Household wealth plunges by $10,000, the most since 2011

March 29, 2019roymorgansocial Leave a comment

Original article by John Kehoe
The Australian Financial Review – Page: 9 : 29-Mar-19

Data from the Australian Bureau of Statistics shows that the nation’s overall household net worth fell by $257bn in the December 2018 quarter. This equates to an average of $10,198 per household, and followed a decline of $2,263 in the September quarter. The ABS notes that household net wealth had not declined for two consecutive quarters since the final three months of 2011. Factors such as weaker housing prices and a sharemarket slump weighed on household wealth in the December quarter.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AMP CAPITAL INVESTORS LIMITED, STANDARD AND POOR’S ASX 200 INDEX, HSBC AUSTRALIA HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA

Property and share market slump likely to delay retirement plans for over 420,000 Australians

December 17, 2018roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 17-Dec-18

New research from Roy Morgan shows that the number of Australians who intend to retire in the next 12 months is estimated at 426,000, a 30% increase on the level seen in 2008 when it was 328,000. Men currently represent 220,000 intending retirees. Meanwhile, the average gross wealth (total assets excluding owner-occupied homes) of intending retirees is $331,000, up from $237,000 since 2008. Up to now, superannuation has been playing an increasing role in retirement funding and currently represents 69% of the gross wealth of intending retirees, up from 53% in 2008. Although the average debt level for this group is currently only $26,000, it does reduce their average net wealth to $305,000, which is generally inadequate for self-funded retirement. The overall conclusion is that intending retirees will be relying on government benefits for some time yet, given the fact that the Association of Superannuation Funds of Australia estimates that an individual would need $545k and a couple $640k for a ‘comfortable lifestyle’. Roy Morgan’s Single Source survey is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 400 who intend to retire in the next 12 months.

CORPORATES
ROY MORGAN LIMITED, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

CBA the most popular bank with wealthiest 10% of Australians

October 8, 2018roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 8-Oct-18

New research from Roy Morgan shows that the CBA is the clear leader when it comes to banks used by the wealthiest 10% (top decile) of the population, with more than a third (36.7%) being customers. This segment is particularly significant as identified in the "Roy Morgan Wealth Report", which shows that the top decile accounts for 48.3% of Australian households’ net wealth. The big four dominate when it comes to the banks used by the wealthiest 10% of Australians. Individuals in this important segment generally deal with more than one bank, but the banks with the highest penetration are CBA (36.7%), Westpac (25.7%), ANZ (23.7%) and NAB (22.5%). A number of smaller banks have much higher customer penetration in this segment compared to what they have in the total population, including St George (11.3%), ING (7.6%), Macquarie (4.9%) and Citibank (3.9%). These are the latest results from Roy Morgan’s Single Source survey, which is based on in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their own homes, including over 5,000 of the wealthiest 10%.

CORPORATES
ROY MORGAN LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ST GEORGE BANK LIMITED, ING BANK (AUSTRALIA) LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, CITIBANK LIMITED

Wealth inequality in Australia is getting worse

September 24, 2018roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 24-Sep-18

The first edition of the Roy Morgan Wealth Report shows that net wealth has grown strongly in Australia, but the biggest gains have been among the wealthiest 10% of Australians. They had an average per capita wealth of over $2 million and held 48.3% of net wealth in 2017, compared to 46.8% in 2007. Meanwhile, the poorest 50% of Australians have seen their total share of net wealth fall from 3.9% to 3.7% over the last decade. The report also shows that growing personal wealth is highly correlated to income level, with those earning over $130,000 having an average net wealth of $1.2 million, which is nearly five times those earning less than $15,000 ($248,000). The report is based on over half a million in depth face-to-face interviews conducted over the decade from 2007 to 2017 across Australia.

CORPORATES
ROY MORGAN LIMITED

Australian wealth growing faster than debt

September 24, 2018roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 24-Sep-18

The first Roy Morgan Wealth Report shows that the value of assets held by Australians continues to grow faster than debts, resulting in average per capita net wealth being 30.5% higher in 2017 than it was in 2007 in inflation-adjusted terms. The report shows that average personal assets are now worth 7.9 times average debts, compared with 7.2 times debts in 2007, while 51.9% of Australia’s personal wealth is held in the form of housing, down from 52.4% in 2007. Superannuation assets now make up a slightly higher portion of personal wealth, rising from 19.6% to 21.8% since 2007. The report is drawn from over half a million in depth face-to-face interviews conducted over the last decade.

CORPORATES
ROY MORGAN LIMITED

Class warfare digs won’t work: Coalition

June 26, 2018roymorgansocial Leave a comment

Original article by Tom McIlroy
The Australian Financial Review – Page: 6 : 26-Jun-18

Prime Minister Malcolm Turnbull claims that Labor is attacking him because he is wealthy and successful. Labor will run commercials which contend that Turnbull will benefit from the federal government’s plans to reduce the company tax rate because of the large number of companies in which he has investments. Deputy Prime Minister Michael McCormack has accused Labor of engaging in class warfare, while Labor’ finance spokesman Jim Chalmers has accused Turnbull of siding with millionaires.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

ATO gets personal with 1500 richest

December 11, 2017roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 1 & 6 : 11-Dec-17

The Australian Taxation Office is taking a new approach when it comes to ensuring that the nation’s richest people are not avoiding their tax obligations. Whereas the ATO’s previous policy in this area was to rely on tax reviews and audits, its new strategy involves personal interviews with Australia’s richest people. The ATO’s current focus, which is led by Will Day, is on Australia’s top 320 private groups. Those within this group have either $A500 million or more in assets or at least $A350 million in turnover.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIAN NATIONAL AUDIT OFFICE

Australian households’ net wealth now over eight trillion dollars and growing

November 13, 2017roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 13-Nov-17

Roy Morgan Research’s newly released report "Superannuation and Wealth Management in Australia" shows that Australian households have increased their net wealth by 42.1%. over the last four years, from $5.703 trillion to $8.135 trillion. The report also shows that currently 53.1% of household net wealth is made up of equity in owner-occupied homes, up from 48.1% in 2013. Superannuation, Pensions/Annuities in total now account for 27.4% of the total, down from 28.6% in 2013. The other components of net wealth, which include bank accounts, managed funds (excluding superannuation) and direct investments, have fallen from 23.3% in 2013 to 19.5% in 2017. The report is unique because it looks at superannuation in the context of all other assets and debt that make up the true financial position of Australian households, rather than the usual single product or "silo" approach.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Forrest now third richest as iron ore rally delivers $5.3bn windfall

December 14, 2016roymorgansocial Leave a comment

Original article by Chris Kohler
The Australian – Page: 19 & 28 : 14-Dec-16

Bloomberg estimates that the net worth of Fortescue Metals Group founder Andrew Forrest has risen to $A7.34bn, making him the third-wealthiest individual in Australia. The 244 per cent rise in Fortescue’s share price during 2016 has boosted his wealth by $A5.34bn. The stock is currently trading at around $A6.43, compared with just $A1.45 in January. The iron ore price has risen by nearly 92 per cent in 2016, although BHP Billiton CEO Andrew Mackenzie is among those who believe that the recent rally is not sustainable.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BLOOMBERG LP, BHP BILLITON LIMITED – ASX BHP, VISY INDUSTRIES AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, RIO TINTO LIMITED – ASX RIO, MORGAN STANLEY AUSTRALIA LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BELL POTTER SECURITIES LIMITED, JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG

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WEALTH – AUSTRALIA