Original article by Jonathan Shapiro
The Australian Financial Review – Page: 21 : 19-Jan-18
New figures show that Australia’s household debt-to-income ratio has risen by three per cent to a record 199.7 per cent, which UBS notes is one of the world’s highest. The increase is largely due to the Australian Bureau of Statistics’ decision to include the debt of self-managed superannuation funds in the key indicator for the first time. UBS has forecast that the debt-to-income ratio will peak at around 205 per cent, and it has warned that rising household debt may affect demand for housing credit and the earnings of major banks. However, UBS is upbeat about the outlook for non-bank lenders.
UBS HOLDINGS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY