“For most Australians, income is the most important resource they have to meet their living costs. However, reserves of wealth can be drawn upon to maintain living standards in periods of reduced income or substantial unexpected expenses. Considering income and wealth together helps to better understand the economic well-being or vulnerability of households.” ABS 6523.0 – Household Income and Wealth, Australia

Wealth is defined as assets minus liabilities.

Assets may be real or financial.

Real assets are tangible, such as real estate, cars, jewellery, furniture, while financial assets are cash, shares or a managed fund.

Liabilities are debts owed, examples would be a mortgage on a property, a credit card debt or a margin loan.


Wealth provides security and freedom to enjoy the lifestyle you desire.

Creating wealth provides you with the means to have a comfortable retirement, to travel, to have the best health care or to help your family. It provides you with options.

Income and wealth in Australia are unevenly distributed. The fact that income is uneven is not necessarily a bad thing*, the ability to increase your income or wealth in return for hard work, risk-taking and investment are strong incentives that drive growth and development in the economy. (remember the motivating force of self interest)

(*Value judgments about income and wealth distribution are in the realm of normative economics and not within the scope of this discussion.)

Approximately 60% of total private wealth in Australia is owned by only 20% of the population.


Most wealth in Australia is not inherited but created by individuals who not only worked for their money but put their money to work for them, many of them penniless migrants who came to Australia and saw opportunity! https://www.forbes.com/australia-billionaires/list

If you are fortunate enough to be able to be able to divert some of your income to savings and to invest and increase your net wealth for the future, the opportunities exist in this country.

Once you have the capacity and knowledge to create wealth, the rule of law and government policy provide the framework and security to do so.

It is up to you!