Melbournes Richest and Poorest Suburbs

[Guest The Pom Queen]

The divide between Melbourne's richest and poorest suburbs is widening.

New data shows average incomes are growing much faster in the wealthy inner-east and south than in less advantaged outer areas.

The growing gap is broadly consistent across the city's 10 wealthiest and 10 poorest suburbs, measured by income.

With the exception of Portsea, the richest areas could be found in a band between Kew and Canterbury in the east down to Albert Park and Brighton on the bay. They recorded average income growth of between 63 and 94 per cent.

Incomes also rose in the poorest areas but, with the exception of Rosebud West on the Mornington Peninsula, at a slower rate.

Grouped in clusters in the south-east, north-west and west, these suburbs – including Broadmeadows, Doveton and Frankston North – had an average rise of between 35 and 51 per cent.

Grattan Institute chief executive John Daley said the data matched work by the think tank showing Melbourne was becoming more segregated between the "haves" in the city and the "have much less" further out.

The gap applies not just to income and income growth, but also education levels and female workforce participation rate.

"Yes, that segregation is going on, and yes, that's a problem," Mr Daley said.

He said there was also a growing gap in incomes within postcodes in Melbourne, particularly in the inner-city.

But he stressed the level of inequality in Australia was nowhere near as pronounced as in the US. Incomes in poorer suburbs in Australia grew by about 30 per cent over a decade. In America, wages have not increased for the bottom half in that time.

The gap between Melbourne's richest and poorest suburbs is growing fast. Photo: Paul Rovere

Monash University senior economics lecturer Gennadi Kazakevitch said the growing inequality was consistent with international trends, though the gap was generally less in Australia than elsewhere. 

In terms of inequality and welfare safety nets, Dr Kazakevitch said Australia lay exactly in the middle between the US and northern Europe. He said a key question was whether living standards for those on lower incomes were increasing.

For no obvious reason, the largest and the smallest growth in incomes over the 11 years were recorded in nearby suburbs in Melbourne's outer north.

The residents of Yarrambat enjoyed an average 124 per cent jump in what they earned, from nearly $40,000 to almost $90,000.

But the people of Wollert, just 10 kilometres away, saw their incomes creep up only 2 per cent to $48,716.

The list of the 10 highest-earning Melbourne postcodes remains much the same as it did about a decade ago, but there has been one drop-out. 

Postcode 3004, which takes in the section of the city that looks out on St Kilda Road, was ranked six for average taxable income back then, but it has been left behind by other affluent postcodes and now ranks at number 23.

 

Melbourne's 10 highest-earning postcodes

Postcode	Area	Average income
3142	Toorak	173,808
3944	Portsea/Blackwarry	156,669
3186	Brighton	124,009
3206	Albert Park	119,353
3144	Malvern/Kooyong	115,791
3126	Canterbury	115,520
3002	East Melbourne	114,843
3143	Armadale	107,661
3101	Kew North/Studley Park	99,748
3141	South Yarra	98,625

 

And the 10 lowest-earning postcodes

Postcode	Area	Average income
3171	Springvale	36,421
3048	Coolaroo/Meadow Heights	37,593
3047	Broadmeadows/Dallas	37,610
3177	Doveton	38,991
3021	St Albans East/Kealba/Kings Park	39,793
3061	Campbellfield	40,117
3019	Braybrook	40,139
3200	Frankston North	40,392
3174	Noble Park	40,574
3940	Rosebud West	40,816

Data: Australian Taxation Office. Figures are for taxable income in 2014/15. 

[starlight7]

Portsea would be 'second homes', or holiday houses I think. My daughter's parents have a place there(holiday house) and bought it cheaply over 10 years ago- now worth well over a mill.  Funny how things go. One of my daughters bought a place in Mt Waverley which is now worth 2.5 mill - ridiculous but v.nice for them. 

[Guest The Pom Queen]

I'm surprised Springvale was on there, I wouldn't want to live there but I would have thought there was a lot of foreign and older money. 

Frankston North and Doveton I totally agree with I think 99% of people are probably on Centrelink. Actually I'm probably being unfair as it's years since we lived down there.

 

 

[starlight7]

Morwell is baaaad. Taken over from Moe.