The 1% Club: What It Takes To Be Rich In The Lucky Country
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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

By Nina Hendy
Wed, Nov 1, 2023 10:32amGrey Clock 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.”


This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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Anger Does a Lot More Damage to Your Body Than You Realise

We all get mad now and then. But too much anger can cause problems.

Fri, May 24, 2024 3 min

Anger is bad for your health in more ways than you think.

Getting angry doesn’t just hurt our mental health , it’s also damaging to our hearts, brains and gastrointestinal systems, according to doctors and recent research. Of course, it’s a normal emotion that everyone feels—few of us stay serene when a driver cuts us off or a boss makes us stay late. But getting mad too often or for too long can cause problems.

There are ways to keep your anger from doing too much damage. Techniques like meditation can help, as can learning to express your anger in healthier ways.

One recent study looked at anger’s effects on the heart. It found that anger can raise the risk of heart attacks because it impairs the functioning of blood vessels, according to a May study in the Journal of the American Heart Association .

Researchers examined the impact of three different emotions on the heart: anger, anxiety and sadness. One participant group did a task that made them angry, another did a task that made them anxious, while a third did an exercise designed to induce sadness.

The scientists then tested the functioning of the blood vessels in each participant, using a blood pressure cuff to squeeze and release the blood flow in the arm. Those in the angry group had worse blood flow than those in the others; their blood vessels didn’t dilate as much.

“We speculate over time if you’re getting these chronic insults to your arteries because you get angry a lot, that will leave you at risk for having heart disease ,” says Dr. Daichi Shimbo, a professor of medicine at Columbia University and lead author of the study.

Your gastrointestinal system

Doctors are also gaining a better understanding of how anger affects your GI system.

When someone becomes angry, the body produces numerous proteins and hormones that increase inflammation in the body. Chronic inflammation can raise your risk of many diseases.

The body’s sympathetic nervous system—or “fight or flight” system—is also activated, which shunts blood away from the gut to major muscles, says Stephen Lupe, director of behavioural medicine at the Cleveland Clinic’s department of gastroenterology, hepatology and nutrition. This slows down movement in the GI tract, which can lead to problems like constipation.

In addition, the space in between cells in the lining of the intestines opens up, which allows more food and waste to go in those gaps, creating more inflammation that can fuel symptoms such as stomach pain, bloating or constipation.

Your brain

Anger can harm our cognitive functioning, says Joyce Tam, an assistant professor of psychiatry and behavioral sciences at Rush University Medical Center in Chicago. It involves the nerve cells in the prefrontal cortex, the front area of our brain that can affect attention, cognitive control and our ability to regulate emotions.

Anger can trigger the body to release stress hormones into the bloodstream. High levels of stress hormones can damage nerve cells in the brain’s prefrontal cortex and the hippocampus, says Tam.

Damage in the prefrontal cortex can affect decision-making, attention and executive function, she adds.

The hippocampus, meanwhile, is the main part of the brain used in memory. So when neurons are damaged, that can disrupt the ability to learn and retain information, says Tam.

What you can do about it

First, figure out if you’re angry too much or too often. There’s no hard and fast rule. But you may have cause for concern if you’re angry for more days than not, or for large portions of the day, says Antonia Seligowski, an assistant professor of psychiatry at Massachusetts General Hospital and Harvard Medical School, who studies the brain-heart connection.

Getting mad briefly is different than experiencing chronic anger, she says.

“If you have an angry conversation every now and again or you get upset every now and again, that’s within the normal human experience,” she says. “When a negative emotion is prolonged, when you’re really having a lot more of it and maybe more intensely, that’s where it’s bad for your health.”

Try mental-health exercises. Her group is looking at whether mental-health treatments, like certain types of talk therapy or breathing exercises, may also be able to improve some of the physical problems caused by anger.

Other doctors recommend anger-management strategies. Hypnosis, meditation and mindfulness can help, says the Cleveland Clinic’s Lupe. So too can changing the way you respond to anger.

Slow down your reactions. Try to notice how you feel and slow down your response, and then learn to express it. You also want to make sure you’re not suppressing the feeling, as that can backfire and exacerbate the emotion.

Instead of yelling at a family member when you’re angry or slamming something down, say, “I am angry because X, Y and Z, and therefore I don’t feel like eating with you or I need a hug or support,” suggests Lupe.

“Slow the process down,” he says.


This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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