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The goal of equity in personal income distribution


The Australian government's goal in this area is threefold:


  1. To ensure that all Australians have sufficient income to purchase those goods and services that enables them to have a 'dignified' standard of living.  Where a dignified standard of living involves households being able to afford the goods and services that allows them to live in our affluent and modern society with some 'dignity' and 'self respect'.  
  2. To ensure there are no persons or households in Australia experiencing absolute poverty, defined as the situation where one can't afford to purchase the goods and services necessary for survival.  
  3. To ensure that huge or obscene inequalities in incomes (and to a lesser extent wealth) are avoided.


It is important to note that the government is not trying to seek total equality.  This is because inequality is a necessary feature of a 'capitalist' system that is underpinned by individual desires to maximise personal income and accumulate wealth.


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