Wealth and Income Distribution State V State

Monday, July 25, 2016


Australia has long been considered the land of the middle class, but in recent years the gap has been widening between the rich and the poor. When it comes to the battle of the states, which corner of Australia scores the highest and the lowest on the income and wealth report? Will the Baby Boomer generation continue their stronghold on our national wealth?

Is Australia still the land of the middle class?

It is hanging in there, but it’s under pressure. We have seen some hollowing out in the middle of the earnings and a bit of spread to either end. The average annual household earnings are around $107,000 however the lowest fifth of households earn 20% of this while the top fifth average almost three times this. That means that the top fifth of households are taking home about 12 times what the bottom fifth of households are earning.

Most Aussies have their wealth tied up in their homes, how does ownership compare with the top, middle and lower classes?

The average wealth (if you liquidate everything and pay off all your debts, what are you left with) is about $800,000. The bottom 1 in 5 have a net worth of just $35,000, the top 20% of all household have a net worth of about $2,500,000. That means that the top fifth of households have about 62% of Australia’s wealth, and the bottom fifth take less than 1% of Australia’s national private wealth. So that's a big difference in wealth across these households.

Which states are best and worst performers when we are looking just at income?

The mining boom in WA has really done a great thing over there and so they are leading the earnings chart, with the ACT not too far behind with public servant wages doing pretty well. At the bottom of the tree you have Tasmania, earning about $50,000 less per annum, per household, than what we have in the west.

What Makes a City the Most Liveable?

Wednesday, July 20, 2016

What makes a state or city liveable? Is it the low crime rate, affordability, ease of travel or is it simply the weather? We have compared some of the major factors and revealed what Aussies really think.

Affordability

If you take the average weekly earnings, subtract the average weekly mortgage repayments based on house costs, you find that NSW doesn’t do too well, it is earning 20% above the average, but the houses are 64% above the average, so NSW works out to be the worst in terms of income after housing. But WA is on top of the charts, with the ACT doing pretty well also.


Ease of travel

We took the centre of population of each of our capital cities, the mid-point of the population sprawl where as many people live north, as south of this point, and as many east, as west. From this centre of living we measured the average, non-peak hour driving time to the centre of the CBD marked by the GPO of each capital. We found that as we would probably expect, Sydney was the longest drive, about 33 minutes to get from the centre of population to the centre of the city, but the quickest trip of all was Brisbane with just 8 minutes.


Crime rates

This is the number of offenders per annum, per 100 people and the Territories book end the data here, with the ACT with the lowest crime rate nationally and the Northern Territory as the highest crime rate and the other states right in the middle. As measured by crime rates, the ACT is Australia’s safest place to live.


Weather

We measured this by looking at the average number of sunny days - totally clear days in a year. Tasmania not doing too well with a lot of cloudy, overcast days, but WA takes the crown with the most number of sunny days in any given year.



Watch Mark McCrindle's full interview on The Daily Edition here


A Snapshot of Education Across Australia

Monday, July 18, 2016

We have been looking at different aspects of life in Australia and we are turning our focus on how each state rates when it comes to education. Are we more educated than we used to be? In 1986 49% of students completed year 12 and these days its fast approaching 90%.

Let’s talk about tertiary education across the generations

We are becoming an even cleverer country as measured by university completion so if we look at the Baby Boomers, 1 in 5 have a university degree, for Generation X, that’s 1 in 4, for Generation Y its 1 in 3 but for today’s school students, about 1 in 2 of them will end up with a university degree in their lifetime.



How does university attendance compare across the states?

If we look at 18 – 24 year olds, who are full time students, we have the ACT and Victoria leading the charge there and the other states not too far behind, while the Northern Territory is a fair way behind.




When looking at school performance, which state is performing the best as they hit year 7?

The NAPLAN results allows us to compare across Australia. If you look at the percentage of students in year 7 who are above the national minimum standard, again good results across the board. ACT and Victoria again leading Australia as far as the proportion of students above the standards. The other states are close behind, again with the Northern Territory a bit off the pace.


Having an education usually means a lower risk of unemployment, how did the states rate?

Pretty good, Australia as a whole is going very well, with 5.7% unemployment, that’s well below a lot of comparable nations. It has gone down this year, not up and if you look at the states that are doing better than that with a lower unemployment rate, the Northern Territory and ACT are performing best however some other states particularly South Australia and Tasmania are a bit behind.


Watch Mark McCrindle's full interview on The Daily Edition here


The Shopper's Pick: Understanding Australia's new village green

Thursday, July 14, 2016

This year we were delighted to write up and design the third and latest report in the Trolley Trends Series, ‘The Shoppers Pick’ for Woolworths Limited. From developing the survey through to conducting the analysis, this report is the perfect blend of quality research with segmentation and visuals, making the research easy to consume.

With 1 in 5 (20%) Australian supermarket customers going to the supermarket at least once a week, the report reveals that a record number of people (44%) consider the local shopping centre to be central to community life and has truly established itself as the new village green – a place for connection and engagement with the wider community, perhaps even more so than the local pub, school or community centre.

It is the theme of local which is clearly the key message of ‘The Shopper’s Pick’, which provides a unique look into modern Australia’s living, eating and shopping habits today.


A GLOBAL NATION WITH A PASSION FOR LOCAL

As Australia becomes increasingly connected to global economies and new technologies, there is an equal if not stronger desire among shoppers to support Australian made products and local growers. It is increasingly important to Australian shoppers to know where their food comes from.

More than half of Australian shoppers (52%) state that buying local food is extremely or very important to them. In fact, around a quarter of shoppers prefer to purchase meat and poultry, bread and grains, and seafood and fish that are sourced locally in their own region rather than sourced further afield in their own state or within another region in Australia.


AUSTRALIA’S SEASONAL PERSONALITIES

Australians are impacted in different ways by the changing seasons. Australia’s Seasonal Personalities explores the different personalities of Australians and the impact seasons have on their lifestyle. Which Seasonal Personality are you?

THE HEALTH REVOLUTION

Australians are becoming increasingly health conscious and aware of the foods they consume. This trend towards healthy eating is demonstrated in the increase of health foods being included by Australians in their weekly shop.

Just over half of shoppers (52%) buy health food products weekly (i.e. sugar free, additive free, gluten free, dairy free, organic, raw, salt free or vegan), with sugar free products the most likely to be on Australians’ shopping lists and purchased by just over half of shoppers (51%), followed by organic and raw foods (both at 35%), and additive free foods (27%).


VALUE SWAG: A NATION OF CREATIVE SAVERS

Australians are a nation of savvy shoppers, who seek products that are value for money. Nearly 7 in 10 shoppers (69%) state that buying on discount is extremely or very important to them. These values are reflected in the ingredients they purchase for meals cooked at home, with 99% of Australian shoppers saying price is an important factor they take into consideration. As part of being savvy shoppers, Australians are also creative savers. Almost 6 in 10 shoppers (58%) save money by purchasing groceries based on weekly specials, while just over half (52%) save money by writing a shopping list and sticking to it. Stocking up and bulk-buying are two other ways Australians save money, with just over half of shoppers (53%) currently saving money by stocking up on discounted non-perishables.


This report follows on from the 2014 Trolley Trends Report which focused on the increasing importance of ‘Fresh’ amongst the Australian population. The report also found that one of the most common community connections for Australians is the local shopping centre. To access the Future of Fresh report, please click here.

World Population Day; a snapshot of Australia’s population state vs. state

Monday, July 11, 2016

Today is World Population Day, so let's take a look at different aspects of Australia's demographics and how each of our states stack up. Sydney’s headcount will hit 5 million later this year, but can it keep its place as the nation’s biggest city? The state of Queensland is also set to mark a major milestone, as it hits 5 million, while Melbourne has maintained its lead as Australia's fastest growing city.

what will a population of 5 million mean for Sydney?

More densification and more urbanisation. 1 in 5 Australians lives in Sydney and it’s been one of the fastest growing cities and from a population perspective it’s Australia's leading city. For every new detached home that is built in Sydney, you now have 2 units or townhouses, so it’s the vertical communities not just the horizontal ones – that’s what will mark Sydney’s future as the city continues to grow.

NSW is going to hit 8 million, but Queensland is going to hit a milestone too

Queensland is closing in on the 5 million mark, and around the same time, Sydney gets to 5 million. Queensland is interesting because it’s the most decentralised of our states, more than half of the population lives outside of its capital of Brisbane. It’s has 11 of Australia's 30 largest cities, while NSW only has 5. For NSW, two thirds of the whole state lives in the one city of Sydney.

In terms of population growth, how do the other capital cities compare with Sydney?

It’s really all about Sydney and Melbourne, in terms of the size of the cities, they are the largest cities. We have slower growing states like South Australia and Tasmania - in fact Melbourne is adding more people every 11 days than Tasmania adds in an entire year at the moment.

By comparison, how slow is South Australia’s growth?

It is quite slow, it was 1959 that Sydney got to 2 million people, Adelaide won’t get to 2 million until 2055, about a century after Sydney got there. While it’s the fifth largest city, it’s a long way off the pace of Sydney and Melbourne. Interestingly, in the year that both Sydney and Melbourne get to 8 million, it will be in that year that Adelaide gets to 2 million.

Why is South Australia’s growth so small?

This hasn’t had the historical scale and growth of the Eastern capitals. While it has the lifestyle and housing affordability, it hasn’t been Australia's business capital in the same way that Sydney and Melbourne have been however, with new state government incentives, this may start to change. 

View Mark's full interview on The Daily Edition here


Digital Thumbprint; Social Media Trends Study

Monday, July 04, 2016

We were delighted to have been commissioned by Optus to conduct research into the increased use and implications of online selfies with a focus on the role played by parents in guiding their children’s online behaviour. This national research has been launched in partnership with Optus and their Digital Thumbprint Education Program, and revealed some interesting insights into the attitudes of Australia's next generations towards online safety and selfie regret.

Social media has taken the world by storm, with Facebook reaching 1 billion active users in 6 years. Today, Facebook has already exceeded the population of China at 1.4 billion users, while YouTube boasts 4 billion views per day. The report reveals that young adults (aged 18-25) and parents in Australia share in this statistic, with over 9 in 10 (93% and 92% respectively) of those who have at least one active social media account being active on Facebook.

The research found that one in four parents (25%) own a social media account to monitor their child’s online activities.

It also found that teens say they obsessively compare their life and achievements with others, with one in three admitting they regretted one or more selfies they had shared online. A quarter of 18 to 25-year-olds said they were affected by FOMO – the fear of missing out – and so were hooked on social media. 

"While at first it may seem self-obsessed to put photos up on Instagram of yet another selfie or the lunch we are about to eat, there is actually more to it than that. Individuals are taking photos of themselves to share their experience with others – it’s keeping in touch, trying to connect and communicate.” - Mark McCrindle.

 Find out more about the findings of the study in the below infographic:



How effective Demographic Analysis can transform your business

Thursday, June 30, 2016

Numbers and people have long been two of the most important aspects of an organisation. Demographics is the merging of these two fundamentals and has a direct impact on the ability of organisations to effectively engage their clients and staff.


Why Demographic Analysis?

Demographic analysis gives insight into the age, sex and geographic composition of a population. There are many other characteristics of a population that can also be explored such as household income, employment status and educational background. Whilst it may be seemingly broad in scope, it is an essential first step to understanding your clients and staff.

Are your clientele predominantly Generation Y or are they Baby Boomers, are they in the higher income brackets or of lower socio economics? Asking these questions allows you to delve deeper into how to tailor your offering to your target market. Demographic shifts in society directly impact upon an organisation’s ability to shape their marketing, products and services to best suit their clients. Densification, mobility, purchasing behaviours, technology use, media consumption – these are all key measures which demographic and market analysis will help you understand.

In a constantly changing society, demographic analysis provides insight and visibility into the otherwise unseeable influences on our organisations and businesses.


Some McCrindle examples:


  

About McCrindle RESEARCH SERVICES

At McCrindle we are engaged by some of the leading brands and most effective organisations across Australia and internationally to help them understand the ever-changing external environment in which they operate and to assist them in identifying and responding to the key trends.


For us research is not a list of survey methods but a passion to find answers. It is more than a matter of questionnaires and focus groups – it is a quest to make the unknown known. The best research clarifies the complex and reveals insights in a way that can be seen and not just read.


Only when the findings are visually displayed, engagingly presented and strategically workshopped can they have maximum impact – and be implemented effectively.

Why the August count will mean more than the July count

Monday, June 27, 2016

It’s not the July count but the August one that will be most revealing for Australia. It’s the Census not the Election that will tell us most about ourselves. The election will reveal a lot about our political persuasions and policy preferences however it is the census that will offer far more clarity and detail about our nation. And in a political era where policy and budgetary settings extend beyond the election cycle, the data and forecasts delivered twice a decade in the census are becoming increasingly essential.

If the election is a national compass that will set something of the policy direction for Australia over the next 3 years, the census is a map that shows us who we are as a society in a big picture sense, as well as the contours that highlight our varied local communities and their detailed needs. The political custodians of the national compass will need a good understanding of the lay of the land, the changing terrain and the context in which national leadership operates if they are to guide us effectively.

The map this year will show a more complex Australia, more delineations than in the past culturally, economically and socially. The land of wide open spaces is becoming more urbanised, densified and diverse. The land of the middle class is showing more fractures and there are some fault lines emerging across this big land of opportunity. However, despite the differing terrains across this nation of communities, the census will show a sense of unity amongst the diversity- a contiguous landscape of varied elements.

The changes the census will show can be summed up in five words:

Bigger

Not only will the numbers show that we exceed 24 million, but that we’ve more than doubled in the 50 years since the 1966 Census when we hadn’t even hit the 12 million mark. Sydney will also be shown to have just hit the 5 million milestone- the first Australian city to do so and also more than twice the population of 50 years ago of just 2.4 million.

Older

Our population profile will no longer be a “population pyramid” as for the first time there will be more Australians aged over 55’s than under 20. The 1966 Census showed less than 1 million Australians aged 65 or over while this one will show more than 3.5 million. Those in the “aged” category of 85 plus have gone from less than 55,000 then to almost half a million now.

Urban

for the first time this Census will show one in four Australian households live in townhouses or apartments rather than detached houses- the highest figure ever, up from just one in ten in 1966. The six state capitals plus Canberra have grown from just over half the population (6.7 million people) to more than two-thirds (16 million) in half a century.

Diverse

In 5 decades the proportion of Australians born overseas has increased from 17% to more than 30%. Back then, 90% of migrants were born in Europe with those born in Asia comprising less than 1% of the population while today China, India and Vietnam are all in the Top 5 countries of birth.

Mobile

Australians travel more than ever and getting to work by private vehicle is still the main transport mode, used by 2 in 3 workers. More than half of all households have at least 2 cars compared to less than 1 in 10 households in 1966. Back then, 40% of households had no car compared to just 8.6% today.

The Australian Bureau of Statistics do a superb job in providing such a detailed social map, updated every 5 years, regarded internationally as world-leading and provided in full, free to all to access for their own journey. Like any good map it shows all the peaks and valleys without agenda or ideology. No gloss needed- the data provides the picture and it is up to those who access it to chart a way forward any point out the pitfalls. As we each plot our own points on August 9 we are in the process charting a national map that will provide navigation into the next decade- a decade that will likely be the most transformative in Australia’s history.

Four tips on how to structure an engaging presentation

Thursday, June 23, 2016

At McCrindle, our team of speakers are commissioned to deliver over 120 presentations to a wide range of audiences and clients, per year. These presentations consist of conference keynotes, training workshops, PD sessions, executive briefings, launch events as well as research presentations.

As expert communicators, we understand how to communicate data effectively, how to communicate a story and the art of delivering a presentation that doesn’t just inform your audience, but inspires them as well.

Throughout a presentation, it’s important to structure your content and delivery. Here are four I’s that we have developed which provide a structural overview of how to engage your audience when delivering a presentation.  

Interest

While the content of a presentation is generally the focus, creating interest in your audience before moving to the bulk of your presentation is key to engagement. Have you heard the saying, “When the student is ready the teacher will appear?” Well the same applies here. Creating interest, attention and focus from your audience prepares them to engage with the content of your presentation.

So how do you create this interest?

A strong introduction (that utilises the 4 C's) will help to create this Interest, whereby you build a Connection with your audience, establish your Credibility and provide Context for where this session fits in the overall scheme of things. Now, you are ready to move into your Content.

Instruct

After establishing interest with your audience and bringing them to a place where they are ready to listen to what you have to say, you can move to communicating the main content of your presentation. In addition to you being a presenter, consider yourself to be an instructor.

Involve

With attention spans being shorter than they have ever been before, when presenting we need to not just instruct but involve our audiences - particuarly the younger generations who are used to interacting with everything around them. Incorporating multi-modal delivery, discussions and activities within your presentation will help to involve your audience and keep them engaged with the material you are presenting.

INSPIRE

Lastly, and if not most importantly, an effective and engaging presenter will Inspire their audience. Inspiring is about motivation and application, about moving your audience from the rational to the emotional. Connecting not just with their head but with their heart as well. What do you want to send them out with?


About our Communication Skills Workshops

In our message-saturated society, getting effective cut-through, engagement and response is a critical challenge. This session will teach and model effective communication based on an understanding of the influence patterns of today’s audiences and strategies to best connect. This session covers:

  • Understanding workplace presentations
  • Preparing your presentation
  • Delivering your presentation
  • Mastering professional presentation techniques
  • Presenting complex data in engaging ways


About Ashley McKenzie - Team Leader of Communications at McCrindle

Ashley McKenzie is a social researcher, trends analyst and Team Leader of Communications at the internationally recognised McCrindle. As a trends analyst she understands the need for organisations to communicate with the emerging generations to effectively engage and motivate them. 

From her experience in managing media relations, social media platforms, content creation and event management, Ashley is well positioned to advise how to achieve cut through in these message-saturated times. Her expertise is in training and equipping leaders and teams on how to communicate across generational barriers.

Australia's Household Income and Wealth Distribution

Tuesday, June 21, 2016

Land of the middle class?

Australia has long been labelled the land of the middle class but the latest analysis of the Australian Bureau of Statistics wealth and income data shows that this is less the case today.

Household income by quintiles

This infographic of annual household income by quintiles (20% categories, each comprising around 2 million of Australia’s 10 million households) shows the spread of total earnings. While the average household annually earns just over $107,000, the top 1 in 5 earns more than twice this (exceeding $260,000) while the bottom 1 in 5 takes home around one-fifth of this (a little over $22,000). This means that while the bottom fifth of households get 4% of all income, the top fifth get almost half of all earnings (49%).

Highest fifth have incomes 12 times the lowest fifth

The top quintile in gross terms earn almost as much as the other 80% of households combined. In ratio form, the highest quintile households average 12 times the average bottom quintile income.

Gini coefficient shows growing income divides

The Gini coefficient is a measure of income spread, with 0 being perfect equality and 1 being total inequality. The latest data shows that it is now at its highest (most unequal) level ever at 0.446 compared to 0.417 in the mid 1990’s. In the 20 years since, average household gross incomes have increased 60% from $66,196 to $107,276 today while over the same period, incomes of the top 1 in 5 households (highest quintile) have increased by 74% from $149,552 to $260,104.

Highest earners also had highest income growth

In the decade since 2005-06, most of the household categories have seen income increases of 18-19% with an average increase of 24% ($20,956 increase from $86,320 to the current $107,276) while the highest quintile has enjoyed income increases of 30% ($60,528 higher than a decade ago, up from $199,576 to $260,104).

Household wealth by quintile

Accumulated earnings are best represented by net wealth, and this is where the changing economic landscape is even more dramatically presented. While the average Australian household has net wealth of $809,900, the highest quintile household on average has a net wealth more than three times this ($2,514,400) while the lowest quintile household wealth is just a fraction of this (4% of the average wealth, or $35,500). The lowest 20% of Australian households own less than 1% (0.9%) of the national private wealth while the highest 20% own 62% of the national private wealth.

Wealthiest 20% own 71 times that of the lowest 20%

The wealth of the highest quintile households on average is 71 times that of the lowest quintile households. While the average Australian household has seen wealth increase by 6% in the last 2 years (an increase of $45,400), the highest fifth of households have averaged increases of 8% (an increase of $189,500). Only upon reaching the fourth of five quintiles does the average household net wealth ($830,600) exceed the average house price ($720,000), while the highest quintile households on average have a net worth exceeding 3 average Australian homes.

Wealthy have net worth many multiples of income

The net wealth of the lowest quintile is just 1.6 times annual income, for the average household wealth is 7.5 times incomes while for the highest quintile, their wealth is almost 10 their average annual income, and more than 23 times the average Australian household annual income.

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