While millions of Australians struggle with rising prices and stagnant wages, the country’s richest have seen their fortunes soar. A new Oxfam report is calling for a tax on billionaires, warning that unchecked wealth growth is fuelling dangerous levels of inequality.
Billionaire Wealth Surges as Inequality Widens
The report, released ahead of the World Economic Forum in Davos, found that the number of billionaires globally has more than doubled over the past decade, while ordinary workers’ incomes have failed to keep pace with inflation. In Australia alone, the combined wealth of the nation’s billionaires has surged by tens of billions of dollars in the past year, even as household budgets tighten.
Oxfam argues that this growing gap between the ultra-rich and everyone else threatens economic stability and social cohesion, reports ABC News. It says governments have become too reliant on consumption taxes and wage-based income taxes, while taxing wealth — through inheritance, capital gains, or assets — has lagged far behind.
The charity’s Australian director, Lyn Morgain, said the country’s tax system has been tilted toward the wealthy for too long, leaving ordinary families to carry an unfair share of the burden.
The Case for a Billionaire Tax
Oxfam’s proposal would introduce a modest tax on the net worth of billionaires and multimillionaires, designed to raise billions in additional revenue each year. The organisation claims the funds could be used to strengthen public healthcare, education, and climate initiatives — all areas hit by years of underfunding.
Globally, Oxfam’s data shows that the richest 1% of people now own nearly two-thirds of all new wealth created since 2020. The report argues that “trickle-down economics” has failed and that governments must actively redistribute wealth to avoid deepening inequality.
Critics Warn of Unintended Consequences
Not everyone agrees with Oxfam’s plan. Some economists warn that wealth taxes could discourage investment or push capital overseas. They argue that reforms should focus on tightening loopholes, ensuring multinational corporations pay their fair share, and improving income tax progressivity rather than introducing new levies.
Supporters counter that many billionaires already shift profits offshore and that without stronger laws, the tax base will continue to erode. They point to countries like France and Norway, where wealth taxes have been used — with mixed success — to narrow inequality.
The Bigger Picture
Oxfam’s report comes at a time when global attention is focused on inequality and fairness. With living costs climbing and wage growth stagnant, the debate around who pays what — and how much — is intensifying.
In Australia, the report’s message is clear: the gap between rich and poor isn’t closing on its own, and the tax system may be the government’s most powerful tool to fix it.
