Source: The Mercury, 24 January, 1995


Every Australian
is wealthier!

by
Kim Sweetman in Canberra

Australians have emerged 
from the recession wealthier 
than they were when it began, 
according to figures from the 
Federal Treasury and the Aus-
tralian Bureau of Statistics.

Each person is now worth an 
average of $94,100 in terms 
of private assets, a report 
released yesterday by Treasury 
said.

The total value of privately 
owned property, including 
private sector companies was 
$1,679.4 billion in the year 
to June 30, 1994, it said. 
That represented a rise in the 
average value of personal 
assets of 11.6 per cent.

If every Australian lost 
everything they owned it would 
cost $85,800 each, or a total 
of $1,530,8 billion, to replace 
the assets.

The report said people were 
not increasing their wealth 
at the same high rates they 
were in the 1980s but, unlike 
other economic cycles, growth 
was recovering well from the 
recession.

"The recovery has occurred 
without a strong increase in 
inflation and therefore 
growth in real wealth has re-
covered strongly", the report 
said.

Housing was the most valuable 
asset, accounting for 59 per 
cent of private holdings.

This was followed by business 
capital (28 per cent), Govern-
ment securities (6 per cent), 
consumer durables (6 per cent) 
and the money base, which was 
worth one per cent of all pri-
vate wealth.

Strong investment in business 
and housing underpinned the 
growth in assets, it said. 
Investment in business capital 
accounted for 6 per cent of 
the 11.6 per cent increase in 
net private sector wealth in 
line with growth in stock mark-
et prices.

Growth in housing accounted 
for 5.6 per cent of the rise.

Continued growth in housing 
stock was bolstered by modest 
growth in established house 
prices.

The real price of housing 
assets rose as the price of 
established houses increased 
faster than the price of new 
dwelling investment.


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