Australian Household Wealth Soars to Record $16.9 Trillion as Property Markets Defy Odds
Australian households recorded an eighth successive quarter of wealth growth in the latest ABS data to a record $16.9 trillion.
This resulted from: an increase in property values; a buoyant domestic and international share market; and superannuation balances. The ABS household wealth figures show a stellar 2.4 per cent rise in the value of household wealth for the September 2024 quarter and points to the strength of Australian household finances amidst turmoil in global economic markets.
The Key points:
In the September 2024 quarter, household wealth increased by 2.4%, reflecting $401 billion, in essence driven by increases in the value of residential property and increases within share markets.
Superannuation rose 3.5% to a total increase of $137.4 billion, assisted by the increase in the superannuation guarantee rate from 11.0% to 11.5%, which indicates an improving retirement savings outcome.
Household deposits increased 3.7%, to $61.5 billion, reflecting higher savings ratios and boosted by increased disposable income from stage 3 tax cuts.
Government credit demand reached levels not seen since 2020, with significant funding for cost of living relief measures; this shows a response to economic challenges and the need for financial assistance.
Why it matters:
This marked increase in wealth ensures that Australian households can rely on extra financial security as well as spending, allowing for economic activity. Nonetheless, it indicates the gaoing discrepancy in economics-whereby the main end is directed to those owners of property and individuals holding heavy superannuation account balance.
Big Picture:
The continued increase in household wealth, combined with increased government spending on cost of living relief, is a balancing act between economic prosperity and social equity. This could have a bearing on future policy decisions in the areas of housing affordability, superannuation reforms, and measures for wealth distribution that will shape Australia's economic landscape.