Vanishing act: say goodbye to Australia’s middle class
Published: 29 July 2016
Australia’s middle class and average income earners are disappearing, amid a broadening gap between our country’s rich and poor.
A recent study, conducted by social research group McCrindle, found more than two-thirds of Australian households earned below the average six-figure household income of $107,276.
The research also found Aussie households in the top 20 percent have average earnings 12 times greater than the bottom 20 per cent, and their average wealth is 71 times greater at $2.5 million compared to $35,000.
“It is a worrying trend — there’s a bigger divide today compared to two years ago,” Social researcher Mark McCrindle told News Corp.
“The land of the middle class is now under threat. The challenge of all of this is that a classless society, which is what Australia has always been, can start to fray. Communities start to fragment,” he said.
McCrindle’s research also found average household income was below the national average in Victoria, Queensland, South Australia and Tasmania, while in South Australia, Queensland, Tasmania and the Northern Territory households dropped below the national average wealth of $809,900.
Mr McCrindle said Australia’s middle class was not the only group to suffer, with Gen-Y shut out of the traditional ‘Aussie dream’ with today’s house prices beyond the reach of many.
“We have seen a generation that has been shut out of property ownership and have lost the capacity to get property, which was the traditional Aussie dream,” he said.