The rich are getting richer in Australia, as they are everywhere in the world
In fact 1% control around 82% of the wealth in the world?
But I'm not going into why this is happening in this article - instead I've got an interesting infographic and some facts for you.
On the other hand if you want to understand why 1% will always control most of the wealth I recorded a popular Podcast with Tom Corley explaining why - you can listen here . And today we’re going to explain why.
Recently the demographers at McCrindle created the following infographic analysing the Australian Bureau of Statistics’ wealth and income data by quintiles.
- Also read:Sydney property market forecast for 2024
- Also read:What makes an A-grade property?
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Here’s how to avoid these 12 common reasons property investors fail to build a Multi Million Dollar Property Portfolio
- Also read:Boom to bust: What makes property prices rise and fall
Household income by quintiles
This infographic of annual household income by quintiles (20% categories, each comprising around 2 million of Australia’s 10 million households) shows the spread of total earnings.
McCrindle found that:
- While the average household earns just under $110,000 per annum, the top 1 in 5 earn more than twice this (exceeding $260,000) and the bottom 1 in 5 take home around one-fifth of the average (a little over $23,000).
- The bottom fifth of households take home just 4% of all income and the top fifth get almost half (48%).
- The highest fifth have incomes 12 times the lowest fifth. They earn almost as much as the other 80% of households combined.
- The wealth of the highest quintile households, on average, is 80 times that of the lowest quintile households.
- While the average Australian household has a net wealth of $929,400, households in the highest quintile have an average net wealth more than three times this ($2,906,400). Households in the lowest quintile, however, are worth just a fraction of the average (4% of the average wealth, or $36,500). The lowest 20% own just 1% of the national private wealth while the highest 20% own 62% of the national private wealth.
- While the average Australian household has seen wealth increase by 15% in the last 2 years (from $809,900 to $929,400), the highest fifth of households have experienced an average increase of 16% (an increase of $392,000).
- Only those in the fourth and fifth quintiles have a net household wealth ($949,800 and $2,906,400 respectively) that exceeds the average house price ($694,000), while the highest quintile households on average have a net worth exceeding 4 average Australian homes.