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Australians blind to soaring wage inequality despite real earnings decline

Nearly half of full-time workers now earn six figures—but inflation is eroding paychecks. Why do so many still believe the system is fair?

The image shows a graph depicting the number of poverty and poverty rates from 1959 to 2005. The...
The image shows a graph depicting the number of poverty and poverty rates from 1959 to 2005. The graph is accompanied by text that provides further information about the data.

Australians blind to soaring wage inequality despite real earnings decline

A new study reveals Australians consistently underestimate wage inequality in the country. The gap between high and low earners has widened significantly over the past 15 years. Yet many remain unaware of just how uneven the distribution has become.

In 2010, only one in ten full-time workers earned A$100,000 or more. By 2025, this figure had jumped to nearly half of all full-time employees. Despite this shift, most people still believe the wage structure is far more balanced than it actually is.

Wages did grow by 3.4% over the year to December, according to official data. However, when adjusted for inflation, real wages fell. The consumer price index rose by 3.8% over the same period, meaning workers effectively earned less in practical terms.

Public opinion on wage fairness remains strong. Almost everyone surveyed agreed that fewer full-time workers should be stuck on low pay. Researchers suggest that better awareness of the true scale of inequality could increase support for policies aimed at redistributing wealth.

The findings highlight a disconnect between perception and reality in Australia's wage landscape. As high earners now make up a much larger share of the workforce, the study suggests that clearer information could influence future policy decisions. The decline in real wages adds further pressure on households, regardless of income level.

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