Income and wealth distribution by state

Monday, September 12, 2016

High wealth, high income

What are the high wealth, high income states? Western Australia is leading in terms of both income and wealth, with $133,224 and $952,500 respectively, which is well above the average household annual gross income of $107,276 and average household net worth of $809,900.

However, over the last year particularly, the impact of the mining slowdown has affected earnings and also wealth. The reliance on the mining sector and the fluctuation of income and wealth based on the fortunes of this one sector are highlighted in the fact that between 2012 and 2014, the household incomes of those in Western Australia rose by 21% which was almost double that seen in the leading east coast state of New South Wales, and the wealth in this 2 year period increased by 24%, again almost double on what we saw from the best performing east coast states.

Top performing states

New South Wales is the most consistent performer in wealth and income, and the only other state to have both income and wealth about the national average (12% on income and 13% on wealth). It has a stable economy, with the largest infrastructure investments in the nation, a broad base of industries and consequently solid forward forecasts.

The Northern Territory, like Western Australia has been fluctuating, and while it has average income above the national average, its wealth is below the national average. Queensland, while improving in both income and wealth is below the national average on both as well. And Victoria while seeing solid gains in both income and wealth, with wealth largely due to the housing market above the national average, its income has still not quite reached the national average.

Worst performing states

The worst performing states are Tasmania, with incomes 26% below the national income and wealth average, as well as South Australia which is 19% below the average household income and 20% below the national net wealth.

While household income gains have been low in some states (a total of 6% gain since 2012 in South Australia, Tasmania and the Australian Capital Territory over the last 2 years), at least all of the states have had an increase in incomes, but such has been the change in property prices and the rise in living costs, the Northern Territory, South Australia, Tasmania and the Australian Capital Territory have all seen a slight fall in average household wealth since 2012.

The New Australian Dream

Thursday, September 01, 2016

Owning your own four bedroom house on a decent block of land with a big backyard and outdoor swimming pool used to be the quintessential 'Great Australian Dream'. But with rising property prices and increased living costs, that dream is being redefined.

what is the Average Australian Profile?

The average full time annual income in Australia is $80,000, which is bumped up a bit because of high income earners. Even though we are living longer now than a generation ago, the average retirement age is little changed, at 61.5 years.

The cost of housing is up with average rent prices per week at $485/week and the average house price (capital city) is $765,730. In Melbourne it is well above this and in Sydney it is around $1 million. This is where the challenge is for Australians: 40 years ago the average house price was around 5 time’s average earnings and now you can see it is almost 10 times the average annual fulltime earnings.

Other than affordability, what else are Aussies looking for?

Lifestyle is key. People are opting to live in higher density areas for the sake of convenience and location- within close proximity to transport, restaurants – the café culture as it has been called. Our Urban Living Index shows a strong correlation between the most urban/densified suburbs and those with the highest liability ratings.

Australians are opting for a lifestyle of Minimalism - we are 'decluttering' our lives and putting more value on the intangibles like travel. Generation Y aren’t opting for a big home with garages to store all their stuff but more of a focus on the easy-livability of apartment living. Indeed many baby boomers are downsizing from their larger homes in the suburbs to this style of living too.

Renting, as opposed to buying, what some of the benefits?

The ability to change locations easily is well regarded – the average Australian renter stays just 1.8 years per home. Our research shows that 1 in 3 renters are actually 'choice renters' and they choose to rent for lifestyle reasons, not primarily for affordability reasons. These choice renters are twice more likely to be living in medium and high density housing than the average Australian and they are almost 10 years younger than the average Australian. The ability to upsize and downsize easily and the flexibility to travel for extended periods of time is a driver for them. ‘Rentvesting’ is also becoming a ‘thing’. This is where people choose to rent in an area they like, but buy somewhere more affordable and use this as an investment

Generation Y are struggling to attain the Great Australian Dream – are they going to be ok?

There is a challenge emerging of "generational inequity" as shown by this infographic:

Gen Y’s have the least wealth of the working generations and their proportion of Australia’s wealth is less than half their demographic share, while the Baby Boomers who are a quarter of the population, own more than half of Australia’s wealth. (More information on this topic can be found here)

This is why Gen Y is reinventing the Aussie Dream and while they do still like the idea of owning something of their own, it is not just the big home with the back yard in the suburbs. But many in this generation will be absolutely fine thanks to the massive intergenerational wealth transfer set to happen in the next 20 years as those aged over 65 transfer much of their total wealth of $2.5 trillion.

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.

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


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