Top 10% hold half of Australia’s wealth

The Roy Morgan Wealth Report 2019 has been released, which shows that owner-occupied housing accounts for half of Australia’s personal assets. The Report also shows that the wealthiest 10% of Australians hold nearly half of the nation’s wealth:

Key Findings:

Australians’ per capita gross wealth increased in real terms between 2007 (i.e. pre-GFC) and June 2019 by 20.9%, from $306,100 to $370,200.

However, the strong growth generally seen over this period has stagnated in the last six months. In fact, we have begun to see a decline, with per capita gross wealth dropping by around $5,000 (1.4%) from the first to the second quarter of 2019.

Owner occupied homes currently account for $4,944 billion, or around half (50.1%), of Australians’ personal asset value.

The growth in Net Wealth is possible because, although debt is growing, it’s growing more slowly than the growth in assets. In real terms, from 2007 to 2019 Australians’ per capita debt increased by 13.7% while assets grew by 20.9%.

The share of Net Wealth held by women is growing, but there is still a gender gap. In 2007, the Net Wealth held by women was 81.9% of that held by men. By June 2019, this had risen to 91.4%.

Globally, the richest 10% of the population hold 47% of the wealth; that figure is matched almost perfectly in Australia, with the wealthiest 10% of the population holding 47.3% of Net Wealth. Meanwhile the bottom five deciles, a full 50% of our population, have just 3.6% of Net Wealth. And inequality has increased, rather than decreased, between 2007 and 2019.

You can see from the next chart that wealth inequality has worsened since the GFC:

The top 10% now hold 47% of net wealth in Australia, an increase of 0.5%.

The bottom half of the population now holds just 3.6% of the country’s net wealth, a decrease of 0.9%.

Unconventional Economist
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Comments

      • No. That’s the AVERAGE wealth of the top 10%. The entry point would be much lower. More like $1.2-1.3m would be my guess.

    • Mining BoganMEMBER

      I’m sitting a bit outside the top 10% yet my life seems povo compared to probably 80% of what I see.

      I guess I’m saying it doesn’t matter what the number is when debt is more useful than wealth.

      • I’m also just outside the top 10% (although I’m in if i include super) however like most Aussies my wealth is trapped in a bloated housing valuation, my wife and I joke that we still feel poor – most of our pay gobbled up by mortgage, bills and kids.

    • lol, yep what an absolute load of crap. I argue with my old man, a dyed in the wool Howard Liberal, that if he were starting out today he would probably be living in houso. He left school at 13 to work as an airport porter his whole life, Mum was a secretary and they had 4 children. Now they are retired boomers with 3 properties in the Sutherland Shire. Nowadays a married couple like that with kids would be lucky to get a loan and if they did would barely pay off a red brick flat in Mt Druitt.
      Have a go, get a go my @rse

  1. The tragedy is the electorate have been told via MSM, Labor lost the election because they targeted the wealthy.

  2. The percentile breakdown of that top 10% probably looks just like the breakdown of 100% as well.

    That’s why people well into that top 10% don’t “feel” like they are.

  3. This article explains well why most people who make it into the top 10% of wealthholders (I finally entered this category as an old man 3 years ago as a result of some successful gambling with my redundancy package and super) do not feel rich. In my youth my family were firmly planted in the bottom 10%.

    “Australians believe it takes $5.3 million to be rich. THERE’S a magic number that means you’re officially rich. And it’s not about the value of your house, but how much you’ve got stashed in the bank.”

    https://www.news.com.au/finance/money/wealth/australians-believe-it-takes-54-million-to-be-rich/news-story/1ba18234b8044f3fa387474e9dcb2315

    I am still working on trying to feel wealthy – perhaps I will get there when I am 75-80 years old, as long as my sharemarket gambling habits do not take me down, as they have in the past. Its been a bit of a roller coaster ride. My son complains that he is worried that I may gamble away his inheritance.