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Share of indebted households with debt-to-annual income ratio above three

Wealth inequalityInequalityInequalitywealth ineHow does Australia compare?

The Organisation for Economic Cooperation and Development (OECD) regards households in the lowest 40% by income with debt at least 3 times their annual disposable income as ‘over-indebted’ and therefore at-risk financially.

Australia ranks 6th highest on this measure among 23 OECD countries, with 29% of low-income households over-indebted.

Due to our high and rapidly growing home prices and relatively easy access to credit, Australian households are more indebted than in most other wealthy nations.

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