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Australia's median wealth falls nearly 7% since 2020, report finds

Created at 2 Jul · 3:10 PM1 source↑ Market-relevant
IN SHORT

New research indicates that while Australia's average wealth has increased, median wealth has declined by nearly 7% between 2020 and 2025, suggesting a growing wealth divide. The richest individuals are accumulating a larger share of national wealth.

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Key Numbers

7%median wealth contraction in Australia (2020-2025)
19%average wealth increase in Australia (2020-2025)
2025year of record millionaire increase globally
1 millionnew millionaires created worldwide in 2025
18countries with declining median wealth
29countries analyzed in UBS report
$US211,000Australia's median net wealth per adult
A$306,000Australia's median net wealth per adult
5.5 trillionwealth to be passed from boomers to children
5 millionestate value threshold for potential inheritance tax
10 millionestate value threshold for potential inheritance tax

Who's Involved

UBS
Swiss bank that published the global wealth report
Saul Eslake
Independent economist commenting on Australian wealth inequality

↳ Why This Matters

The widening gap between average and median wealth in Australia highlights increasing economic disparity, which can have broader implications for social stability and economic growth. The findings suggest that while the overall economic picture may appear positive, a significant portion of the population is not benefiting equally.

Key facts

  • Australia's median wealth has decreased by nearly 7% between 2020 and 2025.
  • Average personal net wealth in Australia increased by 19% during the same period.
  • The richest individuals are accumulating a larger share of national wealth.
  • Globally, nearly one million new millionaires were created in 2025, a record increase.
  • Median wealth declined in 18 out of 29 countries analyzed, including Germany, the US, and the UK.
  • Australia ranks third globally in median net wealth, with nearly $US211,000 per adult.

Australia's median wealth has declined by nearly 7% since 2020, despite average wealth increasing by 19% over the same period, according to a new global wealth report from UBS. This divergence indicates that the wealthiest individuals are capturing a disproportionately larger share of the nation's wealth.

The report, which analyzed data up to 2025, found that while nearly a million new millionaires were created globally in 2025, the gains were unevenly distributed. In Australia, this trend is pronounced, with median wealth contracting while average wealth grew, suggesting a widening gap between the rich and the broader population.

Independent economist Saul Eslake noted that Australia has experienced significant increases in wealth inequality, primarily driven by housing. Despite this, Australia maintains the third-highest median net wealth globally, at nearly $US211,000 (A$306,000) per adult, behind Luxembourg and Belgium. In contrast, the US, despite having high average wealth, ranked 28th out of 30 countries for median wealth.

Eslake suggested that widening inequality can negatively impact economic growth, citing arguments that wealthy individuals save more and that rising inequality can fuel populist policies detrimental to the economy. He also pointed out that Australia's tax system does little to mitigate wealth inequality, advocating for measures such as an inheritance tax on estates above $5 million or $10 million, with exemptions for surviving spouses.

Frequently asked questions

Average wealth is the total wealth divided by the number of people, which can be skewed by a few very wealthy individuals. Median wealth represents the midpoint, where half the population has more and half has less, offering a better insight into typical wealth levels.

According to economist Saul Eslake, housing is the biggest driver of wealth inequality in Australia. Compulsory superannuation also plays a role.

Australia ranks third globally in median net wealth, with nearly $US211,000 (A$306,000) per adult, behind Luxembourg and Belgium.

Economist Saul Eslake is among those calling for an inheritance tax on estates valued at $5 million or $10 million or more, with exemptions for surviving spouses or partners.

What Happens Next

01Further analysis on the impact of wealth inequality on economic growth is expected.
02Discussions regarding potential policy interventions, such as inheritance taxes, may continue.

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Cadence

How It Developed

Global wealth report from UBS shows nearly a million new millionaires worldwide in 2025.
Report highlights that while average wealth rose, median wealth declined in most markets.
In Australia, average personal net wealth climbed 19% between 2020 and 2025.
Median wealth of Australian adults contracted by nearly 7% over the same period.
Economist Saul Eslake notes Australia has seen significant increases in wealth inequality.
Eslake suggests housing and compulsory superannuation contribute to wealth distribution.
Australia ranks third globally in median net wealth, behind Luxembourg and Belgium.
Eslake argues widening inequality can detract from economic growth and calls for inheritance tax.

Sources

T1
Australia’s median wealth falls almost 7% since 2020 despite the rich getting richer, report saysThe Guardian

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