House price Pixabay
Australians have gotten richer by over AU$1.5 trillion in the past year, with the country’s total household wealth reaching a record AU$16.9 trillion, which was a 9.9% increase from this time the previous year.
The key factors that influenced the growth include rising house prices, strong superannuation growth, and a booming share market.
In the September quarter, Australian households’ wealth increased by 2.4% to AU$401 billion, mostly due to a 0.9% increase in the value of residential real estate, News.com.au reported.
ABS head of finance statistics Mish Tan said house prices drove up the wealth accumulation in larger proportions, but all asset classes showed significant signs of growth.
“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,” Tan said.
In the September quarter, Australia’s superannuation assets gained 3.5% (AU$137.4 billion), propelled by the share market’s expansion and enhanced employer contributions as a result of the superannuation guarantee’s increase from 11% to 11.5%.
Due to a greater savings rate, household deposits in Australia increased by 3.7% (AU$61.5 billion) during the September quarter. When tax cuts helped income growth outpace consumption, households hoarded cash, particularly in mortgage offset accounts.
“Growth in gross disposable income, driven by an increase in income received by households and the introduction of stage 3 tax cuts, outpaced household spending. This resulted in notable growth in transferable deposit balances, particularly in mortgage offset accounts,” the ABS said in a statement.
