Australians’ back pockets continue to bulge with households across the country boasting a record $8.4 trillion worth of cash and assets. Break it down per person, and that’s $353,881 worth of stuff each. Each.
It’s a big, sobering figure the number bods at Commsec have crunched out there, especially when you consider there are now 23.7 million people living in Australia.
“We’ve been saying it consistently quarter after quarter but it still remains the case – Australians have never been wealthier,” Commsec Chief Economist Craig James beams.
It’s no surprise that property has helped household wealth climb to this new record amount, with the value of land and dwellings rising by $177 billion in the three months to June alone. The ‘average’ person then, enjoyed about $7,500 worth of property gains over the last quarter.
Those gains helped offset an $86 billion fall in financial assets as markets went through a tough time that continues to bubble away today.
Probably because of those turbulent times, Australians are holding cash in record levels, with $920 billion sitting in cash and deposits at the end of June. This represents about 22 per cent of financial assets, which is just below the long-term average of 22.3 per cent.
While all this might make you feel like a financial mouse in the fat cattery, rest assured that it’s good news for the economic prospects of our great nation.
As James explains, “high wealth levels provide a solid plank of support for household spending – a fact that should hold the economy in good stead for the next year.”
“Assets continue to rise, especially underpinned by higher home prices. And amazingly financial debt – in real terms – has recorded the biggest fall on record. Clearly the balance sheets of Aussie households are in good shape. And higher wealth levels may point to higher spending ahead.”
So take some comfort in the fact these mammoth wealth levels might leave you with a new job in the future, and even a fatter pay cheque.