So This Is The Wealth in Australia, Household Net Worth, Interesting, What’s Your Thoughts?

Stargazer5 on 12/11/2022 - 17:55
Last edited 12/11/2022 - 17:56

I was thinking about how I am doing and found this.

Median household net worth in 2020 is $579,000
50% household below and 50% household above.
Very very rough look, about 36% got more than $1,000,000
Lol, that’s so much money.
Very roughly 25% household got around $200,000 and less.

P.s Sorry about looks of the table.
Please refer to website for data and original table/graph.

https://www.abs.gov.au/statistics/economy/finance/household-…

Graph 3 - Distribution of household net worth, 2017–18 to 2019–20(a)
$'000 2017-18 (%) 2019-20 (%)
-100 0 0.3
0 1.3 1.7
100 18.4 16.6
200 8.4 8
300 6.7 6.5
400 5.9 6.1
500 5.7 5.9
600 5.9 5.9
700 4.8 4.8
800 4.4 4.4
900 3.8 4.3
1,000 3.5 3.6
1,100 3.5 3.5
1,200 3 3
1,300 2.5 2.3
1,400 2 2.1
1,500 1.7 1.8
1,600 1.7 1.7
1,700 1.4 1.7
1,800 1.2 1.3
1,900 1 1.1
2,000 1.2 1.2
2,100 1 0.8
2,200 0.9 0.9
2,300 0.7 0.7
2,400 0.7 0.7
2,500 0.6 0.5
2,600 0.5 0.6
2,700 0.3 0.6
2,800 0.5 0.3
2,900 0.4 0.4

Financial

Comments

  • Stargazer5 on 12/11/2022 - 18:00

    News said we are the richest country in the world in terms of median wealth per adult person?/household?. $445,000 or something.

    • EightImmortals on 12/11/2022 - 18:07
      -3

      Is that what they're saying to justify their tax-pillaging ways?
      Say it for long enough and people will start believing it I guess.

      • freefall101 on 12/11/2022 - 19:58
        -1

        Well yeah, at least a quarter of households don't really have enough to their name to even think about things like retiring and owning a home. Most are paying money to some rent-seeker who doesn't really contribute anything but has a whole lot of cash tied up in making themselves richer.

        We've listened to "taxing the rich is bad!" for long enough that people believe that, why not swing things the other way?

        And despite being reasonably taxed (Australia sits well below the OECD average when it comes to tax vs wages for the average worker), the vast majority of us aren't putting in anywhere near enough to cover the cost of things like healthcare, roads and education.

        There's also an easy solution. Don't want to pay taxes in Australia? Go somewhere else.

        • EightImmortals on 12/11/2022 - 20:11
          -1

          "the vast majority of us aren't putting in anywhere near enough to cover the cost of things like healthcare, roads and education."

          Not to mention the war in Europe, where are we? 400 million with a possible extra 500 million to come? And lets not forget the 7.5 BILLION they gave to bail out failed European banks after the GFC. There is a a VERY long list of government waste conducted with the tax money they take from working Australians instead of spending it on the aforesaid 'roads and schools'.

          As for going somewhere else, I guess that's the standard programmed response that people blurt out to those who can see the problems we face and figure it might be better to try and make things better here than run away to 'somewhere else'.

          • freefall101 on 12/11/2022 - 21:10
            +2

            @EightImmortals: "The government wastes taxes" is the claim of everyone who wants to pay less taxes too. Why aren't you calling for better investment back into the country and paying down debt rather than lower tax rates if you're truly interested in reducing waste rather than just lining your own pocket?

            $400m on Ukraine and helping keep a country free? Oh no, it takes up almost 0.1% of the budget for one year! $7.5B to European banks? Going to need a citation required on that one. And the point remains, the government still spends more on roads, schools and healthcare for you than you're paying them, adding in the chump change you apparently don't agree with you justify your tax rant doesn't change that.

    • Stargazer5 on 12/11/2022 - 18:10

      I have been asking my friends as a joke, where is my $445,000? Lol

  • AustriaBargain on 12/11/2022 - 18:07
    +8

    Wealth is kind of hard to figure out. Housing market in Australia is on paper worth over four times our GDP, so something doesn't really add up.

  • SBOB on 12/11/2022 - 18:08
    +4

    Does that household net worth also include the house the household may be living in ?
    If so, that would drastically change how much 'money' they actually have.

    • Stargazer5 on 12/11/2022 - 18:41

      Yes, owned houses

    • johndowy on 12/11/2022 - 19:40
      +1

      Yes, it includes the house they live in.

  • Mokr on 12/11/2022 - 18:29
    +1

    Add in super it's pretty easy to have a high networth.

    Though I can't remember if the census asked me

  • Jimothy Wongingtons on 12/11/2022 - 18:34
    +1

    Hot tip: it ain’t going to get any easier unless something super serious happens in which case it won’t mean anything anymore

  • pharkurnell on 12/11/2022 - 18:39
    +13

    My thoughts are dont bother comparing yourself to others. Be happy with what you got..

    • Stargazer5 on 12/11/2022 - 18:55

      I am not jealous or anything. And I am joyful with what I have. I am just curious. Sometimes as they say, knowing what’s happening in Australia or around the world, you appreciate more of what you have. I know wealth is not the most important thing about life, like relationships are more important, and net financial worth is not self worth. :)

  • Stargazer5 on 12/11/2022 - 18:41
    +2

    Wealth (net worth)

    Household wealth (or net worth) is the value of all the assets owned by a household less the value of all its liabilities.

    Assets include:

    non-financial assets, such as dwellings and their contents, land, and vehicles
    own incorporated and unincorporated businesses
    other financial assets such as bank accounts, shares, superannuation accounts, and the outstanding value of loans made to other households or businesses
    Liabilities are primarily the value of loans outstanding including:

    mortgages
    investment loans
    credit card debt
    borrowings from other households
    other personal and study loans

  • franco cozzo on 12/11/2022 - 18:53

    thats, a lot of commas, for one, sentence.

    • Stargazer5 on 12/11/2022 - 18:57
      +3

      It was copy and paste. Lol from the website. I think it’s dot points.

  • AndyC1 on 12/11/2022 - 18:57

    Love the crappy layout…. NOT

    • Stargazer5 on 12/11/2022 - 18:59
      +1

      Feel free to repost it with correct layout. I don’t know how and I don’t really mind. Lol

      • AndyC1 on 12/11/2022 - 19:06
        -4

        Then find out before posting badly formatted posts as it is not good.

    • whatwasherproblem on 12/11/2022 - 19:04
      +7

      I gotchu' fam

      $'000 2017-18 (%) 2019-20 (%)
      -100 0 0.3
      0 1.3 1.7
      100 18.4 16.6
      200 8.4 8
      300 6.7 6.5
      400 5.9 6.1
      500 5.7 5.9
      600 5.9 5.9
      700 4.8 4.8
      800 4.4 4.4
      900 3.8 4.3
      1,000 3.5 3.6
      1,100 3.5 3.5
      1,200 3 3
      1,300 2.5 2.3
      1,400 2 2.1
      1,500 1.7 1.8
      1,600 1.7 1.7
      1,700 1.4 1.7
      1,800 1.2 1.3
      1,900 1 1.1
      2,000 1.2 1.2
      2,100 1 0.8
      2,200 0.9 0.9
      2,300 0.7 0.7
      2,400 0.7 0.7
      2,500 0.6 0.5
      2,600 0.5 0.6
      2,700 0.3 0.6
      2,800 0.5 0.3
      2,900 0.4 0.4
      • Hydralyte on 13/11/2022 - 08:02
        +3

        @Stargazer5 please copy this table into your description

        • AndyC1 on 13/11/2022 - 11:22

          I doubt Op knows how to do any updating based on posts.

        • Stargazer5 on 13/11/2022 - 19:47

          I copied the table from the website. I am using iPhone.
          I copied the above table and pasted into description. It’s the same result.

  • onetwothreefour on 12/11/2022 - 19:17
    +2

    I would imagine the median has gone up since 2020 as we were all in lock down and not spending money for the past couple of years.

    I don't think $500k is that far out of reach for most home owners, as long as you didn't buy your first home in the last year.

  • bargaino on 12/11/2022 - 20:12
    +2

    $579k now means an average house. (Unless you live in Sydney, where it means a grotty flat.)

    20 years ago, a house cost half that (in real terms, 2020 dollars), so that $576 gave you a house, a nice car or two, a share portfolio, a holiday shack down the coast, a boat on a trailer, and a geared investment property.

    • Stargazer5 on 12/11/2022 - 21:33

      Interesting~

    • ForkSnorter on 13/11/2022 - 11:35

      For $579k you can get a fancy, near-new 2-bed apartment in Brisbane with amazing views and facilities.

    • Jugganautx on 13/11/2022 - 12:58

      My house cost 230k 4 years ago

  • Donaldhump on 12/11/2022 - 23:22
    +1

    bit a dumb stat

    shouldn't it be net wealth per adult?

    a singleton with 600k, is richer than a married couple with 800k?

    • ForkSnorter on 13/11/2022 - 11:34

      It would be too complicated to work it out per adult, because of shared assets. Household makes sense in my opinion. A single person is also considered a household.

      • Donaldhump on 14/11/2022 - 12:05

        household income / # adults.

        tough formula

        • ForkSnorter on 14/11/2022 - 12:06

          Then how do you calculate the median?

          • Donaldhump on 14/11/2022 - 12:08

            @ForkSnorter: new metric is wealth per adult, find the median

            not that hard

            • ForkSnorter on 14/11/2022 - 12:20

              @Donaldhump: Household is more meaningful, in my opinion. A person in a household with $1 million is not equivalent to a single person with $500k.

              • Donaldhump on 14/11/2022 - 12:44

                @ForkSnorter: a person in a household with 10 adults (imagine having 2 grand parents and 4 grand kids all sharing a pimp mansion) with a combined household wealth of 2 million portrays in inaccurate figure

                a person in a household of 2 adults is not as wealth as a single person with a wealth of 400k. again portrays inaccurate figure.

                "A person in a household with $1 million is not equivalent to a single person with $500k." it is if there is 2 adults living in the house, but the whole reason that the number of adults in a household is unknown is what makes it a useless figure.

                if every single australian lived in a giant house we would have household wealth of > 1 trillion dollars

  • DingoBilly on 13/11/2022 - 06:03
    +3

    Seems a bit low to be honest. I'd be worried if people have that little wealth accumulated.

    • Ghost47 on 13/11/2022 - 11:02

      Probably because of all the housing debt people have.

  • HelpMeiCantSee on 13/11/2022 - 10:32

    I guess it depends on metrics used. It could be argued I have a decent NW, however in reality I’m young, widowed, can only work part time, on a pension and have young kids and don’t really have much to my name, but I survive ok.

    Any idea what the criteria are?

  • ForkSnorter on 13/11/2022 - 11:27

    First point: the data is out of date. There will be a massive increase in mean and median wealth in the 2020-2021 data due to the mad sheep pandemic property boom. Strange that they don't have that data available yet.

    Second point: the majority of this wealth is theoretical, in that it is tied up in property, and accessing it on an individual level would reduce it significantly (due to the costs of selling and tax paid on capital gains, etc.); accessing it at population level would virtually wipe it out because everyone would be selling their house at the same time, leading to a property price crash.

  • jrvb42 on 13/11/2022 - 15:17
    -1

    Are they quoting the median per person or per household? If the statement is rubbery you can bet the underlying stats are too. And it's pointless asking for a discussion as a result.

    • dtc on 13/11/2022 - 15:34
      +1

      Are they quoting the median per person or per household? If the statement is rubbery you can bet the underlying stats are too. And it's pointless asking for a discussion as a result.

      If only there was a link to the source material that you could click on to find out

  • Stargazer5 on 13/11/2022 - 20:30

    I think rough estimates, 30% own houses outright, 30% on mortgage and 40% renting. Very rough. From Martian North general stats
    Very roughly, low income is about $450 a week, middle income about $900 a week and high income is about $2,200 from website stats
    Super and investments contribute to most high income earners. From website stats.
    I think, combining the data, majority of people below the median wealth 50% would not own houses outright. Most renting and on mortgages as a lot of houses (not all) are more than $579,000.

    It’s very hard to save a lot money because people need a certain amount of money to live on, only after money gets saved.
    In last year or so a lot of houses went up in value and yes, net worth would go up. People who bought property years ago, their net worth shot up as their house value went up. People who are starting out now and low income earners struggle in life.

    To cater people with little income, we need another option. In life you really need somewhere to sleep eat and clothes.
    Gold Coast is building capsules, they are like submarine beds, very small area. I know it’s not normal for people to live in them but if we built these in major areas. It would help some people start to build wealth or get off the streets and maybe save a deposit for a small place of thier own. They have a place to sleep, shower, charge phone, maybe microwave. Cheap place to stay. Money from government or work would also have enough for food. In Brisbane there are a lot of parks to relax and shopping centre for aircon. $20 a week on gym maybe somewhere with a pool. They won’t have a big house and land, but they have necessities, just being in major city is way better than a lot of places around the world, can walk places, not much pollution, water and toilet in public places. Travelers can stay in these places too .

    • Stargazer5 on 13/11/2022 - 20:41

      Add in public transport and a scooter for $1000 40km range like ninebot max in Brisbane, people can go a lot of places

    • Stargazer5 on 13/11/2022 - 20:48

      Free libraries spaces

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