Last year more than 10 000 millionaires moved to Australia, including hundreds of South Africans.
This is according to the latest AfrAsia Bank Global Wealth Migration Review report. Millionaires are described as high-value individuals who have net assets of $ 1 million or more.
According to a report from The Sydney Morning Herald, 90% of the millionaires who moved to Australia came from China, followed by Malaysia, South Africa (1.3%) and Vietnam.
Visa applications under Australia’s business innovation and investment program, which include investors with more than $ 1 million in assets, increased by 74% from 5 781 to 9 051 in 2016/17.
The report also shows that China has lost almost 10 000 millionaires. The millionaires moved mainly to America, Canada and Australia.
According to the report, millionaires move mainly to Sydney, Melbourne, the Golden Coast, the Sunshine Coast, Perth and Brisbane. The main reasons why millionaires go to Australia is according to the report because of the country’s location, which makes it a better base for doing business in emerging Asian countries such as China, Japan, South Korea, Hong Kong, Singapore and Vietnam.
Another great reason is safety. Australia was once designated as the safest country in the world for women and is considered a safe country to raise children. Australia’s inheritance tax is also lower than that of America. Education and the climate also count among the reasons why millionaires prefer Australia.
Australia appears in the ninth position on the report’s list of the ten richest countries worldwide with $ 6 142 billion. The wealth, however, refers to the private wealth held by all the individuals living there. This includes all their assets (property, cash, shares, business interests) minus any liabilities.
On the list of the ten richest countries in the world per capita Australia holds the fifth position with a wealth of $ 279 200 per capita.
The report also affects the level of wealth inequality in the world’s largest countries. This was done by looking at the amount of wealth controlled by millionaires – the higher the ratio, the more uneven the country. If the millionaires control more than 40% of the country’s wealth, then there is very little space for a meaningful middle class. Ideally, the ratio should be less than 30%. Accordingly, Japan (23%) is listed first, followed by New Zealand (26%), Norway (27%) and Australia at 28%.
The report is already a potential negative factor in establishing a wealthy person in a country that can boost property prices to levels that local residents can not afford. “However, there are control measures that can be implemented to prevent it from explopping, such as the measures introduced in Australia, whereby foreigners are prevented from buying second-hand homes.
By the end of 2017, Australia had 376 600 millionaires, 12 340 multimillionaires (individuals with assets of $ 10 million or more) and 36 billionaires (individuals with assets of $ 1 billion or more).
Sydney is also on the list of the world’s top 20 most expensive real estate properties with the average square meter that can chase you up to $ 25,000.