Combined Wealth of Australia’s 200 Richest Rises by 11%: Tech and Property Sectors Lead the Way

Australia’s richest individuals continue to amass wealth, with the tech and property sectors driving the growth of top earners, as highlighted in this year’s Australian Financial Review’s rich list.

For the fifth consecutive year, Gina Rinehart has maintained her position at the top of the list. The combined wealth of Australia’s 200 richest people rose by 11% to $624.9 billion despite the country grappling with high inflation and a cost-of-living crisis. Rinehart’s fortune surpassed the $40 billion mark for the first time, largely due to iron ore prices. However, the divorce of Andrew Forrest and Nicola Forrest led to a split in their wealth, causing a drop in their ranking on the list, referred to as the “ore-oligarchs” by the AFR.

While half of the top ten fortunes are derived from mining, the tech and property sectors are increasingly prominent. Harry Triguboff, at 91, has significantly expanded his build-to-rent portfolio, now branded as Meriton Build for Rent, securing the second spot with an estimated $26.5 billion, an 11% increase. Property developers Tim Gurner, Sam Tarascio, and Maha Sinnathamby also feature prominently on the list. Additionally, there are now 28 technologists among the ranks, including Mike Cannon-Brookes, Scott Farquhar, and Canva’s Melanie Perkins and Cliff Obrecht.

Economics professor Richard Holden from the University of NSW observed that the list reflects a diversification in wealth generation. Holden noted that Australia’s wealth landscape is evolving beyond traditional industries like mining and construction. Notable entries include Anthony Eisen and Nick Molnar, founders of Afterpay, and Sam Hupert, co-founder of a medical imaging software company, highlighting the growing influence of technology. The rise of cryptocurrency has also contributed to the wealth surge, with Tim Heath, an online gaming mogul, and Russell Wilson, owner of a majority stake in CoinSpot, both making the list.

Holden emphasized that the common thread among Australia’s wealthiest is entrepreneurship or inheritance. Achieving billionaire status typically requires founding a company or inheriting wealth rather than accumulating income through traditional labor. He pointed out that globally, only a few individuals, like Tiger Woods and JK Rowling, have become billionaires purely from their professional endeavors. Holden expressed a broader perspective, suggesting that attention should shift from the extreme wealth of a few to improving the economic conditions of those at the lower end of the spectrum.