Is the household income shock over?

Australians experienced the developed world’s largest decline in real per capita household disposable income, which fell by more than 8% between mid-2022 and mid-2024.

Wednesday’s national accounts release from the Australian Bureau of Statistics (ABS) revealed that the income recession is over, with real per capita household disposable income jumping by 1.8% in the year to Q1 2025:

Real per capita household disposable income annual change

Quarterly real per capita household disposable income is now tracking 6.2% below its Q1 2022 peak:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.