COVID-19 sees Aussies reach record-high wealth

“The September quarter estimate surpassed the previous high of $11,248 billion recorded in December quarter 2019, prior to the COVID-19 pandemic,” said the head of finance and wealth at the ABS, Amanda Seneviratne.

Three main contributors led to the growth in household wealth, with residential assets topping the board following a 1.2 per cent increase in the quarter. Deposits came next with a 5.4 per cent growth, while superannuation balances followed closely following a 1.1 per cent expansion.

Average household wealth increased 1.6 per cent (up $6,850) to $441,649 per person in the September quarter, similar to the growth of 1.5 per cent recorded in the June quarter.

Additionally, the ABS noted, a 0.1 per cent increase in the population was the reason total wealth grew marginally more than average wealth.  

“The September quarter 2020 financial accounts reflected improvements in the Australian and global financial markets, as well as a partial recovery of the domestic economy in response to government and RBA policies, and easing social restrictions across most of Australia,” Ms Seneviratne said.

Residential assets rose $86.8 billion, recouping the losses experienced in the June quarter. Holding gains of $73.6 billion on residential assets reflected a rebound in property prices as social distancing measures, such as restrictions on auctions and open house inspections, eased and economic conditions began to improve.

The ABS data also revealed that household deposits increased a record $63.7 billion as households continued to save at elevated levels during the September quarter.

According to the bureau, continuing government income support packages such as JobKeeper, economic support payments and early access to superannuation were the key drivers of the increase in deposits.