Grapevine

Could a wealth tax help reduce inequality?

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% is growing much faster than the lowest 60%. And now, nearly half of all wealth is held by the top 10% 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 Center 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."