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Australians' private wealth 'hits record high'

Date Published : Thursday, July 17, 2008

Despite the domestic economy going through some turbulent times, new figures indicate that Australians' private stashes of cash and assets have never been healthier.

According to news.com.au, the Australian has published new estimates from Commonwealth Securities (Commsec) which put the average person's wealth - including property - at "just over $250,000", up $21,700 in the space of a year.

The company calculated its figures using the latest data from the Treasury and the Australian Bureau of Statistics, the news service added.

Commsec said much of the increase in private wealth is down to high house prices and interest rates, which have seen many Australians keep debts in check by paying them off quickly.

The company's equities economist Savanth Sebastian said: "Just how well Australians have done is highlighted by the fact that wealth has more than doubled over the past decade."

He added that over the past 12 months, debt levels have been subdued, rising by around 5.1 per cent - one of the lowest levels seen in half a decade.

These conditions have made it tougher for the Reserve Bank to ensure the economy does not overheat, Mr Sebastian noted, although its "job will get easier" over the coming months as increases in wealth levels are likely to undergo a correction.

"The share market has softened, while the dampening effect of consecutive rate hikes is likely to have seen the increase in wealth moderate to more sedate levels," he noted.

Commsec is a division of the Commonwealth Bank of Australia.

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