Australia’s inequality isn’t an accident, it’s policy

Inequality continues to rise in Australia because we play by one rule: Don’t upset the rich, it says Carl Rhodes.

As another JANUARY comes to an end, so does the annual meeting of the World Economic Forum in Davos, Switzerland. ‘spirit of dialogue‘ was this year’s slogan, and the world’s political and economic elite once again descended into the idyllic Alpine environment to, in their own words, “Participate in forward-looking discussions to address global issues and set priorities.” And “Call for bold collective action”.

The truth was less noble. It was another routine spectacle, with the rich and powerful standing shoulder to shoulder and jockeying for position. US President Donald Trump He boasted about this:

“Growth is booming, productivity is rising, investments are rising, incomes are rising, inflation has been defeated.”

Former “first friend” Elon Musk artificial intelligence “The road to abundance”.

Big words from two billionaires! The facts tell a different story. Like reported In Oxfam’s statement before the meeting, it was seen that the wealth of billionaires increased by more than 16 percent in 2025. Australia is following the same route. Here too, the wealth and power of the ultra-rich continues to grow and economic inequality continues to deepen. So why isn’t anything being done about it?

Australia follows world trend in inequality

Oxfam, the international organization focused on reducing global poverty and inequality, publishes its annual Inequality Report every year as a prelude to the Davos conference. Its aim is to highlight the problem of global inequality and confront global leaders with the extent and consequences of this injustice as they gather to discuss the future of the world.

Oxfam has published a report every year since 2014, documenting each time how the wealth and power of billionaires has increased while economic inequality has stagnated or worsened.

Since then 2015The number of people facing moderate or severe food insecurity worldwide has increased by 43 percent; Almost half of the world’s population now lives in poverty. There are more than 3,000 billionaires worldwide today; This is the highest number ever and their collective wealth is at a record level.

It’s not just about money, it’s also about power. Oxfam’s analysis shows that a billionaire is 4,000 times more likely to hold political office than the average person. Despite this enormous influence, and no matter how loud the warning signs, the Davos elite, including billionaires, appear to have failed to acknowledge or address the deepening crisis of global economic injustice.

Australia is no exception. When Oxfam Australia announced 2025 Resisting the Rule of the Rich: Defending Freedom Against Billionaire Power The average Australian billionaire’s wealth will increase by almost $600,000 for each day of 2025, the report dated January 19 said. Australia is home to 48 billionaires and that number is growing. They own more wealth than the bottom 40 per cent of Australians combined.

Band-Aid on a broken system

You might expect such a strange concentration of wealth to be a scandal in a country that claims to reward fair dealing, friendship, egalitarianism, and a healthy disrespect for power.

Instead of anger we get silence. Australia’s political class treats inequality as an acceptable side effect of modern life rather than a political choice. Leaders on both sides of politics are wary of the concentration of wealth and power, wary of disrupting the neoliberal order that has remained entrenched for decades.

The result is a political culture that normalizes inequality by acting as if nothing can or should be done about it. Even as inequality erodes social trust and undermines the values Australians claim to hold dear, we are in a downward spiral where naming the problem is avoided and confronting it is politically unthinkable.

It is true that the Labor government has implemented some practices since its re-election in May 2025. policies To relieve financial pressure. There have been income tax cuts, Medicare exemptions for low-income earners, support for first home buyers, energy bill reductions and cuts to student debt.

These policies offer welcome relief for households struggling with the cost of living crisis, but leave the structures that drive inequality untouched. These are band-aids that offer workarounds on a broken system but leave the underlying problem untouched.

Golden rule: Don’t upset the rich

Prime Minister Anthony Albanese has been consistent on one thing: his government will not take bold action on inequality. He clearly ignored Introducing and even considering new tax measures, insistent last August “The only tax policy we implement is the tax policy we implemented in the election.”.

In practice, this means years of inaction, with no meaningful reform being considered until at least after May 2028, and probably nothing being done after that. This despite growing pressure for reform across society capital gains tax And negative gearand apply inheritance tax or wealth taxes. These are the levers that can be the beginning of real structural change. They are not withdrawing.

Albanese is a political realist who wants Labor to win the next election. He also knows that any hint of tax reform is considered political poison by voters who fear their assets will be touched. And so the government chooses the safest way to deliver aid, avoid reforms, and hope no one notices the widening gap between the rich and everyone else.

The reality is that in mainstream Australian politics, every policy option is on the table except those that might upset the rich. That’s how oligarchy works. The political class will mend edges, but they will not confront the structures that allow billionaires’ wealth to grow unchecked and inequality to spiral out of control.

Until this changes, the number of billionaires will continue to grow and inequality will continue its relentless, corrosive course.

Carl Rhodes is Professor of Business and Society at the University of Technology Sydney. Wrote several books On the relationship between liberal democracy and contemporary capitalism. You can follow him on X/Twitter @ProfCarlRhodes.

Support independent journalism Subscribe to IA.