Income distribution in Australia shows significant concentration at both ends of the spectrum. A relatively small proportion of taxpayers earn very high incomes that contribute a disproportionate share of total income tax revenue, while a substantial portion of the workforce earns below the average income.
ATO Taxation Statistics provide detailed income distribution data showing the number and proportion of taxpayers at each income level. This data allows individuals to understand where their income sits relative to other Australian taxpayers.
The Gini coefficient measures income inequality within a country. Australia's income inequality has grown over recent decades, though remains lower than many comparable developed economies. The redistributive effect of the progressive tax system moderates inequality compared to the pre-tax distribution.
The median taxpayer income is significantly lower than the average, reflecting the upward skew of the income distribution caused by a relatively small number of very high earners pulling up the average.
Data sourced from ATO Taxation Statistics individual income distribution tables. Updated annually.