This note assesses changes to the structure of the Australian economy by analysing the share of national income (factor income) that is attributed to workers (labour income), owners of capital (capital income), and family businesses and the self-employed (mixed income).
- In the last five years, the corporate share of national income has increased from 26.5 to 28.5 per cent, which has come at the expense of family businesses and the self-employed, which declined from 8.75 per cent to 7 per cent.
- This is in line with the long run trend from 1960, when corporate share of national income 16.4 per cent and the family business and self-employed share of national income was 26 per cent.
- This means since 1960, the corporate share of national income has almost doubled, while the share for family businesses and the self-employed is today less than a third of what it was in 1960.
- This is in line with the long run trend from 1960, when corporate share of national income 16.4 per cent and the family business and self-employed share of national income was 26 per cent.
- Between 2020 and 2023, family businesses and the self-employed lost $149 billion, and workers lost $215 billion, in foregone compensation due to the relative decline in their share of factor income.
Figure 1: Components of factor income
