The rich leave Australia’s poor well behind

Australia’s rich families have more than four times as much to spend each week  as the nation’s poor.

They also have more than twice as much as middle income Australians.

These facts – and many more – emerge from a study of household income and income distribution just published by the Australian Bureau of Statistics.

The bureau studied income patterns for 2007-08  -  and its  report predates the onset of the global economic crisis last September.

It reported, for example, that Australian households – or families – in the nation’s top 20 per cent income bracket had an average of $1,646 to spend each week, at that time.

That compares with  averages of $692 a week for middle income families – and just $409 a week, for those in the lowest 20 per cent.

The average – over all income groups – was $811 a week at that time.

After adjustment for inflation – and statistical factors – this was 13 per cent higher than the average for 2005-06.

It was also 50 per cent higher than the 1994-95 average.

In all cases, these amounts represented incomes, after tax had been paid.

As always, where you live has a lot to do with how rich you are likely to be.

The bureau reports that Australia’s highest average incomes are to be found in the Australian Capital Territory, the Northern Territory and Western Australia.

The Northern Territory figure excluded what the bureau called the Territory’s “remote areas.”

Incomes in Australia’s most populous State, New South Wales, were just 1 per cent above the national average.

Capital city incomes, in both New South Wales and Queensland, were well above those of the rest of these States.

But incomes in  both South Australia and Tasmania were well below the national average.

Single parent families had an average income of $520 a week.

That was similar to those of older families, at $558 a week.

Older people, though, generally had lower housing costs, as most had paid off their homes.

Younger couples, without children, had higher average incomes, though, at $1,155 a week.