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Poverty, inequality and social welfare are defined in this book. Previous poverty studies are surveyed and a new index of poverty is developed based on everyday meanings, and stressing the individual and relative nature of poverty. Previous definitions of inequality and welfare are described and the relations between them and poverty are explored. New estimates of poverty are made for Australia. Conclusions are derived from comparisons between measured levels of poverty over time and across family types. Previous Australian studies of inequality and welfare are surveyed and new estimates are made for Australia for recent years.