Part of the reason for Australia's strong performance was the massive property price growth seen in 2020 and 2021. “Significant rises in GDP, combined with vigorous equity and housing markets are expected to produce sizable wealth gains at the country level, and this was certainly the case in 2021,” the report said.
The median Australian adult finished 2021 with a net worth of $US273,900, making them richer than the comparable resident of any other country, according to Credit Suisse's annual global wealth report.
Australians have to earn more than six times the median wage to be considered rich. In 2021, a study revealed how much Australians were making on average and perhaps unsurprisingly, workers over the age of 45 earned the most.
The wealthiest 1 per cent of Australians held 21.8 per cent of the country's wealth in 2021, up from 19.6 per cent in 2007. “The strong rise in financial assets resulted in an increase in inequality in 2021,” the report by Credit Suisse, which helps manage the fortunes of many of the world's richest people, said.
Australia's economic prosperity is built on strong foundations: good governance, open markets and the rule of law. Australia consistently ranks highly in global indexes as a desirable destination to live, work, study and invest.
Australia performs well in many dimensions of well-being relative to other countries in the Better Life Index. Australia outperforms the average in income, jobs, education, health, environmental quality, social connections, civic engagement and life satisfaction. These assessments are based on available selected data.
So why is the cost-of-living in Australia so high? One of the major reasons is inflation. A measure for household inflation, the Consumer Price Index, or CPI, increased by 2.1% in the first quarter of this year and 5.1% annually, according to data compiled by the Australian Bureau of Statistics (ABS).
New data has revealed where Australia's richest people live - and what they do for a crust. The Australian Taxation Office has released data compiled by tax returns from 2019-2020, filed by more than 14 million Australians. And it turns out Perth has the wealthiest neighbourhoods in the country.
The Australian economy is dominated by its service sector, which in 2017 comprised 62.7% of the GDP and employed 78.8% of the labour force. At the height of the mining boom in 2009–10, the total value-added of the mining industry was 8.4% of GDP.
So if you're on $100k or more, congratulations, you're in the top 20% of Aussie income earners. If not, don't worry, you're in the good company of 80% of Aussies.
The average full salary in Australia is $77,135 per year or $39.56 per hour. Entry-level positions start at $59,463 per year, while most experienced workers make up to $130,000 per year.
Our 2022 Poverty in Australia Snapshot found that there are 3.3 million people (13.4%) living below the poverty line of 50% of median income, including 761,000 children (16.6%). In dollar figures, the poverty line works out to $489 a week fir a single adult and $1,027 a week for a couple with 2 children.
Australia is a vibrant, multicultural country. We are home to the world's oldest continuous cultures, as well as Australians who identify with more than 270 ancestries. Since 1945, almost seven million people have migrated to Australia. This rich, cultural diversity is one of our greatest strengths.
Australia's average wealth is just 1.8 times our median wealth; by contrast the UK's is 2.2 times greater, while the US is second worst out of the top 50, at 6.7 times.
Wealthy Individuals within Australia are generally deemed to be those with net investible assets (NIA) over $1M (or net of over $2.5M including the family home) and earning more than $250,000 per annum. Having said this, the ATO categorise 'Wealthy Individuals' as those who control a net wealth of $5M or more.
Other nations have social security taxes
The main reason Australia ranks so highly on individual income tax levels is because Australians don't pay separate social security taxes. These account for an average 25.9% of total tax revenue, or close to 9% of GDP, across the OECD.
According to New World Wealth, approximately 80,000 millionaires have moved to the Land Down Under in the last two decades. A few things that attract migrants to Australia are the country's low costs of healthcare, its lack of inheritance tax, and its generally prosperous economy.
The worst performing states are Tasmania, with incomes 26% below the national income and wealth average, as well as South Australia which is 19% below the average household income and 20% below the national net wealth.
Reliance on Natural Resources
Another major problem with Australia is that the economy is largely dependent upon natural resources. The mining for coal and minerals is the main occupation in Australia. The growth in the Australian economy is largely driven by export of these natural resources.
Why is property so expensive in Australia? A number or reasons, such as foreign investment, stronger land regulation, prohibitive tax systems, a highly urbanised market and more.
The cost of living in Australia is rising – quickly – and it's expected to keep rising into 2023. We had 8 cash rate hikes (from 0.1% to 3.1%) in 2022, and the latest quarterly inflation figure was 7.3%.