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Total wealth held in Australia increased significantly over 10 years to $6.1 trillion in 2017 from $3.4 trillion in 2007. As a result, per capita wealth in Australia increased by 83% to $279,000, making Australia the one of them. of the 10 richest countries in the world.
The recent “Australian Wealth Report 2018” revealed that Australians now own $6.1 trillion in net assets, almost doubling over the past 10 years. A study by research consultancy New World Wealth has grown significantly from $3.4 trillion a decade ago. This makes Australia the ninth largest wealth market in the world by total wealth held. The ranking is followed by the USA, China, Japan, the UK, Germany, India, France and Canada.
Australia’s wealth grew with the help of rising property values, particularly on the east coast. A strong local stock market and high-performing industry sectors including financial services, professional services, real estate, transportation, IT, telecommunications and healthcare helped drive further growth. If the country’s total assets were fairly distributed among the 24.6 million people living in Australia, each would have $279,000 of that.
However, this is not the case, as approximately $1.7 trillion of current wealth, or 28%, is held by high net worth individuals (HNWIs). These are people who hold net assets of $1 million or more. Currently, only 377,000 of these people live in Australia, and this number is expected to rise to just 650,000 in the next decade. A portion of this is accounted for by the estimated 12,300 multi-millionaires living in Australia, each with a net worth of $10 million or more. An even smaller proportion of HNWIs are the 455 millionaires living in Australia, each with a net worth of US$100 million or more, and Australia hosts just 36 billionaires.
Again, the average of the numbers suggests that the average Australian is now significantly wealthier than the average US citizen. A decade ago the opposite was true, while if the financial centers and tax havens of Monaco, Liechtenstein, Luxembourg and Switzerland were excluded from the calculations, then Australia ranks first in the world in average wealth per person in US dollars – however it is worth questioning how any of that is meaningful if so much of that wealth materially resides in a minority of the population.
Australian wealth is expected to continue to grow strongly over the next 10 years, reaching a total of US$10.4 trillion by 2027. This will see Australia become the world’s seventh largest wealth market by 2027, moving up from seventh, leapfrogging Canada and France while bringing the country within touching distance of Germany and the UK.
There are several reasons for this rosy forecast, according to research. Low population density and vast expanses of mineral-rich land mean there is less domestic competition for natural resources, so more exports can be afforded. A country’s perceived safety also helps fuel wealth growth, with Australia recently ranked one of the top five safest countries for women, along with Iceland, Malta, New Zealand and Canada. At the same time, Australia’s geographical location has enabled the development of strong trade ties with Asia, including China, Japan and Korea.
Related: Ocean’s billionaires club grows by nine.
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