Household wealth up 2.3% in September quarter

I know many Aussie households are doing it tough at present but according to the latest figures released by the Australian Bureau of Statistics (ABS) household wealth rose for the fourth straight quarter (+2.3 per cent or $339 billion) in the September quarter 2023.

Total household wealth was $15.3 trillion in the September quarter, which was 7.0 per cent ($998 billion) higher than a year ago.

And not surprisingly this was largely driven by residential real estate, which contributed 1.7 percentage points to quarterly growth.

Mish Tan, ABS head of finance statistics, said:

“Household wealth is supported by house prices which have continued to grow despite increases in interest rates.”

The growth in household wealth was also supported by seasonal tax refunds coming in at the start of the financial year, with deposits increasing 3.4 per cent ($52.8 billion) over the September quarter.

Deposits into accessible transaction accounts (known as Transferrable Deposits) made up $24.4 billion of this increase, with most going into offset accounts.

Another $26.1 billion was invested in high interest Non-Transferable Deposits, including term deposits.

There were impacts across financial markets as the initial allowance of the Term Funding Facility (TFF) matured on 30 September 2023.

Banks exchange settlement accounts with the Reserve Bank of Australia fell $53.7 billion, as the $79.8billion of securitised bonds used to secure the funding returned to bank balance sheets.

To ensure banks still met liquidity requirements, they acquired $20.7 billion of Semi Government Bonds.

 “The TFF was a key source of funding for banks through the COVID-19 pandemic.

With the first tranche now maturing, banks are returning to traditional sources of funding, issuing $14.0 billion worth of bonds domestically and $9.3 billion of one name paper offshore,” Dr Tan said.

About Michael Yardney Michael is the founder of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.