Reduction in income inequality before and after tax in Australia

Australia: Reduction in income inequality before and after tax was 27.7% in 2020. ▼ Falling

Latest (2020)
27.7%
Change on year
down 2.6%
World rank
29th
of 39 countries
All-time high
30.2%
in 2014
All-time low
27.7%
in 2020
Years of data
5
2012–2020

Reduction in income inequality before and after tax in Australia, 2012–2020

01020302012201620202012: 29.6 %2014: 30.2 %2016: 29.6 %2018: 28.4 %2020: 27.7 %

Source: OECD (2026) – with minor processing by Our World in Data. Measured in %.

Analysis

In 2020, reduction in income inequality before and after tax in Australia stood at 27.7%. That is the lowest value across all 5 years on record.

The figure is down 2.6% on the previous year and down 6.6% over ten years.

Over the whole period, reduction in income inequality before and after tax in Australia peaked at 30.2% in 2014 and was at its lowest, 27.7%, in 2020.

That places Australia 29th out of 39 countries with data for 2020, putting it in the middle of the range.

Reduction in income inequality before and after tax in Australia, year by year

Annual values for Reduction in income inequality before and after tax in Australia, 2012 to 2020.
Year % Change
2012 29.6%
2014 30.2% +2.1%
2016 29.6% -2.0%
2018 28.4% -4.1%
2020 27.7% -2.6%

Australia compared with similar countries

  • Australia's 27.7% is below the median for high income countries, which is 34.3%, 81% of the median. (36 countries reporting)

Averages by decade

DecadeAverage LowestHighest Years
2010s 29.5% 28.4% 30.2% 4
2020s 27.7% 27.7% 27.7% 1

Countries ranked near Australia

  1. 26 Canada 29.3% compare
  2. 27 New Zealand 28.7%
  3. 28 Latvia 28.1% compare
  4. 30 Bulgaria 26.0% compare
  5. 31 Israel 23.2% compare
  6. 32 United States 22.1% compare

See the full ranking of 39 places →

More poverty & inequality data for Australia

All data for Australia →

Frequently asked questions

What is reduction in income inequality before and after tax in Australia?
Reduction in income inequality before and after tax in Australia was 27.7% in 2020, according to OECD (2026) – with minor processing by Our World in Data.
What is the highest reduction in income inequality before and after tax recorded in Australia?
The highest recorded value was 30.2% in 2014.
What is the lowest reduction in income inequality before and after tax recorded in Australia?
The lowest recorded value was 27.7% in 2020.
How does Australia rank for reduction in income inequality before and after tax?
Australia ranks 29th out of 39 countries with data for 2020.
Is reduction in income inequality before and after tax rising or falling in Australia?
Over the last ten years it is down 6.6%. The long-run trend across the full record is falling.
Where does this Australia data come from?
The figures come from OECD (2026) – with minor processing by Our World in Data, published as part of Reduction in income inequality before and after tax. Statizoid updates them automatically from the source API.

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Reduction in income inequality before and after tax in Australia. Statizoid, drawing on OECD (2026) – with minor processing by Our World in Data. Retrieved 23 September 2026, from https://poverty.statizoid.com/stat/reduction-in-income-inequality/australia/

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About this data

Indicator
Reduction in income inequality before and after tax
Unit
%
Source
OECD (2026) – with minor processing by Our World in Data
Licence
CC BY 4.0 (Our World in Data)
Coverage
39 places, 622 data points, 1976–2024
Last refreshed

This is the percentage difference between the Gini coefficient before taxes and benefits and the Gini coefficient after taxes and benefits.