The information are in, the common Australian is getting richer.
Australian complete household wealth (internet price) rose by a record $735 billion or 5.8% to record a excessive of $13,433.7 billion in the June quarter.
Despite all the challenges Covid has thrown at us wealth is up 19.7% on a yr in the past – the strongest annual achieve in over 11 years.
Average (per capita) household wealth rose by $27,782 or 5.6% in the June quarter to a record excessive of $522,032 – up 20.3% over the yr.
In reality, Australian households have by no means been wealthier.
The twin results of rising residence costs and superannuation balances propelled internet household wealth and wealth per individual to record highs.
A latest report by Credit Suisse estimates that as many as 1.8 million Aussies are thought-about to millionaires immediately, based mostly on estimates of internet household wealth.
And the variety of Australian millionaires is predicted to develop to three,100,000 by 2025.
How is household wealth measured?
Net household wealth is estimated by the ABS by taking the distinction between the worth of a household’s complete belongings and its liabilities or money owed.
So when household wealth will increase, this refers to an total elevate in the worth of household belongings together with residential and funding properties, superannuation balances, shares, and different monetary asset, private financial savings or financial institution deposits, and non-financial belongings like paintings.
Of course, we all know that in the final couple of years wages and salaries progress has been minimal.
On the different hand, those that owned income-producing belongings such as residential actual property or shares have seen a major enhance of their internet wealth.
There is nothing new about this…
You can’t save your method to wealth via your revenue.