Australia’s personal wealth has grown by $4107 billion over the last 12 years, according to the recently released Roy Morgan Wealth Report, but don’t break out the champagne just yet. While that’s great news for the top end of town, the fortunes of the average Australian have actually declined during that period.
The report found that Australia’s net wealth, calculated by the value of assets minus debts, had increased by 90.5 percent between 2007 and 2019. Even when you factor in the increased cost of living, our collective fortunes were up by 47.6 percent. However, the median figure shows the average Australian has a net wealth of approximately $173,000, up 26.3 percent since 2007. When you factor in the higher price of utilities, groceries, and other essentials, then the median wealth figure has actually fallen by -2.2 percent.
Zoom in on the wealthiest and poorest Aussies and you’ll see an even greater disparity. Australians in the top 10 percent increased their wealth from $1.2 million to $1.9 million, an increase of more than 60 percent. On the flip side, the lowest 10 percent grew their negative wealth from a deficit of $20,000 to minus $19,000, or an increase of just 4 percent. The wealthiest Aussies have also increased their share of the pie. Australia’s top 10 percent now hold 47 percent of the nation’s personal wealth.
To put that in perspective, the bottom half of the population owns just 3.6 percent of Australia’s wealth. Population growth has helped the rich get richer, as growing families need to purchase or rent larger homes, which property investors are only too happy to provide. Are you frustrated with the unequal spread of wealth in this country and keen to own your fair share?
Speak to Chase Edwards on 1300 854 833. We can help you pay down your debts fast, grow your nest egg, and increase your personal wealth. Arrange your free, no-obligation financial health check with us to learn more.