Tuesday, 16 April 2024
    16
    Jul

    Australia a nation of millionaires

    Average household wealth in Australia has passed the $1 million mark for the first time in our history amid a significant long term increase in property values and superannuation balances, The Australian reports.

    The Australian Bureau of Statistics’ annual Survey of Income and Housing — Australia’s largest survey of income and wealth — released this morning, also shows that inequality has remained stable since 2013-14, despite slow income growth.

    Average household wealth rose by more than 37 per cent in the decade to 2017-18 to reach $1.02m, compared with almost $749,000 in 2005-06.

    ABS Chief Economist Bruce Hockman said the key contributors were property, and increasingly superannuation, with average household super balances almost doubling over the past 12 years.

    “While ABS data has shown that there is a recent downturn in the property market, over the longer term there has been sustained growth (37 per cent since 2005-06),” Mr Hockman said.

    “Over the same time, the average household superannuation balance has almost doubled (90 per cent) from $112,500 in 2005-06 to $213,700 in 2017-18.”

    Mr Hockman said that while there had been a marginal increase in inequality in 2007-08, in the period leading up to the Global Financial Crisis, the distribution of income between households had remained relatively stable every since.

    “Over the past decade income growth has been slow with average weekly household incomes increasing $44 to $1,062 in 2017-18,” Mr Hockman said.

    In comparison, in the four years up to 2007-08 average weekly household income grew by $220 in real terms to $1,018.

    “For low income households there has been an increase of $28 in average weekly household income over the past decade, while for high income households there was an increase of $57.”

    Mr Hockman said there had been a marginal increase in wealth inequality in 2017-18, and wealth continued to be less equally distributed between households than income.

    FULL STORY

    Australia a nation of millionaires for the first time in history (The  Australian)

    Inequality stable since 2013–14 (ABS)

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