Parental Support Behind Australia’s Millennials Collection of Wealth

A recent report by the Australian Council of Social Service and the University of New South Wales reveals that Australia’s wealthiest millennials owe their financial status more to parental assistance than to high-paying jobs. The study underscores the significant role of parental support in shaping the wealth distribution among young Australians.

Millennials under 35 who have been able to invest in property or purchase a home with parental assistance are more likely to rank in the top 10 percent of their age group in terms of wealth. While they may not necessarily be the highest earners, they hold almost half of the total wealth among their peers. Many affluent younger households have received financial support from their parents to accumulate wealth. These findings challenge the notion that higher incomes alone drive wealth accumulation among millennials.

Analyzing households with residents under 35, the report reveals that investments in property and shares are key contributors to wealth accumulation. The wealthiest 10 percent of young Australians boast an average net worth of $2.014 million, a stark contrast to the $80,000 net worth of the lowest 60 percent.

Breaking down the components of wealth, equity in primary residences, investment properties, and financial portfolios significantly contribute to the wealth of affluent millennials. Surging house and share prices, particularly since the onset of the pandemic, have exacerbated wealth inequality, leaving those with lower incomes and fewer assets behind.

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