Australians, Are We Feeling Wealthier? Because We Should!

Key takeaways

Household wealth rose for the eighth quarter in a row, up 2.4 per cent or $401 billion in the September quarter 2024, according to figures released by the ABS.

Total household wealth was $16.9 trillion in the September quarter, which was 9.9 per cent ($1.5 trillion) higher than a year ago.

Residential land and dwellings were the largest driver of the rise, contributing 0.9 percentage points to the overall 2.4 per cent rise in household wealth.

Has your wallet felt a bit heavier lately?

Well, you're not alone.

Across the country, Australian households have seen their wealth jump significantly.

As of the September 2023 quarter, the nation's household wealth surged by $339.4 billion, a robust increase of 2.3%.

Household wealth rose for the eighth quarter in a row, according to the Australian Bureau of Statistics, up 2.4 per cent or $401 billion in the September quarter 2024.

Total household wealth was $16.9 trillion in the September quarter, which was 9.9 per cent ($1.5 trillion) higher than a year ago.

Residential land and dwellings were the largest driver of the rise, contributing 0.9 percentage points to the overall 2.4 per cent rise in household wealth.

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Now, I know many households are suffering from a cost-of-living crisis, however, some Aussies are not suffering as much as others.

You see...a significant portion of this wealth accumulation came from strong performances in superannuation funds and other investments, with superannuation assets alone contributing $26.4 billion.

Moreover, some households have been savvy about where they park their money, with deposits increasing by $50.6 billion due to favorable higher interest rates​.

Dr Mish Tan, ABS head of finance statistics, said:

“Household wealth continues to be supported by rising house prices despite recent moderation in growth.

Strong performances in domestic and overseas share markets contributed to the growth in household superannuation balances this quarter.”

Share market growth over the September quarter drove superannuation assets to increase 3.5 per cent ($137.4 billion), which contributed 0.8 percentage points to the quarterly growth in household wealth.

The superannuation guarantee increased from 11.0 per cent to 11.5 per cent in the September quarter, which added to superannuation balances through increased employer contributions."

This growing financial cushion has broader implications.

With more assets in hand, Australians might feel more confident about the future, potentially leading to increased spending or investment in housing, which could have a knock-on effect on the economy.

It's clear that despite global economic uncertainties, Australians have been able to not only safeguard but also grow their wealth, showcasing the resilience and strategic acumen of households across the nation.

About Aska Soo Aska is a passionate and driven professional with many years of experience as a property consultant helping clients achieve their financial goals through property acquisition. She has consulted clients around Australia by reviewing, educating, and advising clients about their financial situation and what they need to achieve their end goal of being financially free.