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.

Welcome to our blog...

We have a passion for research that tells a story, that can be presented visually, that brings about change and improves organisations. And we hope these resources help you know the times.

Our Social Media Sites

Facebook | McCrindle Research Social Media YouTube | McCrindle Research Social Media Twitter | McCrindle Research Social Media Flickr | McCrindle Research Social Media Pinterest | McCrindle Research Social Media Google Plus | McCrindle Research Social Media LinkedIn | McCrindle Research Social Media Mark McCrindle Slideshare


Last 150 Articles


Tags

2016 volunteering energy technology education children ageing population celebration brand experience work-life high density apartments educhat workplace culture life potts point Kiwi entrepreneurs of today population growth rise of local education sector easy rider urban taskforce teacher clothing names faux-ciliser baby boomers 2016 census results 23 million brands narcissism the great screenage qualitative research brisbane sydneysiders TDE futurist wealth inequality state Christmas in Australia February 16 baby name wage spend conference keynote speaker innovation cultural diversity manly gen z Gen Y monarchy conferences earn new office car storytelling church baby boom society trends royal influence ACF17 changing face of sydney affordable CBD property price Hills Shire Council gig marrickville trends of 2016 litter group professional speaker shifts office opening world youth day mccrinlde 24,000,000 sydney property market marketing easter public speaking mythbusting australians staying home more global retail speakers slideshare events Real Estate kate middleton customer sector wide study public holiday megatrends relevant Australian Bureau of Statistics commute seasons trends know the times ashley mckenzie princess charlotte media society optimistic child care Queensland: QLD cars change in depth interviews personalities Australian Families TED SMART breakfast employers generation alpha australian community trends report forecasting greatness Royals generational trends digital Skilling residents demography paying to work Kirsten Brewer social analyst youth trends of 2017 focus group "know the times" VET sector Retail Christmas lunch holidays jobs of the future professional presenters earning baby names australia report Territory investment visual Christchurch shopping aged care puzzle outsourcing motivate commuters skills community case study Cobbitty-Leppington fears earnings overcast australian socialising friendship TED talk teleworking quote Generation Y moderators guide cancel plans father's day faith australian communities trends report divorce rate proactive hornsby budget builders population milestone baby names report showreel statistics ACT Report school research data the hills shire sector wide event conference speaker woolworths educated future neutral bay eliane miles report sentiments census data Population Clock mythbusters entertainment local Australian Communities Trends New Zeland Sydney keynote speaker presentations the changing face of Willowdale menai click vegetarian dessert McCrindle Speaker Christmas research challenge environment aussie culture future proofing average sydneysider Mark McCrindle Australians Channel 7 social commentator couple the average aussie Adelaide NT Mount Annan-Currant Hill engagement typical australian hills shire survey New Zealand sydney event national private wealth HSC donation research pack happiness demographer teaching culturally diverse engage year 7 career income SA shopping centre financial fears internships social cash participants Engineering Manager women baby learning styles presentation Maxim Accounting buildings consumer Hornsby Shire Council prince george GPO daily commute CPI emerging trends bureau pharmacy story ferry bus Myth Love hunger workshop Sydney’s south west low density future of education social researcher millenials micro World Water Day NBRS Architecture growth business index etiquette DESTEL area year 12 thought leadership IT Specialists cooking parenting demographic trends grandparents award news Sydney Hills Business Chamber housing millionth survey design REIV Conference socialites ageing house generation impact poker master Merry Christmas conference presentation students urban sector global generations pyrmont shopper's pick Real Estate Institute of Victoria collaboration newspaper insight office home Andrew Duffin mccrindle tea the hills unaffordable young people The ABC of XYZ cost of living chairty NFP event work media activity property market program house price culture huffington post real NBRS 1994 Aussie aged care sustainable mover and shaker snapshot recap gold coast youth unemployment learner geomapping investor Black Friday Sales darwin meals responsive wedding experience 2020 salary social enquiry victoria generation Z Northern Territory logan TAS group session January 26th urban development FOMO 2013 Tuesday Trend safe shbc urban living census fail speaker living social media acf15 NEETs live the dream house prices grave decision Sydney population sydney metro jobs hobart communications university degree Western Australia parents tattoos offenders 1968 google ACT business seasons greetings economic workforce 40 million medicine Gen Z Expert 10 years university balance online Australian community trends demographic transformations Australian Home Do It Yourself WA australian real estate new york times employment crime ABS religion student South Australia annual income leadership workshop townhouses marriages interactive weather Wodonga identity NSW publication social change non profit the australian dream workplace dream rising house prices village capital city housing growth wellbeing market research school students coffee intern 1975 entrepreneurial investing census 2016 poor alpha belief New South Wales McCridle Australia Day 2017 wolloomooloo Australian Dream sydney speaker transport study work from home TEDx Speaker professional services city cancelling event future of work community engagement faux-cilising teachers summer omnibus long weekend emerging technologies communication Northern Beaches Christian School communicate family internship infographics contiki Black Friday tableau cost wages SMSF gen alpha Caregiver sydneysider McCrindle Keynote Speakers forecast communities Charlotte product volunteering data Tasmania national wealth forum networking school satisfaction Performance Sentiment Index consumerism care support Sydney apartment global financial crisis renter of the future growth of sydney Elderslie-Harrington park Northern beaches Event retirement unemployment award winner priorities volunteer Sydney Lifestyle Study train Christmas season christmas 2017 choice workers christmas trees speajer suburbs dare to dream home ownership hills charities baby name trends eliane politics Macquarie University property trend tuesday mobile suburb thrive FPA staff christmas apartments cold government public transport cloudy days gender increasing densification casual 2012 Births wealth distribution charity social life Generation X middle class careers trades anzac Lower Hunter Region pharmacies Financial Planning Association of Australia list Christmas day weather blaxland goal crows nest analysis curiosity sports Australian Trends visualisation social shifts research report royal family mccrindle research tea schools students online shopping christian teach suburban living Valentine’s Day christianity office space nativity scene winter Aussies population domestic Netflix renting research on coffee selfie professional development Christmas day JOMO tips education future report Geoff Brailey Res Vis Queensland sunny days men not for profit research define leader Social Trend dreaming bondi friends generations lifestyle hello fresh marriage trend Australia Day speakers pack cancelling plans wealth and income distribution purpose post rationalism Jura Australia australian communities forum leadership ACF2017 schools 2017 the lucky country social issues families waverton Vocational education community event McCrindle Speakers authenticity high school rental stress Hunter Valley optus my business awards infographic rent Scouts Black Friday in Australia social analysis vegemite business performance trends analyst entrepreneur millennials optus data mccrindle in the media Research Director language mining boom supply and demand Tuesday Trends households financial australia travelling royal Christmas presents baby names Australia street perth food bank going out employmee ideas stats affordability data analyst Bathburst Canberra keynote Wellington follow financial dreams SRE growing population happy holidays owning a home sunburnt country twentyseventeen training Mark McCrindle in the media Work place System's Architect weekly earnings organisations stay home capital cities local community in the media What is food insecurity? equip winter blues future proof small business economy ultimo Business analysis social impact healthy future Crime Rates deloitte sydneycity cartodb house price rise social trends wealth and income research food census ashley fell organisational culture ease of travel mother's day money ACF 2016 holiday criminal brand learning 24 million rain Word Up employmer giving donate financial independence panel google for education EFF royal baby Deaths rich finance research visualisation coffee lovers social researchers professional lalor park food insecurity tuesday Research Executive micro apartments screenage future-proof ethnography goals screenagers Christmas Stats norwest Australian Population dreams Australian Census travel REIV National Conference insights James Ward tertiary education sydney hills average aussie Christmas data 2015 spirituality infographic wall divorce rule keeper demographic wealth 1980 2016 census mentor faux-cilise social commentary not-for-profit not for profit Lower Hunter housing market who is generation z toys tv sun 2014 debt sydney market emerging generations data visualisation Wagga Wagga resource work mates PSI Assistant Store Manager media release land of the middle class English cica young australians ipswich research services social research world Financial Planning Week Duchess of Cambridge learn high density living facts Melbourne Australian demographics demographics DIY daily telegraph water Channel Seven #censusfail commuting VET US home owner VIC repayments staying in media commentary australian social research resilience younger generations property development Northern Beaches TEDx Financial Planning Association fresh ACF innovative population map gig economy meetings graphs financial planning plans housing trends The Daily Edition collaborative mccrindle focus groups financial future baby name predictions cultural diveristy social lives housing affordability Australian schools education research local communities household national crime rates urban living index environmental scanning Education Future Forum high density mateship Jura Coffee results states global internet Australian communities hopes public speaker census results mortgage personal growth moreton bay average Australian researcher volunteers nfp relational debate education future Gen X video future of shopping digital economy

Archive