Australia’s household wealth hits $1m for the first time

Superannuation and rising property values have worked hand in hand to drive Australia’s average household wealth past the $1 million mark for the first time in history. This is a 37% increase from a decade ago.

Both rising property values and superannuation balances almost doubling over the past 12 years are the primary contributors for the nation’s increased household wealth.

According to the Australian Bureau of Statistics (ABS), it isn’t just the rich driving up this average. Income and wealth inequality have remained stable since 2013-2014 and the distribution of wealth between the rich and poor improved marginally over this period. ABS Chief economist Bruce Hockman reflected that the main driver of inequality is the ownership of property.

Michael Sukkar, Federal Minister for Housing and Assistant Treasurer said that the Coalition’s jobs creation and tax cuts were contributing to Australia’s rising wealth.

“most recently, our tax relief measures are allowing hardworking Australians to keep more of what they earn. And with most people’s wealth invested in the family home, the government is also ensuring our property market remains stable while encouraging first home buyers to get a foot in the property ladder.”

Higher household wealth, the relaxing of APRA lending rules and the current low interest rates will together enhance stability in Australia’s property market and continue to raise living conditions for both the rich and poor.

This is a summary of the article Household wealth hits $1m mark by Matthew Cranston published in the Australian Financial Review on 13-14 July 2019, Page 3.