Australian households are now worth more than $1 million on average, but weekly incomes are growing slowly compared to a decade ago.
Asset-rich, cash-poor Australians are relying on strong increases in property prices and superannuation balances to drive the wealth growth, which is heavily skewed by the wealthiest households.
Australian Bureau of Statistics chief economist Bruce Hockman said average household wealth was $1.02 million in 2017/18, compared to nearly $749,000 in 2005/06.
“While ABS data has shown that there is a recent downturn in the property market, over the longer term there has been sustained growth (of) 37 per cent since 2005/06,” he said on Friday.
“Over the same time, the average household superannuation balance has almost doubled from $112,500 in 2005/06 to $213,700 in 2017/18.”
But income growth has been weak.
In the four years leading up to the Global Financial Crisis, average household weekly incomes grew by $220 in real terms.
In the 10 years since then they have only increased an average of $44 a week.
Households earning an average of $798 in 2004 jumped to $1018 by 2008, but a decade on they’ve only increased to $1062.
“For low income households there has been an increase of $28 in average weekly household income over the past decade, while for high income households there was an increase of $57,” Mr Hockman said.
The ABS calculates household net worth by balancing land, vehicles, businesses, savings and superannuation, with mortgages, investment loans, and credit card and other forms of debt.
Wealth inequality has remained stable since 2011/12, with the latest figures showing the wealthiest 20 per cent of households controlling 60 per cent of all household wealth.
The middle 20 per cent held 11 per cent of all household wealth, averaging $564,500 per household in 2017/18.
The lowest 20 per cent controlled less than one per cent of all household wealth, with average wealth currently at $35,200.