By 2017, there will be an estimated 402,000 millionaires in Australia, a 33% increase from 2012. The majority of these 100,000 new millionaires will earn their wealth from financial services.
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At the end of 2012 there were 302,000 millionaires (HNWIs) in Australia, collectively holding US$900 billion, or 15.5% of the total individual wealth in the country. The number of multimillionaires, defined as those with more than US$30 million, increased by 23% to an estimated 2,740 in 2012.
According to a new report from WealthInsight, 18.4% of millionaires and 15.7% of multimillionaires acquired their wealth from financial services. The next largest sector, basic materials, which includes agriculture, mining and metals, was the source of wealth for 14.3% of millionaires and 13.8% of multimillionaires. According to WealthInsight analyst, Oliver Williams, financial services is becoming the new bastion for Australia’s wealthy.
"Although Australia’s established multimillionaires, such as Gina Rinehart and Clive Palmer, still have large stakes in the mining sector, most of the country’s emerging millionaires are profiting from financial services."
However, according to Williams, there are perils ahead. "The move to financial services is likely to be fast and highly competitive. The sector already accounts for 10% of Australia’s national output and the nation has one of the world’s largest groups of investment funds. Sydney has turned itself into Australia’s financial centre and has therefore attracted more millionaires than any other city in Australia (81,400). But cities with undeveloped financial hubs are likely to fall way behind."
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By GlobalData
Australia has one of the healthiest distributions of wealth and the world’s second largest wealth per capita
Wealth per capita in Australia amounted close to US$344,000, well above the average of US$28,000 and the second highest in the world after Switzerland, which was US$498,000 for 2012. Collectively, Australian millionaires hold 15.5% of the country’s wealth, which is far below the global average of 29%.
According to Oliver Williams, this reflects a very equal distribution of wealth in Australia.
"Although we see billionaires earning stratospheric amounts, the reality is they are a tiny minority in what is a very equal economy".
