Australian Household Debt

Household debt in Australia will have risen in 2020, especially following the COVID-19 situation.

However, in the last quarter of 2019, Household Debt in Australia decreased to 119.50 percent of GDP.

The chart below shows Household Debt as almost 200% of Annual Household Disposable Income.  (the blue line in this chart)

Household Wealth 1999-2019

However, Household Assets should really be look at when looking at Household Debt.

Why? Assume you borrow a million dollars and buy a million dollars in shares or property. Your debt has suddenly risen by $1 million. But is it real debt, if you could sell those shares immediately and pay it back?


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Josh Frydenberg, the Treasurer of Australia, speaking on Household debt, stated that “household assets are about four to five times as to what household debt is”.

The ABS has quoted: “Household wealth per capita increased $12,809 to $442,705, in the December quarter 2019.”

Therefore the NET household Assets/Debt must be in the region of $300,000 in credit per capita.

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