In a nation grappling with widening wealth inequality, a startling revelation has emerged: Australia’s billionaires are accumulating riches at an unprecedented pace. According to a new analysis by Oxfam, the country’s 47 billionaires are raking in an average of A$67,000 per hour—a staggering 1,300 times more than the average Australian worker. As their fortunes swell, the anti-poverty organization is sounding the alarm, urging major political parties to take bold action by taxing the super-rich to address this growing disparity.
The Billionaire Boom: Mining Magnates and Inherited Wealth
Oxfam’s report, titled “Takers Not Makers,” sheds light on the astronomical growth of billionaire wealth in Australia. In 2024 alone, the collective net worth of the nation’s billionaires surged by more than 8%, or A$28 billion, at a mind-boggling rate of A$3.2 million per hour. Lyn Morgain, Oxfam Australia’s chief executive, attributes this concentration of wealth to two primary factors: inheritance and the ongoing impacts of colonialism.
The mining industry, in particular, has proven to be a goldmine for Australia’s billionaires. Gina Rinehart and Andrew Forrest, the country’s two wealthiest individuals, have amassed fortunes of US$30 billion and US$16.3 billion, respectively, largely through their involvement in the metals and mining sector. Forrest, the former CEO and current non-executive chairman of Fortescue Metals Group, has pledged to give away his wealth, but the fact remains that a significant portion of billionaire wealth in Australia is tied to the extraction of resources from traditional lands and First Nations communities.
The Inheritance Factor: Unearned Privilege and Untaxed Wealth
Inherited wealth plays a significant role in the billionaire landscape, with 35% of Australia’s billionaire wealth being passed down through generations. Morgain emphasizes that this wealth is often rooted in unearned privilege and colonial powers, allowing it to go largely untaxed. The stark contrast between the affluence of the billionaire class and the struggles of First Nations peoples is particularly striking, with a third of Indigenous Australians falling into the poorest 20% of the population.
“Because billionaire wealth is often rooted in unearned privilege, much of it tied to intergenerational advantage and colonial powers, much of it goes untaxed.”
– Lyn Morgain, Oxfam Australia CEO
The Call for a Wealth Tax: Funding Schools, Hospitals, and Housing
To address this glaring inequality, Oxfam is proposing a “relatively modest” wealth tax, under which Australian billionaires would be taxed between 2-5% of their overall wealth. Morgain argues that the ultra-wealthy would barely notice the impact, but the effect would be transformative, bringing billions back into public coffers. This influx of funds could be used to bolster critical infrastructure and services, such as:
- Schools and education
- Hospitals and healthcare
- Affordable housing initiatives
As the federal election looms on the horizon, Oxfam is urging political leaders across the spectrum to take decisive action, ensuring that the super-rich pay their fair share of taxes. Morgain emphasizes that there is no other way to achieve a more equitable distribution of resources and opportunities within Australian society.
The Trillionaire Trajectory: An Alarming Forecast
The rapid acceleration of billionaire wealth is not limited to Australia. Oxfam’s global projections paint an even more alarming picture. Last year, the organization predicted the emergence of the world’s first trillionaire within a decade. However, with the current pace of wealth accumulation, this timeline has been revised, and Oxfam now expects to see at least five trillionaires within the same timeframe.
As Australia grapples with the challenges posed by extreme wealth inequality, the nation finds itself at a critical juncture. The upcoming federal election presents an opportunity for political leaders to demonstrate their commitment to creating a more just and equitable society. By embracing bold tax reforms and ensuring that the ultra-wealthy contribute their fair share, Australia can take significant strides towards bridging the gap between the billionaire class and the average citizen.
The staggering wealth accumulation of Australia’s billionaires, at a rate of $67,000 per hour, serves as a stark reminder of the urgent need for action. As Oxfam’s report brings this issue to the forefront of public discourse, it is now up to the nation’s leaders to heed the call and implement policies that prioritize the well-being of all Australians, not just a privileged few. The path forward is clear—it is time to tax the super-rich and invest in the future of Australia.
