Thursday 30th June 2016 - 1:49 pm

Our wealth: the $13.2 billion hit

by Alan Thornhill

Australians have suffered their first fall in household net wealth since the September quarter of 2011.

 

This is shown in figures that the Australian Bureau of Statistics published today.

 

The Bureau said that during the quarter, household net worth fell by $13.2b.

 

“During the quarter, household net worth decreased by $13.2b, its first decrease since September quarter 2011,” the Bureau said.

 

It said the fall was  driven by “holding gains (real and neutral)  -of -$44.1b.”

 

Holding losses on financial assets, like shares, in the quarter were $46.5b.

 

These were driven by valuation decreases in the listed equities market ($17.8b) and insurance technical reserves (driven by superannuation assets) of $37.3b.

 

Households recorded holding losses of $2.2b on land and dwellings during March quarter.

 

This was their second consecutive quarterly loss, following holding losses of $8.0b in December quarter.

 

The Bureau put our household net worth at $8,640.6b at the end of the March quarter.

 

It said this was made  up mainly of $5,904.7b of land and dwelling assets and $4,305.2b of financial assets.

 

But they were set against $2,234.9b of household liabilities.

 

The Bureau  also said transactions in net worth were driven by net capital formation of $11.9b, of which net acquisitions of land and dwellings were $10.9b while other non-financial assets amounted to $1.0b.

 

It said net financial transactions were $11.3b, of which net acquisition of financial assets were $38.5b and net incurrence of liabilities were $27.2b.

 

The major contributors to financial assets transactions were net equity in reserves of pension funds ($17.7b) and deposits ($12.8b).

 

Households incurred liabilities predominately through long term loan borrowings ($26.3b).

The Bureau said holding losses on financial assets in the quarter were $46.5b.

 

These were driven by valuation decreases in the listed equities market ($17.8b) and insurance technical reserves (driven by superannuation assets) of $37.3b.

 

Households recorded holding losses of $2.2b on land and dwellings during March quarter 2016, their second consecutive quarterly loss, following holding losses of $8.0b in December quarter 2015.


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