New analysis from the anti-poverty organisation Oxfam has uncovered a stark increase in the fortunes of Australia's wealthiest individuals, with billionaires collectively boosting their wealth by approximately $10.5 billion over the past year.
Wealth Accumulation at Breakneck Speed
According to the data, this staggering sum equates to an average daily increase of nearly $600,000 for each billionaire. The report, released on Monday, highlights a rapidly growing chasm between the ultra-wealthy and ordinary Australians. It found that the 48 billionaires now based in Australia hold more combined wealth than the bottom 40% of the population, a group comprising around 11 million people.
Oxfam's chief executive, Jennifer Tierney, stated that billionaire wealth globally is expanding at "unprecedented speed, three times faster than we've seen it grow in the past." She criticised tax systems that she argues favour the wealthy and fail to generate sufficient revenue for public services like housing and childcare.
Policy Levers and Calls for Reform
The organisation used its findings to demand significant tax reforms, specifically calling for an end to negative gearing and the capital gains tax (CGT) discount. These concessions are currently under examination by a federal parliamentary inquiry. Oxfam proposes axing the CGT discount for individuals and trusts, phasing out negative gearing, and introducing a progressive net wealth tax on the richest 0.5% of households.
Tierney argued that a 5% wealth tax on Australian billionaires last year alone could have raised $17.4 billion. She claimed this revenue could fund universal cheap childcare, extend energy bill relief for two years, and increase the humanitarian budget nearly sevenfold.
A Nation of Contrasting Fortunes
The report paints a picture of a nation grappling with severe inequality. While billionaire numbers have grown, with eight new members joining the ranks since 2020, over 3.7 million people live in poverty in Australia, including 757,000 children. Furthermore, one in three households experienced food insecurity last year.
"We are still seeing a massive disparity between your average Australian who's struggling to pay bills and between billionaires who are actually not capable of spending their entire wealth in their lifetime," Tierney said.
The federal inquiry into the 50% CGT discount recently heard evidence that such tax settings "skew incentives towards property investment" and undermine policies designed to help first-home buyers. A submission from NSW Treasury officials estimated the discount costs the federal budget about $23 billion in forgone revenue.
The new billionaires identified by Oxfam include the co-founders of tech giant Canva, the majority owners of the Reece plumbing chain, the founders of Chemist Warehouse, and figures from industries spanning medical software, online gambling, coal mining, and fund management.
