A recent report from the Productivity Commission revealed that Australians aged 42–48 are more likely to have higher incomes than their parents compared to other generations. The report highlighted that 67 percent of Xennials, born between 1976-1982, earned more than their parents did at a similar age. While each generation typically earned higher individual incomes than the previous generation at a given age, slow growth in recent years has resulted in limited income growth for those born in the 1990s, especially following the global financial crisis.
The report also noted that individuals with lower-income parents were more likely to earn higher incomes than those with higher-income parents. Additionally, men had a higher likelihood of out-earning their parents compared to women. The report found that over 40 percent of individuals in the top or bottom two income deciles in 2001 remained in the same deciles in 2022, indicating limited changes in wealth over time.
Despite income mobility being relatively high in Australia, the report highlighted a rise in poverty, particularly following the COVID-19 pandemic. Around one in seven Australians experienced poverty in 2022, the highest level recorded since 2001. Certain groups, such as people from migrant backgrounds, single parents, and those living in disadvantaged neighborhoods, were identified as being at a higher risk of poverty.
Overall, while Australia has historically been known as the “land of the fair go,” policymakers are urged to target support where it is most needed to address the growing issue of poverty in the country. Please rephrase
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