Average wealth of 131 billionaires compared with the top 1% of households ($m)
[infogram id="_/oyc4JZwKz4Jex2r8HKg3" prefix="nkX" format="interactive" title="Average wealth of 131 billionaires"] According to The Australian newspaper, in 2021 there were 131 billionaires (with wealth over a thousand million dollars) in Australia. Between early 2020 and early 2021, when adjusted for inflation to 2019 values their average wealth rose by 12% from $3,169 million to $3,574 million. Their overall wealth rose from $416 billion to $468 billion.
Increase in real net household wealth per capita
[infogram id="_/JY4ny1kvEMvPsF3TLobL" prefix="sqS" format="interactive" title="Increase in real net household wealth per capita"] From December 2018 to December 2021 real net household wealth rose by 43%. Of this increase: * Over half (55% of the increase) came from owner-occupied housing (which comprised 37% of all wealth in 2018); * One-seventh (14%) came from investment property (11% of wealth in 2018); * One-sixth (16%) came from superannuation (22% of all wealth in 2018); * The remaining 15% of the increase in overall wealth came in roughly equal measure from shares bonds and trusts, bank deposits, business assets, and household durables18 (which together comprised 30% of all wealth in 2018).
Cumulative growth in superannuation assets
[infogram id="_/0tz7xV9CUSBEcPcLQadu" prefix="IdH" format="interactive" title="Cumulative growth in superannuation assets"] Superannuation account balances vary over time through a combination of net contributions (contributions minus any benefit payments) and investment returns. Since most superannuation funds invest in a combination of shares, bonds, property and cash deposits, their average investment returns broadly reflect returns on those investments. As a proportion of their value in December 2019, superannuation account balances declined by 9% by March 2020 then rose to 18% above December 2019 levels by December 2021.
Changes in the distribution of wealth since 2003
[infogram id="_/42kg4tobDcX38c8UgCch" prefix="wlA" format="interactive" title="Increase in wealth by wealth group since 2003 %"] In 2003, wealth was shared very unequally. The highest 10% had 42% of all wealth, the middle 30% had 38% and the lower 60% had 20%. By 2018, the distribution was skewed even further towards the richest. The highest 10% had 47% of all wealth, the middle 30% had 37% and the lower 60% had 16%. During the COVID recession and recovery, wealth inequality moderated somewhat but wealth was still distributed more unequally than in 2003. By 2021, the highest 10% had 46% of all wealth, the middle 30% had 38% and the lower 60% had 17%.
Proportion of median income required to pay a typical mortgage on a recently purchased home (%)
Source: ANZ Corelogic housing affordability report, March 2022 Note: Assumes owner has borrowed 80% of median dwelling value and is paying the average discounted variable mortgage for a term of 25 years. Percentage of median gross annual household income required to pay median rent on a new lease
This graph shows that the proportion of median household disposable income required to service a typical home mortgage rose from 27% to 41% between 2003 and 2021.
Net saving per capita
[infogram id="_/5XProYwUsMtRCj1shL9h" prefix="51m" format="interactive" title="Net saving per capita"] As outlined in our previous report on the impact of COVID on income inequality and poverty, public income supports such as JobKeeper Payment and the Coronavirus Supplement boosted the incomes of many low-income households while COVID restrictions reduced spending on such items as holidays, entertainment and eating out35. The result was a sharp increase in overall household saving.
Profile of household wealth in different countries in 2020 (% of all wealth)
[infogram id="_/f3Nw4ZTP5tFUR1C9g8lq" prefix="HEO" format="interactive" title="Profile of household wealth in different countries in 2020"] A relatively high proportion of household wealth in Australia (58%) is in non-financial assets - mainly housing - compared with a global average of 46%.
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Low-income tenants hardest hit as Australian rent rises outstrip assistance payments
COVID-19: Housing market impacts and housing policy responses - an international review
COVID-19: Housing market impacts and housing policy responses - an international review
Median advertised rents by state/territory in Australia, 2019-2021
[infogram id="_/tl566KvdfglB4AhwWJTx" prefix="CIY" format="interactive" title="Figure 6.6 Median advertised rents, all property types, Australia"] This graph shows the phenomenon of regional rents ‘outperforming’ the relevant capital city in Australia from 2019-2021. This was especially marked in New South Wales (+17% versus-2%), Tasmania (+26% versus +8%) and Victoria (+15% versus -7%). Also notable is that Western Australia, where geographical isolation and a closed border largely enabled avoidance of economic restrictions during the first two years of the pandemic, the pattern was completely different.