Australians are expected to receive $224 billion yearly until 2050, as reported by the Productivity Commission.
“Wealth transfers are large and growing,” stated commissioners Lisa Gropp and Catherine de Fontenay. “Over $120 billion was passed on in 2018, more than double that in 2002.”
To put that into perspective, the Australian government spent a total of $80 billion on healthcare between 2018 and 2019.
According to the commissioners, inheritances accounted for 90% of wealth transfers. The remaining 10 come in the form of gifts, which are distinct from inheritances as they’re received while the giver is alive.
And both are expected to increase fourfold in the coming decades.
They state that many factors contribute to this dramatic increase in wealth transfers, including an ageing population, declining fertility rates, a booming housing market, and the older generation increasingly accumulating wealth during retirement.
Government policies like the taxation and transfer system and superannuation policies have also had their effect.
In short, Australians have much more to give, and the trend is set to continue.