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In a five-part series this week, Crikey will examine the things that divide Australians. Today, it’s money and how it separates the haves and have nots.
Australia has always been the land of contrasts: where you can ski one week and sunbathe on a beach the next, but has it become less contrast and more divide? After years of strong economic growth, it is emerging that capitalism’s “trickle down” method of wealth distribution is more like a drip, and as such, many Australians are being left behind.
The country prospers…
- The average fortune of those on the BRW Top 200 Rich List increased by 26.5% in the 2006-7 financial year to an average of $688 million (before sub-prime woes hit). — BRW
- CEOs of the top 50 Business Council of Australia member companies now earn more in a week than the average Australian earns in a year. — University of Sydney study quoted by Frank Stilwell
- Australian motor vehicle sales are continuing to run at record levels despite rising interest rates, boosted by a buoyant SUV and light truck market. In 2007, Australians bought 1 million cars in a year for the first time. Car sales have expanded by 35% since 2001. — FCAI
And yet…
- St. Vincent de Paul assisted over 2.1 million Australians in 2006. An estimated 100,000 Australians are currently homeless. The percentage of the population living in poverty increased in 10 years (1994 to 2004) from 7.6% to 9.9%. Australia ranks unfavourably against most OECD nations on poverty. — St Vincent’s and Australia Fair Report.
- 26% of low-income renters sometimes went without food in 2007 — news.com.au
- It’s estimated that between 250,000 and 300,000 Australians will default on their mortgages in 2008. “Joint research by JPMorgan and Fujitsu Consulting … predicts that 750,000 owners will be hit by ‘mortgage stress’ in the coming months, meaning more than 35 per cent of their income will be swallowed by home-loan repayments.” — The Sydney Morning Herald
And on top of that:
- At a national level, Indigenous people counted in the Census in 2006 represented 2.4% of the population with a known Indigenous status, however, Indigenous people made up 4.8% of the people with a known Indigenous status in the lowest income quintile, and only 0.6% of the highest income quintile. Approximately 45% of all Indigenous people were in the lowest income quintile. — Australian Bureau of Statistics
A class divide?
- The top quintile of households in the 1990s enjoyed about 50% of Australia’s Gross Weekly Income, while the lowest quintile earned less than four percent. Those in the lowest quintile received an average pay rise five percent over five years, while those in the top bracket enjoyed a rise of 23.4%. — St Vincent’s de Paul
- In 2006 more than 83% of independent school applicants were offered a university place at Melbourne University, when only 43% of government school applicants. — according to Unequal Access to University Places, a study by the Centre for Population and Urban Research at Monash University, reporetd in The Age
But what about Government welfare spending (fondly called ‘middle class welfare’)?
- $4.37 billion is spent yearly on non-government schools, more than universities and government schools receive. One of the schools to benefit was the prestigious King’s School in Sydney, whose funding more than doubled from $1.44 million to $3.23 million between 2001 and 2003. This is to a school that boasts 15 cricket fields, 13 rugby fields, 14 tennis courts, five basketball courts, five soccer fields, two climbing walls, 25 and 50 metre swimming pools, a diving pool, a gym, and an indoor rifle range. — The Sydney Morning Herald
- Suburbs with the greatest rate of uptake of the Baby Bonus (designed to help families because, according to former Treasurer Peter Costello “one of the hardest times for families, financially, follows the birth of a first child”) include the affluent Kirribilli in Sydney, central Melbourne suburbs and New Farm in Brisbane. — The Australian
Tomorrow: Wet v Dry
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9 Comments
Will be the big divisive issue of the next 10 to 20 years. Those wihout are just not going to accept that they have ‘missed out’. A very large part of the community have no concept of rent problems and housing affordability, don’t want to know, and have no interest in sharing their wealth. No, it is not just hard work; a lot of wealth is inherited or just plain good luck as to where you are born or who your parents are. Many poor people work hard. Governments of all types support the wealthy sector with tax breaks and welfare The rich should start building their compounds and high fences; do we really think the ‘have nots’ are just going to accept it forever?
You allege that “$4.37 billion is spent yearly on non-government schools, more than universities and government schools receive.”. You have only included Federal Goverment funding, not State Government funding. Surely you should have factored that in? Is this slopply or a deliberate ommission?
Great article, however one point needs clarification - Private Schools in NSW do receive substantial government funding, however one more than any other receives up to $13million in subsidies annually -yes $13 million. The King’s School, like other private schools, may receive $2mil but this other school is selective, private and teaches fundamental religious studies. No, not Judeo nor Christian. The school is the state’s largest Islamic school the Malek Fahd Islamic School in Greenacre. (Source SMH a couple of months ago).
The point is moot but of all the subsidised schools all the selective schools it appears that the Malek Fahd Islamic School is the most selective yet the most subsidised. I have tried calling the school to see if they accept both Sunni and Shi’ite students but unfortunately the phone is always engaged.
My point is that the impending religious and ethnic divide will surpass the economic divide. I am a migrant myself and happily support all things Australian
Its difficult to work out which is the more offensive. The gross burden to the taxpayer of private schools or the complete lack of action on the issue by a newly elected mob intent on keeping the status quo when it comes to inequitable funding policies.
Dear Dara, can we get the figures right? According to the Productivity Commission (2008) all Australian Governments spent $22.6 billion on Government schools ($10,010 per student) and $6 billion on non-Government schools ($5,550 per student).
If you want to have a debate about funding of non-Government schools fine, but based on hard facts.
Your resident intern is being mentored well, given this left wing ‘Ode to Misery’. Under Howard all sections of the income distribution did very well and families with kids were helped with the tax benefits and baby bonuses.
Poverty is not growing in Australia despite the best efforts of the welfare industry to present otherwise. Earlier contributors have pointed to the misleading nature of including only Federal government money to private schools and omitting State government contributions, a regular device used by the quasi-socialists who hate anything not government controlled, especially schools.
I love Anthony’s comment about ” the rich should start building their compounds high…” Who said Marxism is dead? This guy’s got an MBA from Havanna University’s Business school. He’s probably president of his local Greenpeace Committee as well, same branch as Clive Hamilton.
If Clive and his boys have their way, then poverty will grow and quickly!
Journalism & similar left wing occupations (public service, union officals, social science academia, teaching etc) are the last bastions of wealth envy. The working class, for whom you all seem to care so much, have accepted that life is as is - some are born to it, some make it and most get by well enough not to have reason to gripe. The working class has largely disappeared with the rise of incomes and standards of living acorss the board meaning most are reasobaly conmfortable in this blessed, peaceful society and don’t really care hom much the rich have. Pity the journos & others warped by their wealth envy but lets not forget the millions killed as a result of wealth envious teachers (Mao) & other c-grade intellects (Lenin, Stalin) taking charge.
Mr Papafilis I don’t think anyone was suggesting we drive Australia’s organisation into the hands of people like Mao or Stalin. But you cannot deny that the money spent on King’s could be better spent on other, struggling schools. Also the increase in poverty and homelessness is a disgrace! Surely a country which has experienced over ten years of economic prosperity should have reduced (not increased) these ugly statistics!
You’re only as good as your second serve.
Tony & John make a great comedy act- there is no poverty, excessive wealth is commendable, make sure you sh-t on anyone to get your nose in the trough, might is right money is god and Jesus John Howard made sure that everyone prospered under his reign of infinite love (of money) & compassion (for the rich & white). You blokes are a sure crack up & should put aside your ’ i WANT MORE MONEY’ careers and do comedy for News Ltd end of year parties, the Sydney Institutes Friday night nosh ups & a jaunt overseas at the American Enterprise Institutes famous ‘let’s neo-con the world’ soirees. you two are sure to be a (s)hit!