Profile of each income group by main source of household income
This graph shows the make-up of each income group according to their household’s main source of income. The majority (60%) of people in the lowest 20% income group live in households where the main income is social security payments. However, 40% of people in that income group live in households relying mainly on other income sources, including wages (26%), own business income (6%) and ‘other income’, mainly investments (8%). Towards the higher end of the income scale, 87% of those in the highest 20% income group are in households relying mainly on earnings, and none are in households relying mainly on social security. However, even higher up the scale an increasing share of people live in households rely mainly on investment income – from 9% of the highest 20% income group, to 14% of the highest 10% income group, and 17% of the highest 5% income group.
Average net wealth, by wealth group
This graph shows the distribution of wealth by wealth groups. Wealth is distributed much less broadly than income
2017-18: The average wealth of the highest 20% wealth group is $3,255,000, more than six times that of the middle 20% who had $565,000; and over 90 times that of the lowest 20%, who had $36,000. The average wealth of the highest 5% is $6,795,000.
2015-16: The highest 20% wealth group had average wealth holdings of $2.9 million, more than five times that of the middle 20% wealth group ($537,000) and almost 100 times the $30,000 held by the lowest 20% wealth group.
Trends in average wealth by wealth group
This shows changes in the 'real value' (after inflation) of net household wealth. Wealth inequality increased more sharply than income inequality between 2003-04 and 2015-16. Click here to see the income inequality trends.
The average wealth of the highest 20% wealth group rose from $1.9 million in 2003-04 to $2.6 million in 2009-10, declined to $2.4 million in 2011-12 (after the Global Financial Crisis) and rose again to $2.9 million in 2015-16. Trends in the value of wealth holdings of the remaining 80% changed much less in comparison.
Shares of national wealth by wealth group
This graph shows how wealth is divided up among households. This probably underestimates of the true extent of wealth inequality. The wealthiest 1%, who own a disproportionate share of all wealth, are a small number of people and so are underrepresented in household surveys. It is also likely that many under-report their wealth.
See the pie chart showing shares of income by income group.
2017-18: The wealthiest 20% holds 64% of all wealth, followed by 20% for the next wealthiest group. The remaining 60% of households have just 17% of wealth between them.
2015-16: The highest 20% of household wealth groups holds 62% of all wealth. The middle 20% wealth group holds 12%, and the lowest 20% wealth group holds less than 1%. Wealth is highly concentrated at the very top. The highest 10% wealth group owns 45% of all wealth while the highest 5% owns 32% and the very highest 1% holds 15%. So the share of the highest 1% (15%) is greater than the middle 20% (12%). In contrast, the combined wealth of the lowest 40% is just 6% of the total.
Profile of wealth holdings of wealth groups
This graph shows the components of wealth for each wealth group. The profile of assets held changes as we move up the household wealth scale.
2017-18: The holdings of the lowest 20% wealth group are mainly in 'other non-financial assets' such as cars (48% of heir wealth holdings) and superannuation (38%). Few own their homes. Moving up, the proportion of wealth held in owner-occupied housing rises (from 29% for the second-lowest wealth group to 51% for the second-highest). The proportion held in superannuation declines from 33% to 21%. In the highest wealth group, relatively less of the wealth is in the main home (34%) than those in the middle, and more of it in shares and other financial investment (26%) and investment property (15%).
2015-16: Most of the wealth of the lowest 20% wealth group is in low-value assets such as cars and home contents (49%) and superannuation (40%). The average net value of owner-occupied housing held by this group is just $2,000, which strongly suggests that the majority do not own (or are purchasing) the home in which they live. Among those in the middle 20% wealth group, most wealth is held in the main residence (53%), with a lower share held in other non-financial assets such as cars (17%) and superannuation (8%) than for the lowest 20% wealth group. Among the highest 20% wealth group, less than half of wealth is in the residential home (34%), with a greater proportion held in shares and other financial assets (24%) and investment property (16%). Although this group has more expensive homes than the middle 20%, the average value of their financial assets and investment properties is many times greater than those held by the middle 20%.
Wealth distribution among income groups
Wealth is more evenly distributed across income groups than across wealth groups. The highest 20% of households by income hold 42% of household wealth, compared with 15% for the middle 20% and 11% for the lowest 20%. The main reason for the more even distribution of wealth among household income groups is the high home ownership rate among older people, who tend to have lower incomes. This is likely that this will change in future as a declining share of older people own their main home The highest 20% income group holds 30% of all wealth in main residences, compared with 17% for the middle 20% income group; and 16% for the lowest 20% income group.
Other forms of wealth are much less evenly distributed across household income groups. The highest 20% income group owns 60% of all shares and other financial assets, 53% of investment real estate, and 46% of superannuation wealth.
Value and profile of household wealth for each income group
This graph shows the distribution of wealth across income groups. It is more evenly distributed than across wealth groups, due largely to high levels of home ownership among retirees.
2017-18
The wealth of the highest 20% by income is valued at $2,148,000, almost three times as much as the middle 20% and four times as much as the lowest 20%. The average value of wealth in owner-occupied homes is fairly consistent across income groups, with four of the five groups holding no more than $400,000 in wealh in this form. The highest 20% have homes worth an average of $496,000 after mortgage debt is subtracted. Shares and other financial assets are heavily concentrated in the hands of the highest 20% by income. Their average holdings are worht $622,,00 - five times that of the middle 20% ($124,000) and nine times that of the lowest 20% ($73,000). The avearge superannuation wealth of the highest 20% is $496,000, three times that of the middle 20% ($179,000) and nine times that of the lowest 20% ($58,000). The average investment property holdings of the highest 20% are worth $281,000 - three times that of the middle 20% ($88000) and four times that of the lowest 20% ($63,000).
2015-16
The highest 20% of households ranked by disposable income had average wealth of $1,952,000, almost three times the middle 20% ($711,000) and almost four times the lowest 20% ($532,000). The highest 10% income group had average wealth of $2,676,000 and the highest 5% had $3,730,000. The main residence of the highest 20% of households by income had an average net value (after mortgage debt is subtracted) of $557,000 which was 1.7 times that of the middle 20% ($319,000) and 1.8 times that of the lowest 20% ($302,000).
Trends in housing costs by income support payment
This graph shows trends in average housing costs (adjusted for household size) for households reliant on income support payments, by payment, using $2015-16, compared with the median cost for all households. From 2006-08 to 2015-16, median housing costs for all households (after adjusting for inflation and household size) rose from $75 a week in 1999-00 to $115 a week in 2007-08, and then increased by 27% to $146 in 2015-16.
The largest housing cost increases from 2007-08 to 2015-16 were experienced by those relying on Parenting Payment (mainly sole parent families). Their average housing costs rose in real terms from $91 per week in 1999-00 to $115 in 2007-08, then increased again by 32% to $152 in 2015-16. Those relying mainly on Newstart Allowance also faced relatively high housing costs, which grew from $75 per week in 1999-00 to $106 in 2007-08, then rose by 28% to $136 in 2015-16. Housing costs for households relying on Disability Support Pension rose from $64 per week in 1999-00 to $83 per week in 2007-08, then increased by 28% to $103 per week in 2015-16. Housing costs for households relying on Carer Payment fell from $91 per week in 1999-00 to $87 per week in 2007-08, then increased by 29% to $136 per week in 2015-16.
The lowest average housing costs among income support households were for those relying on the Age Pension. This reflected their high rate of home ownership (74% in 2015). However, these households experienced the steepest increase in housing costs after 2007, when their average housing costs rose from by 45% from $38 per week to $55 per week in 2015-16.