Latest data by Productivity Commission reveals that those born after 1990 are experiencing a slow income growth. Pixabay

Economic mobility in Australia is ranked among the best in the world, but the scenario may be changing as the income growth for those born after 1990 is showing signs of stagnating, according to the latest report Productivity Commission (PC).

Australia is considered to be the land of fair go, which means people could leverage their talents and the opportunities available to them to get ahead.

Nearly two-thirds of Australians born between 1972 and 1982 earned more than their parents did at the same age. However, latest data by the Productivity Commission reveals that those born after 1990 are experiencing a slow income growth, ABC News reported.

"Weak income growth for people born in the 1990s reflects the poor economic outcomes experienced by younger people following the global financial crisis (GFC)," the report said.

The PC report draws data from sources such as Australian Bureau of Statistics and the Household, Income and Labor Dynamics in Australia (HILDA) to conclude that economic mobility is ranked just below Sweden, but far ahead of the U.S. for the majority of Australians.

The report records a steady rise of poverty since 2001. An estimate of 14% of the people are poor, which means that one in 10 Australians is living in persistent poor conditions.

Wealth mobility is yet another challenging factor, despite most people enjoying a high economic mobility. "Only one in five people move from the bottom two deciles into the top half of the distribution over the period 2002 to 2022, and similarly, only one in five fall out of the top half of the distribution," the report said.

According to The Guardian report, the commission found that when a woman split from a partner, her disposable income decreased, whereas the man's remained unaffected. It could be attributed to women shouldering a greater burden of caring responsibilities when compared to men. And, it takes them five to six years to recover the household income.

Falling ill affects your income, especially those in the socioeconomic scale. A health problem or a personal injury brings down the income by 6% in the year after the incident, or by 4% if it's a long-term health condition.