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
Reduction in income inequality before and after tax in Australia, 2012–2020
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
| 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
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2010s | 29.5% | 28.4% | 30.2% | 4 |
| 2020s | 27.7% | 27.7% | 27.7% | 1 |
Countries ranked near Australia
More poverty & inequality data for Australia
- Number of income/consumption surveys in the past decade available via the World Bank 3 surveys (2025)
- Number of income/consumption surveys in the past decade available via 0 surveys per person (2025)
- Number of income/consumption surveys in the past decade available via 0 surveys per US$ of GDP (2025)
- Fertility rate vs. share living in extreme poverty 1.64 live births per woman (2023)
- Cereal yield vs. share in extreme poverty 2,690 kg per hectare (2024)
- Cereal yield vs extreme poverty, per unit of GDP 0 units per US$ of GDP (2024)
- Cereal yield vs extreme poverty, annual growth rate -0.0446 % change on previous year (2024)
- Tax revenues vs income inequality, gaps filled 30.36 (2022)
- Tax revenue as share of GDP vs. income inequality 30.4% (2022)
- Tax revenues vs income inequality, per unit of GDP 0 units per US$ of GDP (2022)
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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About this data
This is the percentage difference between the Gini coefficient before taxes and benefits and the Gini coefficient after taxes and benefits.