According to a recent article in ‘The Guardian’, new data from the Australian Taxation Office reveals that wealth concentration in property investments is an ongoing concern in Australia.
- Only 1% of taxpayers own nearly a quarter of all property investments in the country.
- Among property investors, 7% account for 25% of all property investments, with 1% holding six or more investment interests.
- The majority of these investors are over the age of 50.
Individual investors are seen as the driving force behind rising prices, making it harder for aspiring homeowners to enter the market. The professionalisation of the investor industry has also contributed to the increase in property investors, with housing seen as a reliable investment for future returns.
The Tenants’ Union of NSW emphasises that the perception of housing as primarily a wealth-generating investment rather than a social necessity, has negative implications for both renters and prospective homeowners.
Economic policies and regulations that disproportionately benefit those who already possess substantial wealth, allowing them to accumulate even more assets over time, have played a significant role in shaping wealth distribution in Australia.
Add to this that a significant portion of the population struggles to meet their basic needs, save, or invest, and it becomes impossible for them to accumulate wealth. Meanwhile, those with higher incomes can save and invest more, leading to an accumulation of assets and further concentration of wealth.
Addressing wealth concentration requires a comprehensive approach that encompasses policies to promote income and wealth equality, equitable access to education and opportunities, fair taxation, robust regulation, and efforts to promote inclusive economic growth.
The goal being to create a more equitable economic system that prioritises the collective well-being of all members of society over the accumulation of wealth by a few individuals.
We need to find ways to make sure the super richest start contributing back to society. Instead of making massive amounts of income from us, and using that to buy our houses.
If we don’t do that, houses are not even going to be affordable for working people, and are going to be less and less affordable for future generations. And that will mean future generations cannot get financial security to raise a family.
Our future will be one where all of our money goes on just paying for the basics of life, and we will never own houses, because they are all owned by the super-rich.
What that means is if you’re born poor, you will die poor. And if you’re born rich, you’ll die richer. And that’s definitely not the world I want my children to inherit!
Learn more about our Housing and Renting campaign here.
Anti-Poverty Network SA 