Thank you for the opportunity to address you today. I acknowledge the Gadigal people of the Eora nation and pay my respects to all First Nations people present. Their connection to community and country reminds us of our ongoing responsibility to care for each other.
The Gospel of Matthew teaches us powerfully:
‘Truly, I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me.’ (Matthew 25:40)
This teaching resonates deeply with Australia’s ideals of fairness and community. Yet, our society today faces a significant challenge: inequality. Inequality matters profoundly – not just economically, but morally, socially, and spiritually. It shapes opportunities, influences life outcomes, and determines who shares in our national prosperity.
In reflecting upon inequality today, I’d like to begin with a thought experiment developed by the Dutch economist Jan Pen.
Imagine all Australians marching in a one‑hour parade, their height reflecting their wealth.
At first, you wouldn’t see anyone – the poorest Australians, submerged by debt, would be underground. Several minutes would pass before you see people the height of tiny insects, representing those with minimal savings and precarious jobs. At half‑time, the parade participants would be barely waist‑high, reflecting an average wealth level that is far below what many expect.
It isn’t until the last few minutes that the parade gets dramatic. Australians become giants, several metres tall, owning investment properties and multiple cars. In the last seconds, billionaires appear, their heads literally in the clouds. The richest Australian would tower over 46 kilometres high – far above Mt Everest.
This image vividly captures the scale and drama of inequality in Australia today.
The historical journey of Australian inequality
Yet it was not always like this. As I documented in my book Battlers and Billionaires, Australian history shows fluctuations in inequality, shaped by policy, events, and the collective actions of citizens.
When British settlers first arrived in 1788, inequality was limited – not due to idealism, but survival. Governor Arthur Phillip’s invitations to dinner famously concluded, ‘Please bring your own bread,’ reflecting the scarcity of resources and the reality that inequality was limited by necessity.
Yet inequality quickly rose through the nineteenth century, driven by land distribution favouring the wealthy. Under Governor Lachlan Macquarie, who ruled the colony from 1810 to 1821, more than half the land granted went to just the top 10 per cent of settlers. By the late nineteenth century, disparities between landowners and labourers were immense. Historian Stuart Macintyre describes colossal extremes between the luxurious life of pastoralists like Richard Casey and the hard labour endured by workers like Jock Neilson, who struggled through bush labour with minimal wages and harsh living conditions.
The early twentieth century brought change. In 1907, the Harvester Judgement established a basic wage designed to lift families out of poverty. Australia saw the creation of institutions such as the Commonwealth Conciliation and Arbitration Court, introducing worker rights into the national conscience. Still, stark inequalities remained, with large segments of society excluded from prosperity.
However, the post‑war period between the 1940s and 1970s marked what economists call the ‘Great Compression.’ Strong unions, progressive taxation, expanded public services, and affordable housing policies dramatically reduced inequality. For several decades, Australians experienced significant upward social mobility and rising standards of living for the majority.
Yet since the 1980s, Australia has seen what economists describe as a ‘Great Divergence,’ reversing the gains of earlier decades. Today, the top 1 per cent of income earners receive nearly 10 per cent of national income, nearly doubling their share from 40 years ago. Wealth inequality is even more extreme, with the richest fifth owning more than 60 times the wealth of the bottom fifth.
This widening gap is not just economic – it profoundly affects people’s everyday lives. Those at the bottom face greater health challenges, including a stark difference in life expectancy – Australians in the richest fifth of the population live an average of 6 years longer than those in the poorest fifth. The poorest Australians have 7 fewer teeth on average due to poor dental care. In education, the wealth gap translates into substantial resource disparities between affluent and poorer communities.
Why inequality matters
Inequality does not simply represent a difference in wealth; it shapes our society. Excessive inequality erodes social cohesion, reducing empathy and undermining community bonds. When wealth is concentrated among a few, society becomes fragmented. Our sense of collective responsibility diminishes, and the fabric that binds us as Australians weakens.
Catholic social teaching stresses the inherent dignity of every person, the importance of community, and the imperative to act justly towards one another. From Pope Francis’ call for inclusive economies to teachings on the common good, Catholic faith underscores the urgency of addressing rising inequality.
For too many Australians, the promise of a fair go – the belief that effort and hard work determine success, not birth or background – has felt increasingly out of reach. Inequality is not just an abstract economic issue; it affects our communities, our health, our opportunities, and our sense of national cohesion.
No government is perfect, but I want to argue today that ours has done more to address inequality than any government in well over a decade.
Taking office 3 years ago, on the tail of the Covid pandemic, we have acted decisively to ensure that prosperity is shared more fairly across our society.
Lifting wages and supporting secure work
One of the most direct ways to reduce inequality is by lifting wages and ensuring job security. Since coming to office, the Albanese government has delivered consecutive wage increases for 2.6 million Australians, particularly benefiting low‑ and middle‑income earners. These pay rises ensured that minimum wage workers were not left behind as the cost of living rises.
Furthermore, our government has tackled insecure work by introducing stronger protections for casual employees who want to transition to permanent work, establishing minimum standards for gig economy workers, and enforcing ‘same job, same pay’ provisions to prevent labour hire workers from being exploited. These reforms help ensure that Australians can rely on stable incomes, reducing the financial precarity that fuels inequality.
A fairer tax system
Tax policy plays a crucial role in shaping economic fairness. The Albanese government has delivered tax cuts that benefit every Australian taxpayer, allowing people to keep more of what they earn while ensuring that the system remains progressive.
This approach contrasts with our predecessors, whose tax policies disproportionately benefited the highest earners, widening the gap between rich and poor. By maintaining a fair and responsible tax structure, we can fund essential public services while ensuring that the most fortunate Australians contribute their fair share.
Strengthening the social safety net
A strong, targeted welfare system is essential to reducing inequality, and our government has taken decisive action to support those who need it most. We have increased JobSeeker and other income support payments, ensuring that Australians doing it tough can afford the basics. Recognising the unique challenges faced by older Australians, we have also expanded eligibility for higher JobSeeker rates for those over 55, providing more security and dignity in later years.
Rent assistance has been increased by over 40 per cent, helping Australians struggling with rising housing costs. Single parents have received greater support through extended access to the parenting payment, making it easier for them to balance work and caregiving responsibilities without falling into poverty. These targeted measures lift Australians up rather than trapping them in cycles of disadvantage.
Investing in affordable housing
Housing inequality is one of the most pressing economic issues facing Australia today. The Albanese government has responded with the largest investment in social and affordable housing in more than a decade. Through the Housing Australia Future Fund, we are building over 55,000 new social and affordable homes, directly addressing homelessness and housing stress.
Beyond construction, we have strengthened renters’ rights, introducing minimum rental standards, limiting rent increases to once per year, and requiring genuine grounds for eviction. By making renting fairer and ensuring more Australians have access to stable, affordable housing, we are creating a foundation for economic security and social mobility.
Early childhood education and skills training
Breaking the cycle of inequality starts with education. That’s why we have delivered cheaper childcare for 96 per cent of families with children in early education – an investment that not only reduces financial strain but also ensures that more children, regardless of their family’s income, start life with the educational support they need.
In schools, we have delivered on the promise of the Gonski report by ensuring that all schools are funded to the schooling resource standard. This isn’t just about money, it’s about delivering the resources required to drive reform. We know that Australia’s OECD PISA scores have been slipping backwards for the past quarter‑century. If we do not turn this around, the most vulnerable stand to suffer most.
Our government has also committed to over half a million fee‑free TAFE places, ensuring that Australians can gain the skills needed for secure, well‑paying jobs. By making education more accessible, we are expanding opportunities for people from all backgrounds, ensuring that no one is locked out of good jobs because they cannot afford the necessary training.
Fairer pay for women
We cannot talk about overall economic inequality without considering gender inequality. The Albanese government has delivered historic pay rises for aged care and early childhood education workers – sectors dominated by women – while expanding paid parental leave to 26 weeks by 2026 and adding superannuation to government‑paid parental leave. These measures help to close the gender wealth gap, ensuring that women are not financially penalised for caring responsibilities. The gender pay gap is still too high, but it is also at an all‑time low.
Tackling the cost of living
Inequality is exacerbated when basic essentials become unaffordable. That’s why we have delivered targeted cost‑of‑living relief, including $300 in energy bill relief for every household and cheaper medicines that allow millions of Australians to buy 2 months’ worth of prescription medication for the price of one. We have also ensured that HECS‑HELP loans will never grow faster than wages, reducing the financial burden on young Australians starting their careers.
Another major reform is our work in the energy sector. By expanding investment in renewable energy and breaking down barriers to new market entrants, we are reducing energy costs for consumers while ensuring a transition to a cleaner economy. High energy prices disproportionately impact low‑income Australians, and our efforts to foster a more competitive and efficient energy market are directly reducing cost‑of‑living pressures.
Historically, reducing inflation in Australia meant higher unemployment. In the 1970s, 1980s and 1990s, bouts of inflation were met by job losses. Often, it took a recession to bring prices under control. Yet this time is different. Uniquely in Australian history, we have brought inflation under control while maintaining what economists call ‘full employment’. We have tamed inflation while creating over one million jobs. Unemployment remains low, and the participation rate is at a record high. This is a remarkable achievement for our nation.
Investing in health equity
Health disparities are one of the most damaging consequences of inequality, with lower‑income Australians facing shorter life expectancies and higher rates of chronic illness. Our government has made the largest investment in bulk billing in Medicare’s history, restoring affordable access to GPs for millions of Australians. We have also established new urgent care clinics and expanded mental health services, ensuring that healthcare is based on need, not wealth.
Competition reforms to reduce inequality
A truly fair economy is one where businesses compete on a level playing field, ensuring that consumers and small businesses are not left behind. Monopolies increase inequality by transferring resources from consumers (the many) to shareholders (the few). The Albanese government has prioritised competition reform to prevent market concentration from deepening inequality.
One of our key achievements has been strengthening competition in the grocery sector. By increasing regulatory oversight and cracking down on anti‑competitive behaviour by major supermarket chains, we are ensuring fairer prices at the checkout. We know that when competition declines, consumers pay more, and smaller businesses struggle. Our policies ensure that Australian families are not subject to artificially inflated food prices while smaller retailers have a fair chance to succeed.
Through the biggest overhaul of merger laws in half a century and a revitalised National Competition Policy, we are putting downward pressure on prices and increasing fairness. This approach reflects our commitment to an economy that works for everyone, not just those at the top.
A commitment to evidence‑based solutions
A key principle of our government is ensuring that policies are grounded in evidence, not ideology. That is why we have created the Australian Centre for Evaluation, and committed to expanding the use of randomised trials in policymaking, ensuring that every dollar spent on social programs delivers real results. By rigorously evaluating what works, we can scale up the most effective initiatives, ensuring that public investment leads to meaningful reductions in inequality.
Conclusion: a shared moral and national imperative
Inequality is a profound challenge – but not insurmountable. Australian history reminds us that inequality is never inevitable. It expands or shrinks based on the decisions we make collectively as a society.
There is much more to do, but I have given you a flavour today of what we have already done together. The Albanese government has chosen to lift wages, invest in housing and education, strengthen social protections, reform competition, and deliver targeted cost‑of‑living relief. These policies lift people up – not just economically, but socially and morally.
As the Gospel of Matthew reminds us, true compassion is measured by our actions towards ‘the least of these.’ We must constantly ask ourselves: Are our policies fair? Are our communities inclusive? Is every Australian being given the chance to thrive?
The Albanese government is committed to answering these questions positively – not just with words, but through meaningful action. Together, we can create a society where dignity, justice, and opportunity are the lived reality for every Australian.