Young and lowly paid most vulnerable: RBA

Original article by John Kehoe
The Australian Financial Review – Page: 9 : 24-Jun-20

Research from the Reserve Bank of Australia has found that most households had sufficient wealth at the onset of the coronavirus-induced recession to ride out a temporary fall in income. However, only about half of younger Australians had enough liquid assets such as savings to pay their expenses for three months. A similar percentage of workers in sectors that were hardest hit by coronavirus lockdown measures had limited capacity to meet their expenses at the start of the recession. The RBA research is based of the findings of the Household and Labour Dynamics in Australia survey in 2018.

CORPORATES
RESERVE BANK OF AUSTRALIA

New report breaks down Australians’ personal wealth by electorate – and shows PM wealth cluster

Original article by Roy Morgan
Market Research Update – Page: Online : 4-May-20

The 5th Edition of the Roy Morgan Wealth Report delivers additional unique insights by analysing the distribution of personal wealth across electorates. The House of Representatives takes in 151 electorates. At the end of 2019 the average per capita Net Wealth in Australia’s wealthiest electorate, Wentworth in Sydney’s eastern suburbs, was $1,060,000 and median Net Wealth was $338,000. In the poorest electorate, Spence in Adelaide’s outer northern suburbs, the average per capita Net Wealth was $187,000 (17.6% of the Wentworth figure) and median Net Wealth just $75,000 (22%). Even before the impacts of the bushfire crises and COVID-19 (coronavirus) there was a chasm between the most and least wealthy; this is likely to widen due to the impact of the coronavirus. The Roy Morgan Wealth Report also examines the wealth of the electorates represented by Australia’s Prime Ministers. Fourteen of the electorates held by post-WWII PMs still exist. Of these, six are among Australia’s 10 wealthiest overall. These include the seats of incumbent Prime Minister Scott Morrison (whose electorate, Cook, is the 6th wealthiest) and his two immediate predecessors, Malcolm Turnbull (Wentworth, No. 1 on the list) and Tony Abbott (Warringah, No. 2).

CORPORATES
ROY MORGAN LIMITED

Debt down; Australians have never been richer

Original article by Matthew Cranston
The Australian Financial Review – Page: 3 : 20-Dec-19

Average household wealth increased by $10,698 in the September quarter, to a record $428,573.5 per person. The Australian Bureau of Statistics data also shows that the household debt to assets ratio eased from 18.9 times to 18.5 times during the quarter, which coincided with two interest rate cuts and income tax relief. Meanwhile, the household savings rate rose from 2.7 per cent to 4.8 per cent in the three months to September, but growth in consumption fell to 0.1 per cent, compared with 0.4 per cent in the June quarter.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

Wealthier Australians are less satisfied with their bank

Original article by Roy Morgan
Market Research Update – Page: Online : 20-Nov-19

Satisfaction levels with the banking industry are related to an individual’s level of wealth, new research from Roy Morgan shows – with the wealthiest 30% of Australians less likely to be satisfied with their banking relationships (75.4%) than the middle 40% (80.1%) or the bottom 30% (84.7%). The wealth-linked difference in banking satisfaction levels has grown more extreme over time. In 2013 the satisfaction level of the wealthiest Australians was 80.8% and that of the poorest Australians was 82.8%, a gap of just 2%. This figure has more than quadrupled to 9.3%. Six years ago there was no significant difference between the satisfaction of the middle 40% and that of the wealthiest 30%, but these levels have also grown steadily apart, opening up a gap of 4.6%. These insights come from Australia’s most extensive, longest study of consumer financial behaviour. Running continuously for more than 20 years, it involves over 50,000 in-depth, face-to-face interviews in respondents’ homes each year.

CORPORATES
ROY MORGAN LIMITED

Figures show Australia’s wealth is growing but benefits are not spread evenly

Original article by Charis Chang
News.com.au – Page: Online : 31-Oct-19

The Roy Morgan Wealth Report shows that Australia’s net wealth has increased by 90.5 per cent, or $4107bn, between 2007 and 2019. The nation’s wealth increased by 47.6 per cent when the CPI is taken into account. The net wealth of individual Australians has also increased since the global financial crisis, but this increase has not been spread evenly across the population. Median net wealth has increased by 26.3 per cent to $1.7m, although this has fallen by 2.2 per cent when adjusted for the CPI. However, the top decile of Australians have increased their wealth by 60 per cent since 2007, while the lowest decile remains in negative wealth, with their net wealth rising from -$20,000 to -$19,000. Roy Morgan CEO Michele Levine says wealth inequality can breed distrust in society.

CORPORATES
ROY MORGAN LIMITED

New Roy Morgan Report Fills the Information Gap on Australians’ Net Wealth

Original article by Roy Morgan
Market Research Update – Page: Online : 30-Oct-19

There has been no shortage of attempts to measure the true state of wealth in Australia. Some have focused on income, others have tracked debt and yet others have tried to quantify assets. They have supplied pieces of the puzzle. But no-one has been able to provide the full picture on the Net Wealth held by individual Australians – until now. The Roy Morgan Wealth Report 2019 fills the gaps, providing evidence-based answers to the lingering questions about wealth in our nation. By calculating total personal assets and subtracting total personal debt, the report offers the first fully detailed data on Australians’ Net Wealth. This information matters because wealth, and the way it is distributed, is intrinsically linked to Australia’s economic resilience and future. Roy Morgan is able to deliver this information thanks to Australia‚Äôs most extensive and longest-running study of consumer financial behaviour. The study, which has been running continuously for more than 20 years, involves over 50,000 in-depth, face-to-face interviews conducted in respondents’ homes each year. This provides privileged access to every aspect of Australians’ lives, including fully detailed financial positions, providing data of unmatched depth and breadth. It enables analysis of genuine Net Wealth by age, gender, location, employment type and more, showing precisely what form that wealth takes, how evenly or otherwise it is distributed, how it has grown, and what further shifts are likely in coming years.

CORPORATES
ROY MORGAN LIMITED

Baby Boomers put squeeze on the young

Original article by John Kehoe
The Australian Financial Review – Page: 8 : 19-Aug-19

The Grattan Institute contends that people aged 40 contribute twice as much in tax to support older Australians than Baby Boomers did at the same age, after adjusting for inflation. The percentage of households over the age of 65 that pay tax has fallen from 27 per cent in the mid-1990s to 17 per cent, while the Grattan Institute notes that the wealth of households under the age of 35 has barely changed since 2004. It puts forward a number of suggestions to address this intergenerational divide, including taxing superannuation earnings in retirement at 15 per cent and lifting the pension age.

CORPORATES
GRATTAN INSTITUTE, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. PRODUCTIVITY COMMISSION, KPMG AUSTRALIA PTY LTD

Females closing the gender wealth gap

Original article by Roy Morgan
Market Research Update – Page: Online : 6-Aug-19

The latest findings from the second edition of the Roy Morgan Wealth Report show that the average net wealth (personal assets minus debt) per capita of females in Australia in the year to March 2019 was $400k, equal to 89% of the male average of $449k. This gap is now much smaller than it was in 2007, prior to the global financial crisis, when the female average was only $236k (or 80% of the $296k male average). Overall, the average net wealth per capita of Australians has grown from $285,600 in 2007 to $424,200 in 2019, an increase of 59.7%. This is an increase in real terms (allowing for inflation) of 23.8%. Both genders have shown increased per capita net wealth, but the average woman experienced a 69% increase (from $236k to $400k), while men showed an increase of only 52% (from $296k to $449k). The report is drawn from over half a million in-depth face-to-face interviews conducted in Australians’ homes over the period from 2007 to 2019.

CORPORATES
ROY MORGAN LIMITED

Perth loses top personal net wealth ranking to Sydney

Original article by Roy Morgan
Market Research Update – Page: Online : 6-Aug-19

The second edition of the Roy Morgan Wealth Report shows that Sydney boasted the highest average net wealth (personal assets minus debt) per capita in the year to March 2019, at $570,000. It was followed by Melbourne ($491k), the ACT ($441k) and Perth ($358k). In contrast, Perth had the highest average net wealth per capita in the year to December 2007, at $338k. This was well ahead of Sydney on $292k and Melbourne on $268k, which also trailed the ACT ($329k). The report is drawn from over half a million in-depth face-to-face interviews conducted in Australians’ homes over the period from 2007 to 2019.

CORPORATES
ROY MORGAN LIMITED

Australians’ net wealth shows long term gains

Original article by Roy Morgan
Market Research Update – Page: Online : 2-Jul-19

The second edition of the Roy Morgan Wealth Report shows that the value of assets held by Australians has almost doubled from 2007 to 2019 (up 96.0%). This is faster than the increase in debt of 78.6% over the same period. As a result, net wealth is now 98.7% higher in 2019 than it was in 2007. Even after allowing for population growth and inflation, the average Australian is better off. The second edition of the Wealth Report focuses particularly on how net wealth has changed since just before the onset of the global financial crisis. Australia performed very strongly over the past 12 years compared with other OECD nations – particularly in Europe, where many nations went backwards over the same period. The report is drawn from over half a million in-depth face-to-face interviews conducted in Australians’ homes over the period from 2007 to 2019.

CORPORATES
ROY MORGAN LIMITED