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Australia is one of the wealthiest countries in the world. In 2018, it became the country with the largest median wealth per adult, but it slipped to second place after Switzerland in 2019. In 2023, the median wealth per adult in Australia was just under $262,000 US, which is about $394,000 AUD based on 2023 exchange rates. Australia's per-capita GDP is higher than that of the UK, Canada, Germany, and France in terms of purchasing power parity. However, wealth inequality has also increased, with the richest 1% of Australians holding 21.8% of the country's wealth at the end of 2022, up from 19.6% in 2007. Australia's 200 richest people are now worth a combined $667.8 billion, with their wealth averaging $3.1 billion each.
| Characteristics | Values |
|---|---|
| Average wealth per adult | Ranked 5th in the world |
| Median wealth per adult | Ranked 2nd in the world |
| Average income | 11th highest among OECD countries |
| Per capita GDP | Ranked 18th in the world |
| Wealth growth | 8.7% year-on-year |
| Total wealth | AUD$10.9 trillion as of September 2019 |
| Wealthiest people | Australians are the wealthiest people in the world as of 2021 |
| Poverty rate | 11.8% as of 2013 |
| Government debt | 70% of GDP |
| Investor visa program | Introduced in 2012 |
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What You'll Learn
Australia's wealth compared to Europe
Australia is one of the wealthiest countries in the world. In 2013, it was ranked as the second-wealthiest country in the world based on average wealth per adult. In 2018, Australia became the country with the largest median wealth per adult, but it slipped back to second place after Switzerland in 2019. Australia's total wealth was estimated to be AUD$10.9 trillion as of September 2019.
Australia's per-capita GDP is higher than that of the UK, Canada, Germany, and France in terms of purchasing power parity. The country was ranked fifth in the United Nations 2022 Human Development Index and sixth in The Economist's 2005 worldwide quality-of-life index. Australia's sovereign credit rating is "AAA", higher than that of the United States.
However, wealth inequality exists in Australia. The highest 10% of households by wealth have an average of $6.1 million or 46% of all wealth, while the lower 60% have only 17% of all wealth. Australia's household wealth inequality level in 2018 was below the average among 28 wealthy nations surveyed by the OECD. Australia ranks sixth highest in over-indebtedness among 23 OECD countries, with 29% of low-income households over-indebted.
Compared to Europe, Australia's wealth grew at a faster pace, with a rebound from the 3% decline recorded in 2022 to a growth of almost 9% in 2023. This growth was driven by the continued rise in residential property prices and the snapback in the local share market.
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Australia's wealth compared to North America
Australia is one of the wealthiest countries in the world. In 2018, it became the country with the largest median wealth per adult, but it slipped to second place after Switzerland in 2019. Australia's total wealth was estimated to be AUD$10.9 trillion as of September 2019. Australia's per-capita GDP is higher than that of the UK, Canada, Germany, and France in terms of purchasing power parity. It is ranked 18th in the world.
Compared to North America, Australia has experienced faster wealth growth. While the Americas saw a 3.5% growth in 2024, Australia's wealth grew by almost 9% year-on-year, driven by rising residential property prices and a rebound in the local share market. Australia's sovereign credit rating is also "AAA" for all three major rating agencies, which is higher than the United States of America.
In terms of median wealth per adult, Australia ranks second in the world, ahead of the US. In 2013, Australia's average wealth per adult was US$403,000, nearly four times that of each US adult. However, Australia's poverty rate increased from 10.2% in 2000-01 to 11.8% in 2013.
Australia's wealth inequality is marginally higher than that of the US. The highest 10% of Australian households by wealth hold 45%-46% of all wealth, while the lower 60% hold just 17%. In contrast, wealth inequality in the US has declined recently, with a decrease in the number of adults with less than US$10,000 in wealth.
Historically, Australia's economic strength relative to North America has fluctuated. In the late 19th century, Australia had the highest GDP per capita in the world due to its natural resources. However, as its population grew, its GDP per capita dropped relative to countries like the US. In the second half of the 20th century, Australia shifted its trade focus from North America to East Asian markets. Additionally, the 1990s recession in North America impacted Australia due to their close economic ties.
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Australia's wealth compared to Asia
Australia is one of the wealthiest countries in the world. It has the 11th highest average income among the OECD countries and is the third or fourth richest country per adult. In 2018, Australia became the country with the largest median wealth per adult, but slipped back to second highest after Switzerland in 2019. In 2024, Australia's wealth grew at a faster pace than the global average, at almost 9% year-on-year.
In comparison, the wealth of Asian countries varies widely. The economic growth of Asian countries has been rapid, but rich countries still remain very rich, possessing more than 60% of the world's total wealth. The World Bank estimates that in 2014, the total wealth in OECD countries was more than $700,000 per person, compared to approximately $26,000 in lower-middle-income countries.
The World Bank's report "The Changing Wealth of Nations" highlights the differences in physical wealth between Australia and some Asian countries. In 2014, the World Bank valued physical wealth in Australia at around $310,000 per person, while Indonesia's was approximately $15,000 per person. China's stock of physical wealth in 2014 was around $30,000 per person, much lower than that of OECD countries.
Despite Australia's overall wealth, there is a significant wealth inequality within the country. The highest 10% of households by wealth hold about 45-46% of all wealth, while the lower 60% hold just 17%. Australia also has a high level of household indebtedness, with many households considered ''over-indebted' by the OECD.
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Australia's wealth compared to South America
Australia is one of the wealthiest countries in the world. It has the 11th highest average income among the OECD countries and is the third or fourth richest country per adult in the world, behind Switzerland and sometimes the US. In 2019, Australia's total wealth was estimated to be AUD$10.9 trillion.
In terms of South America, Australia's wealth compares favourably. While there are no estimates of South America's total wealth as a whole, Brazil is the continent's wealthiest country, with a total wealth of $2.7 trillion in 2022. This is less than half of Australia's total wealth of $7.2 trillion in the same year.
Australia also has a higher per capita GDP than all South American countries. Australia's per capita GDP is ranked 18th in the world, while the highest-ranked South American country, Uruguay, is 57th.
In addition, Australia has a lower poverty rate than many South American countries. In 2013, Australia's poverty rate was reported to be 11.8%, while the poverty rates of several South American countries, such as Colombia, Peru, and Venezuela, were above 30% in the same year.
However, it is worth noting that wealth inequality in Australia is high compared to other developed countries. The highest 10% of households by wealth hold about 45% of all wealth in Australia, while the lowest 60% hold just 17%. In contrast, some South American countries, such as Uruguay and Argentina, have lower levels of income inequality, according to the Gini coefficient.
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Australia's tax policies compared to Scandinavian countries
Australia's tax policies differ from those of Scandinavian countries in several ways. Scandinavian countries, such as Sweden, are known for their high taxation rates, with personal income tax rates ranging from 29% to 60%. In contrast, Australia's income tax rates are lower, although Australians pay more personal income tax as a share of government revenue compared to other advanced economies, except for Denmark.
One key difference between Australia and Scandinavian countries is the impact of taxation on economic growth. Research from the Australia Institute's Nordic Policy Centre suggests that higher taxation levels in Nordic nations are correlated with stronger economies, higher average incomes, and improved social outcomes. This contradicts the common belief that taxation hinders economic growth. Scandinavian countries with higher taxes often invest more in education, health, public transport, childcare, and infrastructure, contributing to a stronger economy and reduced inequality.
Additionally, Scandinavian countries have a different mix of tax policies compared to Australia. They raise tax revenue through individual income taxes, corporate income taxes, social insurance taxes, taxes on goods and services, and property taxes. While income taxes are a significant source of revenue, sound tax policy also considers the potential economic distortions caused by certain taxes, such as property taxes. Capital allowances and long-term reforms that support investment are also important considerations in corporate taxation.
In contrast, Australia's compulsory superannuation scheme, where employers contribute 10.5% of an employee's wage, is similar to social security contributions in Scandinavian countries. However, Australia's tax system may need to evolve to meet future demands, such as spending more on aged care and disability services, as noted by the Australian Treasury's secretary, Steven Kennedy.
Overall, while Scandinavian countries have higher taxation rates, the evidence suggests that higher taxes contribute to stronger economies and improved social outcomes. Australia can learn from these countries' tax policies and their impact on economic growth, wellbeing, and social development.
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Frequently asked questions
Australia is one of the wealthiest countries in the world. It has the 11th highest average income among the nations that make up the OECD and is the third richest country per adult in the world, behind Switzerland and the US. In 2023, the median wealth per adult in Australia was just under $262,000 US, which is about $394,000 AUD.
Australia's per-capita GDP is higher than that of the UK, Canada, Germany and France in terms of purchasing power parity. In 2023, only Luxembourg, with a population of well under one million, boasted a stronger median wealth per adult than Australia. In 2021, Australia's median net worth of an adult was higher than Belgium and New Zealand.
Australia's wealth is attributed to a resilient Australian dollar, property ownership levels, and a strong labour market. In 2013, Australia's wealth was also attributed to areas of the country where mining and resource-based industries and services are mostly located.
