AUSTRALIA'S reputation as an egalitarian society is at risk, with the gap between rich and poor widening.
Research shows income inequality at its greatest level ever, with the top fifth of households now receiving 49 per cent of all earnings while the bottom fifth gets just 4 per cent. 
"Australia has long been -labelled the land of the middle class but the latest analysis of the Australian Bureau of Statistics wealth and income data shows that this is less the case today," social demographer Mark McCrindle said.
"We've seen a constant slide in equitability and a contraction of the middle class.
"Core to our identity as a nation is an egalitarian society. But it is under threat. If it continues, it does start to redefine the character of Australia and you'll find entrenched groups of haves and have-nots." Average annual household income is $107,000. But the top two million pull in more than twice that at $260,000 - 12 times the $22,000 earned by the bottom two million.
In the past decade, most household groups have seen income increases of 18-19 per cent. But the highest fifth has risen 30 per cent.
When it comes to net wealth, the gap is even greater.
The top fifth of households own 62 per cent of the country's private wealth. Their average net wealth is $2.5 million - a massive 71 times the $35,000 average in the lowest fifth.
The average household wealth nationally is $830,600 - but you have to reach the top 40 per cent to have that.
Mr McCrindle said reasons for the growing inequality include Australia's "miraculous" economic growth over 50 years but the biggest factor was the huge increase in property values. "We've seen family homes double in value in a decade and that has shut some people out. Those who own two or more properties have seen their wealth increase substantially and those without fall behind."Mr McCrindle said there was dissatisfaction over the -disparity - and fears for children's future - but realisation over the extent of the divide had not fully hit home yet.