Exclusive: Australian Bureau of Statistics did not want to ‘draw attention’ to a bad result for the poorest households, documents show

This article is more than 1 year old

This article is more than 1 year old

References to wealth inequality reaching its peak in 2017-18 were removed from an Australian Bureau of Statistics press release to help craft a “good media story”, according to internal documents.

The emails and drafts show the ABS issued a separate income inequality media release in July to create a narrative of “stable” inequality despite wealth inequality on the rise, with one email noting the ABS did not want to “draw attention” to a bad result for the poorest households.

A spokesman for the ABS has denied any interference by the Morrison government or the suggestion it sought to misrepresent data, which was all strictly factual, arguing media releases “aim to showcase key findings” with journalists free to draw their own conclusions from other data.

On 12 July the ABS published two media releases titled “Inequality stable since 2013–14” and “Average household wealth tops $1 million” which copped criticism for failing to explain that the richest 20% of households have got substantially richer over time.

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In the first release the ABS acknowledged that “there was a marginal increase in wealth inequality in 2017–18 and that wealth continues to be less equally distributed between households than income amongst Australians”.

An earlier draft, produced under freedom of information, states that wealth inequality as measured by the Gini coefficient, “is at its peak now (0.621) since it was first comprehensively measured in 2003-04 (0.573)”, a phrase later deleted after a direction to “focus on income over wealth”.

Another draft states that although the increase in wealth inequality over the previous two years was “not statistically significant … it is a significant increase compared to 2011–12 (0.593) and 2003–04 (0.573)”.

An email on 26 June notes that the lowest quintile has seen “a significant change” from 2015-16 to 2017-18, down from 0.8% of all household wealth to 0.7%, or an average of $37,900 per household down to $35,200. Its unidentified author notes: “I’m not sure that we want to draw attention to this though.”

The phrase “the lowest 20% controlled less than 1 per cent of all household wealth, with average wealth currently at $35,200” was retained in the final release, without noting the deterioration.

The final release also notes “the wealthiest 20% of households still held over 60% of all household wealth, now averaging $3.2 million per household” without noting the growth over time from $1.9 million in 2003-4.

In an email on 7 July, the ABS director of household economic resource surveys notes a person whose name is redacted had suggested two media releases be issued: one for wealth and a second for income data “where we can present more of a story that inequality is stable”.

“She is also requesting that it is this story (inequality stable) that gets tweeted first on the day of release,” it said.

Another undated email suggests the ABS is “still able to craft a good media story despite more recent data showing a changing picture”.

The shadow assistant minister for treasury, Andrew Leigh, accused the ABS of “putting a big pair of rose tinted glasses on their analysis of inequality, presenting a picture to the Australian public starkly at odds with what many households feel today”.

Leigh cited “lacklustre wage growth”, falling living standards and median household incomes that have not grown since 2009 as reasons.

The ABS spokesman told Guardian Australia that “no one from outside the ABS, including the minister’s office, was involved in the development of media releases about this publication”.

“The ABS strongly refutes any claim that it has attempted to misrepresent this data.”

All information was “freely available on our website” including the Gini coefficient for household net worth, he said.

“It is usual practice for changes to be made to media release content during drafting, until finalised. This is a normal iterative process designed to produce both statistically accurate and engaging information.”

Leigh suggested the ABS was indirectly responding to political pressure from “a government who will do anything it can to hide the truth of inequality”.

“You’re entitled to have your own opinion but not your own facts. The Coalition is attempting to have their own facts on inequality.”

As treasurer in 2017 Scott Morrison rejected the suggestion that inequality is getting worse, prompting a backlash from Labor.