The mean (average) wealth of an Australian household in 2003-2004 was $468,000, according to a new publication released by the Australian Bureau of Statistics (ABS) this week.
Wealth is a net concept and measures the extent to which the value of households' assets exceeds the value of their liabilities. The mean value of household assets in 2003-04 was $537,000 and the corresponding value of average household liabilities was $69,000.
The median net worth (i.e. the mid-point when all households are ranked in ascending order of net worth) of all households in Australia in 2003-04 was $295,000, substantially lower than the mean.
The survey found a relatively small proportion of households had relatively high net worth, and a large number of households had relatively lower net worth, in part reflecting the common pattern of people accumulating wealth throughout their working life.
Main findings in the latest release include:
- Owner-occupied dwellings were the main form of asset held by Australian households, and mortgages were the main form of liability.
- Seventy per cent of households owned their own home outright or with a mortgage. The average value of their home was $355,000.
- For the 35 per cent of households with a mortgage on their home, the average value of their home was $351,000 and the average value of the amount owing on their mortgage was $113,000, giving a net value of $238,000.
- Nearly 20 per cent of households owned property other than their own home, including holiday homes and residential and non-residential property for rent.
- Balances in superannuation funds were the largest financial asset held by households. Nearly 75 per cent of households had some superannuation assets. The average value of superannuation assets for these households was $87,000, even though half the households had superannuation assets under $35,000.
- On average, households in the lowest 10 per cent of the income distribution had higher levels of wealth and expenditure than households with slightly higher incomes.
