The 1% Club: What It Takes To Be Rich In The Lucky Country
The definition of a high net worth individual in Australia has shifted
4 min
The pathway to growing wealth in Australia is changing, with new research revealing that the amount of money you need behind you to be in the top one percent of wealthiest people in Australia has doubled over the past two years.
While many households across the country are battling the rising cost of living pressures, it has been revealed that 2.2 million Australians have amassed at least $8 million in money and assets, up from $4 million in 2021. This status places them in the list of the nation’s High Net Wealth Individuals.
The data, revealed in this year’s Knight Frank’s Wealth Report, gives anyone interested in wealth fascinating insights into just how much money it takes to reach the one percent threshold across the world. The report reveals that Australia now ranks as third for the money required to be in the top one percent, up from seventh in 2021,
sitting behind Monaco in top place and then Switzerland.
In Monaco, it takes $18.1 million to be considered rich, but bear in mind that the nation has long been considered a tax haven, with residents avoiding income and capital gains taxes.
Finance experts are adamant that the fundamentals that help you get rich haven’t changed — the wealthy purchase property, pay down their debt, stick to a budget and utilise the tax offsets that exist within the nation’s superannuation system to build their wealth.
Sounds simple enough, but amid a cost of living crisis, it’s not quite so straightforward.
The power of money
Rachael Evans entered the realm of HNWIs a few years ago, admitting that she takes a structured approach to building and managing her wealth.
Money isn’t just a functional, tangible thing. There’s energy associated with it, she says.
“The first thing that you have to get your head around is that money wants structure, so if you don’t have rules that govern your money, it will not stay with you, no matter how much you earn,” she says.
The CEO of four-day work week consultancy, 4 Days 4 All, and business coach always pays herself first as the owner of her business, and then allocates what’s left over back to the business.
“Most business owners do it the other way around, which leaves owners with a very small portion left over, if anything,” Evans says.
Evans and her husband aim to be debt free by the time they reach 55 years of age, and have reverse engineered their finances based on that to allocate what’s needed to pay off her investment properties.
She has a team of experts
< to help her achieve that goal. “What’s changed over the past five years is the value that I place on the people we hire to advise us, such
as our property adviser, financial adviser and our accountant. There’s far too many financial advisers out there advising others on how to handle their money based on theory because they don’t actually have any skin in the game.”
Investing in herself is also critical, so she sets aside up to 10 percent
of her annual revenue in business- related coaching for herself and her team.
Millionaire status
Melbourne businessman Ryan Watson has reached the HNW status. The founder of financial advice firm Tribeca Financial admits that it dawned on him that he had reached a financial milestone that he considered to place him among other wealthy Australians about four years ago. He’s since stepped down to working four days a week and likes to spend his money on buying experiences, like travelling with family when he can.
The business has nearly 1,000 clients and has an annual turnover in excess of $5 million. Being in a position to build the financial literacy of his clients spurs him on.
“I have been able to build my personal wealth from receiving a small inheritance in 2002 to today where I’m now worth 8 figures,” he says.
A key plank in wealth-building has been his focus on diversifying his investments. He’s also not risk averse, buying shares in lithium companies nine years ago.
“It’s certainly not been an overnight success, the shares have gone up and down over the years, but with the advent of electric cars, they make a lot of sense at the moment,” Watson says.
The forced discipline of structuring his finances so that he’s always paying something off also appeals to him. Right now, he and his wife pour a minimum off 33 per cent of their income into paying off their principal residence.
“The responsibility and commitment of paying back debt works well for us,” he says.
Rich getting richer
The mega-rich are also getting richer. People with a net worth of more than $43.8 million is a category of wealth expected to grow by 40.9 percent over the next five years from 17,456 in 2022 to 24,589 in 2027. That’s almost 3,000 additional UHNWIs than the 31.1 percent growth over the past five years.
A large contributor to the top one percent wealth doubling in Australia over the past two years has been prime residential property performance recording an upward trajectory, resilient despite the rising cost of finance, with half of this cohort tending to be cash buyers.
“The level of wealth required to reach the wealthiest one percent varies extensively, depending on where you live in the world, but it has risen across the board … reflecting the growth in wealth portfolios over the past two years, despite the dip in 2022,” Knight Frank’s head of residential research Australia, Michelle Ciesielski says.
“We can’t underestimate how much the pandemic brought forward decision making, rebalancing of portfolios and re- evaluating how much time is spent in Australia going forward, given many spent longer periods of time grounded at home than they had over the past decade,” she says.
“On average, the UHNWI population in Australia owns 2.9 homes, or equivalent to 36 per cent of their total wealth is in primary and secondary homes.
“For their investible wealth, 94 percent of their portfolios tend to be held in Australia, 34 percent is in some form of commercial property ownership, while 21 per cent is in equities.”
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Odd Culture Group brings a new kind of after-dark energy to the CBD, where daiquiris, disco and design collide beneath the city streets.
Odd Culture Group brings a new kind of after-dark energy to the CBD, where daiquiris, disco and design collide beneath the city streets.
2 minSydney’s nightlife has long flirted with reinvention, but its latest arrival suggests something more deliberate is taking shape beneath the surface.
Razz Room, the new underground bar and disco from Odd Culture Group, has opened in the CBD, marking the group’s first step into the city centre.
Tucked below street level on York Street, the venue blends cocktail culture with a shifting, late-night rhythm that moves from after-work drinks to full dancefloor immersion.
The space itself is designed to evolve over the course of an evening. An upper bar offers a more intimate setting, suited to early drinks and conversation, while a sunken dancefloor anchors the venue’s later hours, with a rotating program of DJs and live performances.
“Razz Room will really change shape throughout a single evening,” says Odd Culture Group CEO Rebecca Lines.
“Earlier, it’s geared towards post-work drinks with a happy hour, substantial food offering, and music at a level where you can still talk.”
As the night progresses, that tone shifts.
“As the evening progresses at Razz Room, you can expect the music to get a little louder and the focus will shift to live performance with recurring residencies and DJs that flow from disco to house, funk, and jazz,” Rebecca says.
The concept draws heavily on New York’s underground club scene before disco became mainstream, referencing venues such as The Mudd Club and Paradise Garage. But the intention is not nostalgia.
“The space told us what it wanted to be,” Lines explains. “Disco started as a counter culture… Razz Room is no nostalgia project, it’s a reimagining of the next era of the discotheque.”
Design, too, plays its part in shaping the experience. The upper level is warm and textural, with timber finishes and burnt-orange tones, while the sunken floor shifts into a more theatrical mood, combining Art Deco references with a raw, industrial edge.
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