In figures released by the Australian Bureau of Statistics (ABS), there has been a 37 per cent increase in household wealth over the last decade. About 10 years ago, average household wealth hovered at $749,000.
The million-dollar mark is a 6 per cent increase from the 2015-16 report, which was $963,800 per household.
Despite strong growth for some, inequality in the distribution of wealth has not improved, according to the figures. ABS chief economist Bruce Hockman said that income and wealth inequality have remained stable over the past decade.
“While there was a marginal increase in inequality in the period leading up to the global financial crisis in 2007-08, since 2007-08 the distribution of income between households has remained relatively stable,” Mr Hockman said.
The Gini coefficient mentioned in the report shows that Australia’s inequality is at 0.328. It is measured by percentage of income per recipient. This means that if every resident earned the same amount, the Gini coefficient would be a 0 and if one person earned 100 per cent of the country’s income, the coefficient would be 1.
The Gini coefficient for wealth was slightly higher over the decade at 0.621. This means the wealthiest 20 per cent of people hold 60 per cent of the country’s income.
“Over the past decade, income growth has been slow with average weekly household incomes increasing $44 to $1,062 in 2017-18. In comparison, in the four years up to 2007-08, average weekly household income grew by $220 in real terms to $1,018,” said Mr Hockman.
“For low-income households, there has been an increase of $28 in average weekly household income over the past decade, while for high-income households, there was an increase of $57,” continued Mr Hockman.
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