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


Tags

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

Archive