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Thursday, 24 June 2021

Millionaires of Australia

In an annual study produced by investment bank Credit Suisse the median level wealth for Australian adults was calculated to be $A315,380, pulling ahead of previous #1  country - Belgium. However, Australia 'only' ranked fourth in mean wealth (at $A640,852 per adult) due to averages being skewed by a small number of extremely wealthy people in the top three countries - US, Hong Kong and Switzerland (which conversely means that Australia would be considered more egalitarian than those countries).

Currently 9.4 per cent of Australian adults are millionaires, and ranks behind only Switzerland (15 per cent) for millionaire density, and ahead of the United States (with 8.8 per cent).

The report predicts that over the next four years the number of millionaires in Australia will rise by 70 per cent to 3.1 million, which is just below one quarter of the adult population! The calculations included the value of owner-occupied houses, but also took into account an individual’s debt. So it measures net wealth rather than simply gross assets.

In general the international growth in the number of millionaires is quite high, with the report predicting that the number of millionaires will swell by 49 per cent across the board during the next four years. Australia will add to its tally of millionaires faster than the UK (where numbers are predicted to rise by 50 per cent) and the US (where millionaire numbers are expected to increase by 28 per cent).

With the title 'millionaire' rapidly losing its ability to define who can be considered 'rich', a new measure of 'rich' is the ‘very high net worth individual’ (VHNMI) which consists of those people having $US50 million ($A66 million) net wealth. Australia currently has 3262 VHNMIs.

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