The latest Australian Financial Report shows the wealth of Australians has been on a rollercoaster ride since the global financial crisis and that is reflected in a large decline in net worth, with the median net worth falling $11,400 in 2015 to $7,600, the lowest in Australia since 2007.
Photo: Supplied The wealth of people aged 65 and over fell by $16,200 to $9,500, the biggest annual decline in wealth in 15 years.
The median net wealth of men dropped $950 to $6,500.
The net worth of women dropped $2,300 to $4,600.
The decline in the median wealth of younger people aged 25 to 34 was $2.8 million.
The report also shows that Australians have experienced significant changes in the way they spend their money.
In 2015, a quarter of Australians spent money on the average, down from 30 per cent in 2007.
On average, Australians spent $941 a week on food and beverages, up from $873 in 2007, while they spent $1,200 a week for transport and accommodation.
This includes a $700 increase in the cost of the average Australian’s home, and an increase of $300 in the average cost of childcare.
Australians spend $4.7 billion on clothing, up $1.3 billion from $3.4 billion in 2007 and an average of $3,000 on footwear and clothing.
As a result, the median cost of living in Australia has gone up by $2 a week over the past decade, according to the Australian Bureau of Statistics.
“The average Australian spends $11 a week more on food, and $11 more on transport and childcare than they did 15 years ago,” the report states.
“Over the past 15 years, this has led to significant changes to the way Australians spend their time and money, as well as a significant decline in their financial wellbeing.
It’s the biggest decline in spending power since the financial crisis of 2008, and it is largely due to changes in how Australians spend time and income.”
The biggest falls in spending occurred in the $8,400 range, where the median household’s income fell $7000, while the cost to purchase a new car fell $1 a month.
Food prices rose in Australia by $1 and fuel prices rose by $3 per litre, according the report.
At the same time, the cost per household of buying a house in Australia fell by about $6 per month.
“The cost of housing has dropped from about $16 per week in 2007 to $8 a week today, with an average house price of $1 million, which is less than a third of the median house price,” the analysis states.
And the cost for the average person’s healthcare has also fallen, dropping from $2 for a family of four to $1 for a single person.
The report found that the median income for Australians has fallen by $5,600 since 2007 and the cost has also dropped by $10,600 over the last decade.
Topics:wealth-and-pension,economic-trends,wealth-policy,government-and,health,wealth,education,health-policy-and_practice,healthcare-facilities,affordable-healthcare,affairs,australiaFirst posted May 18, 2020 16:29:06Contact Matt McKeownMore stories from New South Wales