Most Australians support higher taxes on high-income earners and redistribution to disadvantaged households, especially among informed voters and those with far-right political views.

When Australians are informed about the true wage gap, including far-right voters, their support for higher taxes on the wealthy and social spending increases.

These findings highlight the risks of a tax system based on misinformation about wage disparities and reveal societal tolerance for excessive executive pay while many workers are left behind.

A new study shows Australians significantly underestimate the wage gap between CEOs and regular workers, believing it to be seven times, while in reality it exceeds 100 times.

The study emphasizes that the public's underestimation of the wage disparity contributes to misconceptions about inequality and influences policy debates.

Growing support for reforms addressing wage inequality is driven by the realization that current perceptions obscure the true extent of disparity, prompting calls for tax and redistribution policies.

Australians prefer a much smaller pay gap of only three times between CEOs and workers, indicating a desire for more equitable pay and potential tax reforms.

If public preferences were implemented, CEO pay could be reduced significantly, aligning pay ratios more closely with societal expectations.

Better public understanding of wage inequality could lead to increased political pressure for higher taxes on the wealthy, as misinformation currently influences policy debates.

Australian CEOs earn over 100 times the average worker, a ratio higher than in many Asian and European countries, with some of the highest ratios in Britain and the US.

Notable Australian CEOs like Victor Herrero and Shemara Wikramanayake earned $39.6 million and $29.8 million respectively last year, highlighting the significant pay gap.

Global comparisons show Australia’s CEO pay ratio is 100:1, which is high but still lower than the US and Britain, where ratios reach 214:1 and 269:1.