Social cohesion — Australia · Synthesis

Moderate inequality. The Gini coefficient of disposable income stands at around 0.32 (OECD), a moderate level, higher than France and Germany but lower than the United States and the United Kingdom.

A universal funded retirement system. Australia has a compulsory funded retirement system ('superannuation'), which has built massive retirement savings — an original model, but one whose benefits are unequal (low-income earners and women accumulate less).

Deep Indigenous disadvantage. The deepest fracture is the disadvantage of Indigenous peoples (Aboriginal and Torres Strait Islander peoples): gaps in life expectancy (see Health category), income, employment, education and over-incarceration (see Justice category) — at the heart of the 'Closing the Gap' strategy. The 2023 referendum on an Indigenous 'Voice' to Parliament was rejected.

Housing, a growing inequality factor. The housing affordability crisis (see Housing category) widens the gap between homeowners (often older, helped by tax policy) and young renters — a major intergenerational inequality issue.

A multicultural society. A highly diverse society owing to immigration (see Immigration category), Australia displays generally good cohesion, but with disparities for certain groups and Indigenous disadvantage as a major exception.

Reducing Indigenous disadvantage. Closing the gaps affecting Indigenous peoples ('Closing the Gap') is the central challenge, with slow progress, following the failure of the 'Voice' referendum.

Housing and generations. Restoring housing affordability is decisive for reducing intergenerational inequality and young people's sense of downward mobility (see Housing category).

Superannuation equity. Reducing inequalities in retirement savings accumulation (low earners, women) is an equity challenge for the funded system.

Cost of living. Protecting the purchasing power of lower-income households against the cost of housing and energy (see Prices category) is a cohesion challenge.

The open questions. Three issues will shape the period: (1) reducing Indigenous disadvantage; (2) restoring housing affordability; (3) improving the equity of superannuation.

Placed in context, Australia displays moderate inequality but deep Indigenous disadvantage and housing-driven intergenerational inequality.

Three lessons. (1) Inequality: moderate. With a Gini of ≈ 0.32, Australia sits between France (≈ 0.29) and the United Kingdom (≈ 0.35), far below the United States (≈ 0.39-0.41).

(2) Indigenous disadvantage. Like Canada, Australia presents a deep gap for its Indigenous peoples, with no direct equivalent in Europe.

(3) Intergenerational inequality. The housing crisis widens the gap between generations, a challenge shared with Canada and the United Kingdom but particularly acute.