Australian Household Debt Statistics

In Australia, household debt has historically been high compared to developed countries. As of 2021, the average Australian household debt was around AUD 282,000. One of the main reasons 117.10% of houses in Australia are available on an obligation is its high property prices.

It makes it difficult for people to purchase a home without incurring debt. This article will share Average Australian household debt statistics with relevant specifications.

What is Household Debt?

First of all, you need to understand household debt. It is the total debt a household has accumulated through borrowing. It includes mortgage debt, which is debt taken on to purchase a home. In addition, it provides debt from credit cards, personal loans, and car loans.

According to Trading economic indicators, Australia is the second highest country having 117% household debt to GDP in 2022. The majority of this debt is in the form of mortgage debt. The ratio of household debt to income stands at 88% in Australia. However, nearly two-thirds of households are in debt there. Around 37% of the people are knee-deep in debt and having problems paying them off. 

Australian Household Debt Statistics
Household Debt to Income Ratios

Here it is vital to note average household debt in Australia and average Australian mortgage debt are entirely different terms. “Average Australian mortgage debt” refers to the amount of debt that a person or household owes on their mortgage, on average. It can be calculated by dividing the total mortgage debt in a given population by the number of people or families in that population.

Average Household Debt in Australia

According to the latest figures from the Australian Bureau of Statistics (ABS), the Average household debt in Australia grew by 7.2 percent to 1,835.5 USD in 2021-22. In 2021-22, the average debt for a household was $261,492, while the average gross disposable income increased by 3.7% to $139,064. 

Australian Household Debt Statistics in 2022-2023
Australian Household Assets and Leverage

The top 20% of households in terms of income had 1.98 times the debt and 2.07 times the gross disposable income compared to the average debt in Australia. The bottom 20% of households in terms of revenue had 0.43 times the debt and 0.39 times the gross disposable income compared to the average for all families. 

The middle 20% of households had the most significant difference between their debt (1.26 times the standard) and their gross disposable income (1.11 times the average) compared to the average for all households.

Average Debt Per Person in Australia

Around 2,000 Australians revealed in a survey in 2021 that Millennials were the most indebted. According to this survey, the average personal debt was about 56.8 thousand Australian dollars. Approximately the national average personal debt in Australia is around 46,000 Australian dollars. 

Final Verdict

Here’s everything you need to know about Australian household debt statistics. No offense, Australia is one of the most developed countries in the world and has the second-highest GDP. The statistical data used in the figures and charts above has been sourced from Australian government websites, recent studies, and official surveys.

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