The 19th annual report from the Household, Income and Labour Dynamics in Australia (HILDA) Survey was released today.
Author
- Ferdi Botha
Senior Research Fellow, Melbourne Institute: Applied Economic & Social Research, The University of Melbourne
The HILDA Survey has been following the same people every year since 2001, which makes it possible to examine how the lives of Australians have changed across several aspects.
With data from 2001 to 2022, in this year's report we looked at issues including income inequality, household chores, and the impact of natural disasters on Australian households.
Income inequality is the highest since 2001
Funded by the Australian government and managed by the Melbourne Institute, the survey is one of Australia's most valuable social research tools .
HILDA examined the lives of 14,000 Australians in 2001 and has kept coming back each year to discover what has changed over the course of their lifetimes. It now covers 17,000 Australians, due to the expansion of participants' families.
The survey shows that since COVID-era financial support ended, income inequality has risen substantially.
The increase in inequality stems from growth in higher incomes as compared to middle incomes, as well as a fall in the growth of lower incomes relative to middle incomes.
This means, relative to the median earner, Australians already earning a high income have seen the growth in their incomes rise. In contrast, Australians with low incomes have seen a decrease in the rate of growth in their incomes.
Between 2021 and 2022, 51.2% of respondents reported their real incomes have declined. This is up from about 41% in preceding years, suggesting a decrease in people's purchasing power.
A technical measure called the Gini coefficient was 0.32 in 2022, the highest since we started the survey in 2001. The measure ranges from 0 to 1 and is an index that measures overall inequality, with higher scores suggesting greater income inequality.
Older Australians are getting richer too
Over the same period, household wealth has continued to grow.
However, there are large and growing age differences in the growth in household wealth. For young people aged between 18 and 34, net wealth rose by 72.4% to $238,942 over the 20 years to 2022.
But for older Australians aged 65 to 74, net household wealth jumped by 125% to about $1.26 million.
These age disparities in household wealth are partly explained by rates of home ownership, which are much higher among older Australians.
Home ownership is also the most important asset component in terms of total wealth. In 2022, almost 65% of households owned their home, and just over 20% of households held investment properties and holiday homes.
As a proportion of total wealth, the family home accounts for 44.5% and investment properties account for 14.9%.
Women are still doing most of the housework
Australian women still undertake the majority of housework, whereas men's share of housework has remained constant over 20 years.
Women's time spent on housework (such as cleaning, cooking, running errands) has fallen slightly from 23.8 hours per week in 2002 to 18.4 hours per week in 2022.
Men spent 12.8 hours per week on housework, precisely the same amount they did 20 years earlier. Thus, women are still doing close to 50% more housework than men are.
Men have increased the time they spend on caring responsibilities (such as playing with their children, helping with homework, caring for an elderly relative), from 5 hours per week in 2002 to 5.5 hours per week in 2022. The time women spend on care has risen from 10.1 hours per week to 10.7 hours per week over the same period. In 2022, women spent almost double the time on care duties than men.
Among couples, men are generally more satisfied than women are with the current division of unpaid work. Most women feel they do more than their fair share at home. Men tend to believe they share the housework and care fairly with their partner.
Surge in home damage due to weather-related disasters
Respondents were asked if a weather-related disaster (such as floods, bushfires or cyclone) had damaged or destroyed their home in the past 12 months. In 2022, 4.5% reported experiencing such an event.
This is a substantial increase from the year before, when only 1.3% of Australians reported weather-related home damage, and exceeding the previous peak of 2.7% in 2011.
There are also regional differences, closely corresponding with the timing of specific floods or bushfires in the states and territories. In 2022, 9% of New South Wales residents and 6% of Queensland reported home damage, consistent with major floods experienced in these regions in the months prior to the survey.
Among all Australians who in 2022 reported home damage due to a weather-related disaster, 62.5% were in NSW and 27.3% were in Queensland.
With the current cyclone Alfred forecast to hit Queensland and northern NSW on Friday, we expect a further significant increase in reported home damage.
Ferdi Botha is affiliated with the ARC Centre of Excellence for Children and Families over the Life Course.
