Richest get the lion’s share of nation’s wealth, report shows

• Richest 20pc of families own 60 times more wealth
• Survey finds poorer women have more babies
• Build your wealth: Saving for set goals

AUSTRALIA is not the land of the fair go for all, a major government report has found.

The richest 20 per cent of Australian families own 60 times more wealth than the poorest 20 per cent, the 2008 Families in Australia report shows.

As parents begin spending the Government’s recession-busting bonuses, enjoy tax cuts and more generous childcare rebates, the financial state of some families remains dire.

High-flyers, who each own more than $750,000, have 61 per cent of Australia’s wealth, compared with battlers who each own less than $70,000 and hold just 1 per cent of the country’s wealth.

And this is despite household income increasing by more than one-third over the past decade.

The research also reveals:

POORER women have more children — 2 babies per woman for battlers compared with 1.5 babies for each wealthier woman.

THE bottom quarter of households earn less than $500 a week, compared with the top quarter, which earn more than $83,000, or $1600 a week.

HOUSING debt accounts for 140 per cent of our total income — up from just 80 per cent seven years ago.

ONE-parent families with young children, the unemployed and indigenous families are more likely to be poorer than other families.

Compounding the problems for many families is the rising cost of essentials. Food prices have risen 3.8 per cent and fuel by 8 per cent annually since 1998, both above the 3.1 per cent average CPI.

The report shows we are paying less for recreation, household contents and services, communication and clothing, but more for transport, health, food, housing, alcohol and tobacco, financial services and education.

Debt levels are also rising, with 40,000 home borrowers more than 30 days behind in their repayments, including 15,000 who are more than three months behind.

Our average debt is $79,000, including $2200 on credit cards, meaning one-fifth of us experience trouble paying bills on time, and must seek financial help from family and friends.

The report also charts the changing face of families. We’re having fewer children and having them later in life, are more likely to get divorced and more likely to live together outside marriage.