Income distribution in Sydney is increasingly skewed, with the top 1% in wealthy areas like the eastern suburbs and inner city now earning 12.2% of all personal income.

The wealth gap has widened over the past decade, as the top 1% in the east increased their earnings share, contrasting with stable income inequality in the western suburbs.

The concentration of high-income jobs in Sydney's CBD and eastern suburbs is a major driver of this disparity, pushing property prices up and exacerbating the cost of living for lower-income residents.

Policy intervention is suggested to address the growing income inequality and to support those financially struggling due to these economic conditions.

There is a stark contrast in average personal incomes within Sydney, with the highest average in Woollahra at $209,607 and the lowest in Auburn North at $44,283.

The disparity is further highlighted by the fact that in Eastwood, the top 1% takes 35.5% of the suburb's income, whereas in the western suburb of Hasselgrove-Plumpton, the top 1% earns just 3.6%.

Sydney's position as a central financial and insurance hub for the Asia-Pacific region significantly contributes to the uneven income distribution.