You should be feeling 20 per cent richer today, according to the federal Treasury department. “Australia’s new private sector wealth jumped by 19 per cent in the 2006 financial year-or 15 per cent taking inflation into account,” reports news.com.au. “At current prices, total wealth in the private sector was about $7,464 billion-or $366,100 per Australian… Real net wealth has risen by more than $150,000 since June 2001 alone, the data shows.”
Is it true? We’re new to Australia, so we couldn’t say. We sometimes feel twenty percent richer, but that could be because we’re paid in American dollars. All over Australia property prices have corrected, without crashing. The share market is on a four-year tear. People certainly dress, look, and sound 20 per cent richer. You get a certain bounce in your step when your net worth jumps by a fifth in twelve months.
But here is the problem as we see it, assets change in value, liabilities do not (not including massive inflation, which erodes the value of debts but at the cost of eroding purchasing power too.) So why don’t you let us know yourself. Do you feel richer? Are you better off now than you were two years ago? Let us know by leaving a comment.