Australian Economy

Is the household income shock over?

Leith van Onselen
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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.

Real per capita HDI

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

Quarterly HDI per capita

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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.