Top end of town hit by properties price rise
Yet-to-be-released research by the National Centre for Social and Economic Modelling at the University of Canberra shows that the most affluent 10% of Australians had an average gross household income of about $175,000 in 2005-06, up from the inflation-adjusted income of $130,000 in 1995-96.
But this was not always reflected in their home-ownership fortunes. The level of outright home ownership among the most affluent fell in that period, from 35% to 28%, while the proportion who were still paying off mortgages grew from 43% to 50%.
NATSEM director Ann Harding will present the results at an international conference on income and wealth in August in Slovenia. Professor Harding said the difficulties of owning a home or flats were being felt right across the country. “It was interesting to see that the top end of town weren’t immune from that. Like other Australians they’ve shifted from being outright home owners to still having to wrestle with a mortgage,” she said.
“Right at the top of the income spectrum they haven’t been immune from the effects of rapid house price increases and the consequent decline in outright home ownership.”
The research comes just weeks after the Federal Government’s first budget contained cuts to so-called middle-class welfare. Families that earn more than $150,000 will no longer be eligible for the baby bonus or the Family Tax Benefit B, and that is also the income at which the Medicare levy surcharge will now apply for families. The budget also targeted luxury cars.
The research also shows that among the most affluent, three-quarters did not have dependent children, making them either empty nesters or a couple that has never had children.
Professor Harding said incomes among the most affluent appeared to be growing faster than for others.
