Economic analyst, Ross Gittins, reported in The Age (‘The Truth of the Rich-Poor Divide’ 29/10/03) on the work of Professor Peter Saunders and the Social Policy Research Centre at the University of NSW. The calculations are based on Australian Bureau of Statistics figures and the full report is published in the Australian Journal of Social Issues published by the Australian Council of Social Service (http://www.acoss.org.au).

Over the period from 1995-96 to 2000-01 real incomes rose for all categories of households, rich and poor. ‘The real, after-tax incomes of people living in the poorest 20 per cent of households rose by $12 a week per person. For the second poorest 20 per cent, incomes rose by $26 a week per person. For the middle 20 per cent it was $45 a week. For the second richest ``quintile" it was $59 a week and for the richest 20 per cent it was $130 a week.’ (Gittins)

To clarify this, if each groups increase is calculated as a percentage of the income of that group then the poorest quintile had a rise of 7 per cent, the middle quintile rose 12 per cent and the richest quintile rose 17 per cent.

Finally, what percentage of income do these various groups have? The poorest 20 per cent of households have just 8 per cent of all the income. The next poorest quintile has 12 per cent, the middle quintile has 18 per cent, the second richest quintile has 24 per cent and richest 20 per cent have 38 per cent.