Household wealth increased for the third straight quarter

Media Release
Released
28/09/2023

Household wealth rose for the third straight quarter, up 2.6 per cent ($379 billion) in the June quarter 2023, according to figures released today by the Australian Bureau of Statistics (ABS).

Total household wealth was $15.1 trillion in the June quarter, which was 3.9 per cent ($568 billion) higher than a year ago. Residential land and dwellings drove the increase in household wealth, contributing 2.1 percentage points to the overall quarterly growth.

Dr Mish Tan, ABS head of finance statistics, said: “Household wealth has grown alongside increasing house prices this year. Population growth has supported demand for housing while the supply of new and established dwellings to the market remained constrained.”

Superannuation assets also contributed 0.3 percentage points to the June quarter’s household wealth growth. Superannuation balances were supported by strong performance in overseas share markets, elevated employer contributions in a strong labour market and an expected seasonal increase in post-tax contributions.

Despite an improvement in the household balance sheet, there were signs that household budgets were under strain in the June quarter. Household deposit accounts shrank by $6.0 billion, the first quarterly decline since June quarter 2007.

This was driven by an $18.0 billion decrease in transferable deposits, partly offset by a $12.0 billion increase in non-transferable deposit accounts such as savings and fixed-term deposits. The largest driver of the fall in household deposits was from unincorporated businesses.    

“This was the first fall in deposit balances since the Global Financial Crisis and indicates that the household sector was tapping into cash reserves amid rising cost pressures,” Dr Tan said.

“This was consistent with a falling household saving ratio which is at its lowest level since June quarter 2008. Higher interest rates and income tax payable, paired with high consumer inflation, has reduced households’ savings buffers.”

Total demand for credit of $38.1 billion was the weakest since June quarter 2005, driven by households ($37.7 billion) and state and local general government ($10.2 billion). Private non-financial businesses’ demand for credit was $851 million, while the Commonwealth government repaid $15.7 billion of its debt.

The Commonwealth government’s cash balance improved due to record receipts from income and corporate taxes, which reduced their need to raise new debt. $11.8 billion of Treasury bonds and $4.1 billion of short-term debt securities matured during the quarter as the Commonwealth government repaid creditors.

Media notes

  • When reporting ABS data you must attribute the Australian Bureau of Statistics (or the ABS) as the source.
  • For media requests and interviews, contact the ABS Media Team via media@abs.gov.au (8.30am-5pm Mon-Fri).
  • Subscribe to our media release notification service to get notified of ABS media releases or publications upon their release.
  • Transferable deposits are readily accessible transaction accounts that households use for everyday expenses. This includes offset accounts which are used by people who have mortgages to reduce their net loan principal on which interest is charged.
  • The household sector also includes unincorporated businesses and non-profit institutions serving households (such as charities and religious organisations).
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