As the wealth of all Australians increases, women are well on their way to closing the gender wealth gap, now holding 89 per cent of the wealth of their male counterparts.
The second edition of the Roy Morgan Wealth Report has found that the average net wealth gap is now much smaller than it was pre-global financial crisis, when the female average was just $236,000 – just four-fifths of the male average of $296,000.
According to the survey, the average net wealth per capita of Australians has grown from $285,600 to $424,200 in 2019.
The average net wealth calculation considers an individual’s personal assets minus their debts.
The 59.7 per cent average increase is an increase in real terms that has allowed for inflation of nearly a quarter (23.8 per cent), it was reported.
While both genders have increased their net wealth, Roy Morgan highlighted that the average woman has experienced a 69 per cent increase to $400,000 from the 2007 figure of $236,000.
Over the same time period, men have seen a 52 per cent increase in net wealth, from $296,000 to $449,000.
In a statement explaining the findings, Roy Morgan considered that the greater rate of wealth accumulation over the last 12 years has allowed women to gain significant ground towards wealth equality between genders.
Commenting on the report’s considerations, the market research company’s CEO, Michele Levine, said: “A great deal of coverage and public comment is focused on income and superannuation inequality between the genders, but what we have looked at here is a more holistic view of each gender’s average financial position.”
She said net wealth has been used “as a more relevant single measure of economic circumstances incorporating all assets, including superannuation and subtracting debt”.
Remarking on the findings, Ms Levine said, “A major contributing factor towards the closing of the wealth gap for females appears to be their increased participation in the workforce, which has gone from 56.4 per cent in 2007 to 61.9 per cent in 2019.”
“Also, the value of owner-occupied homes in a rapidly rising market, when jointly owned, is a contributing factor to closing the gender gap, as both sexes are gaining equally from what is generally the household’s biggest asset,” she continued.
The Roy Morgan report also showed that Perth is no longer a haven for Australia’s wealthiest people.
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