The idea of taxing personal fortunes is under increasing discussion amid the growing disparity in wealth distribution in society.
It's not in your imagination - the gap between the wealthy and everyone else is growing.
Research by ACOSS and UNSW Sydney shows that the average wealth of Australia's highest 10 per cent is growing much faster than the lowest 60 per cent. And now, nearly half of all wealth is held by the top 10 per cent of households. So, as the rich get richer and the rest face a seemingly uphill battle to stay afloat, do we need to find ways to rebalance the economic scales?
Associate Professor Bruce Bradbury from the Social Policy Research Centre at UNSW Arts, Design & Architecture says wealth inequality - that is, the unequal distribution of wealth in society - is coming under increasing public scrutiny.
"For a long time, interest in inequality has tended to focus on income and ability to consume, but now there's an increasing focus on what role wealth plays in determining opportunities," A/Prof. Bradbury says. "And as wealth has become more and more concentrated, that's caught the eye of more people as a marker of disparity."
Emeritus Professor Chris Evans, School of Accounting, Auditing & Taxation at UNSW Business School, says there will always be differences in wealth - and wealth inequality, up until a point, isn't inherently problematic. It is when wealth is too unequally distributed that it can lead to the concentration of economic power and opportunities in the hands of just a few at the top, while those at the bottom are left out.
"It's when there is gross inequality in wealth that it is a disaster for social cohesion because it unfairly limits opportunities for those less well-off to fulfil their potential," Prof. Evans says. "So, there is certainly an argument for using some of the excess money at the top end to help some of the people at the bottom, and we might just find that we'll have a much fairer and more efficient society."
