Australia is seeing an increase in the number and wealth of its billionaires, outpacing both inflation rates and average worker pay rises over the past year, according to the ninth UBS Billionaire Ambitions report. For the first time, inheritance has surpassed entrepreneurship as the primary source of new billionaire wealth in the country.
In 2023, Australia saw the addition of five new billionaires, bringing the total count to 41, up from 37 the previous year. This elite group expanded their collective wealth by 10.7% to US$173.5 billion (A$261.27 billion), a growth significantly higher than the 4.9% inflation rate recorded by the Australian Bureau of Statistics in the 12 months leading to October. During the same period, the Wage Price Index rose by only 4%.
Despite this trend towards inherited wealth, UBS notes that a significant 75% of Australian billionaires achieved their status independently, without familial assistance. The global wealth manager anticipates over the next two decades, more than 1000 billionaires worldwide will transfer a staggering US$5.2 trillion to their heirs.
Gina Rinehart, chair of Hancock Prospecting, is currently Australia's wealthiest person, with a net worth of A$37.1 billion. Other prominent names in the list of the country's richest include Andrew Forrest of Fortescue (ASX:FMG) Metals, valued at A$35.21 billion, and Anthony Pratt and family, with a fortune of A$27.87 billion.
Global billionaire wealth rose 9%
The global billionaire population also saw growth, with their number increasing by 7% globally, rising from 2376 to 2544. Their combined wealth rose 9%, reaching US$12 trillion, led predominantly by consumer and retail business billionaires in Europe.
In the international context, the United States has the highest number of billionaires at 751, followed by China with 520. India, Germany, and the United Kingdom also rank high in terms of billionaire populations.
A survey of 79 billionaire clients of UBS revealed concerns predominantly about geopolitical tensions and inflation, with a strong belief in artificial intelligence as a significant commercial opportunity. Among billionaires with inherited wealth, 68% expressed a desire to expand upon their family's achievements.
Interestingly, UBS observed a trend among non-self-made billionaires towards impact investing and sustainable business practices, with a focus on environmental and social issues. This shift reflects a broader movement towards responsible wealth management and investment among the ultra-wealthy.