goes toward these programs.

The Australian Inequality Index is a ground-breaking new tool that provides a multidimensional measure of inequality across a range of economic, social, and demographic indicators. By tracking changes in inequality over time, we hope to enable a richer, more nuanced understanding of the root causes of inequality and develop targeted solutions to address them.

The over-reliance of economists and policy makers on traditional measures of progress, such as Gross Domestic Product (GDP) or Gross National Income (GNI), is understandable: it has been the dominant measure of economic progress for the better part of a century. Yet there is a shift afoot, with many policy thinkers and leaders now acknowledging its limitations as a tool to measure genuine social progress.

This shift can be seen in the rise of movements advocating the implementation of wellbeing budgets as a core part of government policy processes. That the Australian Federal Government has recently embraced the wellbeing framework underscores the utility and timeliness of our Index.

The Index provides seven conceptually sound, easy to follow sub-indices, and a composite index that brings these seven dimensions together. The sub-indices provide a useful set of insights into progress achieved within each of the chosen dimensions: income, wealth, gender, generation, ethnicity, disability and First Nations.