6554.0 - Household Wealth and Wealth Distribution, Australia, 2011–12  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 21/08/2013   
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APPENDIX 3 A NEW WEALTH FRAMEWORK


A NEW WEALTH FRAMEWORK

In 2013 the Organisation for Economic Co-operation and Development (OECD) released the first set of internationally agreed guidelines for producing micro statistics on household wealth, Guidelines for Micro Statistics on Household Wealth (OECD, 2013). These guidelines were produced by an ABS led OECD Expert Group on Micro Statistics on Household Income, Consumption and Wealth and fill an important gap in the existing international guidance on measuring the wealth dimension of people’ economic well-being. They address the common conceptual, definitional and practical problems that countries face in producing household wealth statistics, and help improve the comparability of the currently available country data. They are also needed to facilitate the integration of micro statistics on household wealth with those relating to the other dimensions of economic well-being, i.e. income and consumption.

The OECD Expert Group on Micro Statistics on Household Income, Consumption and Wealth undertook two complementary tasks at the same time. The first was the preparation of the wealth guidelines; the second was the preparation of the companion report, Framework for Statistics on the Distribution of Household Income, Consumption and Wealth (OECD, 2013), which presents the first internationally agreed comprehensive and integrated framework for the collection, analysis and dissemination of micro statistics on the different aspects of household economic well-being. The OECD Guidelines for Micro Statistics on Household Wealth are fully consistent with the Framework for Statistics on the Distribution of Household Income, Consumption and Wealth.

The OECD wealth guidelines complement the broad macro economy perspective articulated in the System of National Accounts (SNA). Many of the concepts in the OECD wealth guidelines and the SNA are the same, however some differences exist. The guidelines for micro data support the distributional analysis of economic well-being, and therefore include consumer durables as assets yielding services to their own households. These assets are particularly important in the analysis of the wealth of poorer households and for distributional information. On the other hand, the micro guidelines do not include some of the concepts included in the macro data that are of less relevance from a household perspective. The relationship between the OECD wealth guidelines and the SNA is described in detail in the OECD wealth guidelines, so that data prepared under the two frameworks can be analysed together in a meaningful way.

In this publication a change in the asset classification has been implemented to improve alignment with the new OECD wealth guidelines. The change impacts the presentation of net unincorporated business, this asset category is now classified as a financial asset, where it was previously classified as a non-financial asset. In previous publications the value of silent partnerships was included in net unincorporated businesses. With the adoption of the new standards in this publication, silent partnerships is now classified separately from unincorporated businesses and is included in shares and other equity as a financial asset.

Overall, net worth is not impacted by this classification change. Table A1 presents the mean values of assets and liabilities on the classification used in previous publications. it can be seen from this table that unincorporated businesses including silent partnerships has a mean value of $24,542 in 2011-12. Under the new classification this amount is now included as a financial asset, with $20,463 shown against unincorporated business and $4,079 against silent partnerships included in the value of shares. Table A1 can be used to compare the mean values of assets and liabilities in 2011-12 to their value in previous publications.

Table A2 presents the mean values of assets and liabilities on the new classification basis for 2003-04, 2005-06, 2009-10 and 2011-12. This table can be used to compare assets and liabilities over time under the new classification.

A1. Household assets and liabilities, Former wealth classification

2011-12
$

MEAN VALUES

ASSETS
Financial assets
Value of accounts held with financial institutions
36 956
Value of shares (excl. own incorporated business)
18 160
Trusts
Value of public unit trusts
3 072
Value of private trusts
23 851
Total trusts
26 923
Value of own incorporated business (net of liabilities)
27 595
Superannuation
Balance of accounts with government superannuation funds
34 913
Balance of accounts with non-government superannuation funds
97 406
Total superannuation
132 318
Total financial assets(a)
247 686
Non-financial assets
Property assets
Value of owner occupied dwelling
369 875
Value of other property
129 123
Total property assets
498 998
Value of own unincorporated business (net of liabilities) (incl. silent partnerships)
24 885
Value of contents of dwelling
62 588
Value of vehicles
21 192
Value of assets nec
2 882
Total non-financial assets
610 545
Total assets
858 230
LIABILITIES
Property loans
Principal outstanding on loans for owner occupied dwelling
74 741
Principal outstanding on other property loans
42 122
Total property loans
116 862
Other liabilities
Debt outstanding on study loans
2 423
Amount owing on credit cards
2 726
Principal outstanding on loans for vehicle purchases (excl. business loans)
2 734
Principal outstanding on investment loans (excl. business and rental property loans)
4 228
Principal outstanding on loans for other purposes (excl. business and investment loans)
1 118
Total liabilities
130 092
NET WORTH OF HOUSEHOLD
728 139

(a) Includes the value of other financial investments, debentures and bonds, children's assets, loans to persons not in the same household, and offset accounts

A2. Household assets and liabilities(a), New wealth classification

2003-04
2005-06
2009-10
2011-12
$
$
$
$

MEAN VALUES

ASSETS
Financial assets
Value of accounts held with financial institutions(b)
21 115
24 811
32 908
36 956
Value of shares (excl. own incorporated business)
18 221
22 739
22 314
18 160
Trusts
Value of public unit trusts
-
-
3 734
3 072
Value of private trusts
-
-
17 832
23 851
Total trusts
9 158
10 032
21 565
26 923
Value of own incorporated business (net of liabilities)
22 836
45 238
39 499
27 595
Value of own unincorporated business (net of liabilities)
15 571
14 339
21 547
20 622
Superannuation
Balance of accounts with government superannuation funds
16 994
19 490
26 781
34 913
Balance of accounts with non-government superannuation funds
46 467
65 029
89 101
97 406
Total superannuation
63 462
84 519
115 882
132 318
Total financial assets(c)
152 072
207 382
256 260
272 571
Non-financial assets
Property assets
Value of owner occupied dwelling
249 032
286 056
364 895
369 875
Value of other property
70 799
90 663
136 364
129 123
Total property assets
319 830
376 719
501 260
498 998
Value of contents of dwelling
47 353
50 936
60 758
62 588
Value of vehicles
17 220
19 406
20 454
21 192
Value of assets nec
586
886
645
2 882
Total non-financial assets
384 988
447 946
583 116
585 660
Total assets
537 060
655 328
839 376
858 230
LIABILITIES
Property loans
Principal outstanding on loans for owner occupied dwelling
40 013
49 932
68 354
74 741
Principal outstanding on other property loans
19 862
29 188
36 635
42 122
Total property loans
59 875
79 120
104 989
116 863
Other liabilities
Debt outstanding on study loans
1 205
1 472
2 004
2 423
Amount owing on credit cards
1 863
2 164
2 640
2 726
Principal outstanding on loans for vehicle purchases (excl. business loans)
2 679
2 842
2 282
2 734
Principal outstanding on investment loans (excl. business and rental property loans)
2 363
5 124
6 880
4 228
Principal outstanding on loans for other purposes (excl. business and investment loans)
1 450
1 747
1 021
1 118
Total liabilities
69 434
92 470
119 816
130 092
NET WORTH OF HOUSEHOLD
467 626
562 859
719 561
728 139

- nil or rounded to zero (including null cells)
(a) Wealth values are not adjusted for inflation
(b) Prior to 2011-12, this estimate may have included some of the value of offset accounts
(c) Includes the value of other financial investments, debentures and bonds, children's assets, loans to persons not in the same household, offset accounts, and silent partnerships. The value of offset accounts was collected separately from other financial accounts for the first time in 2011-12



References

United Nations, International Monetary Fund, Organisation for Economic Co-operation and Development, World Bank and Commission of the European Communities, Brussels/Luxembourg, New York, Paris, Washington D.C., 1993 and 2008.

System of National Accounts 1993

System of National Accounts 2008

OECD (2013), OECD Guidelines for Micro Statistics on Household Wealth, OECD Publishing.

http://dx.doi.org/10.1787/9789264194878-en