Your net worth is the most important single number in personal finance — the total picture of your financial position. It is assets minus liabilities: what you own minus what you owe. Calculating and tracking it regularly is the foundation of long-term financial progress.
The Net Worth Formula
$$\text{Net Worth} = \text{Total Assets} - \text{Total Liabilities}$$
A positive net worth means you own more than you owe. A negative net worth (common early in life with HECS-HELP debt and a mortgage) improves as you pay down debt and build assets.
What to Include as Assets
Financial assets:
- Cash and savings accounts
- Superannuation (your current balance — check via myGov)
- ASX shares and ETFs (market value)
- Managed funds
- Term deposits
- Cryptocurrency (market value)
- Bonds
Real property:
- Primary residence (estimated market value)
- Investment properties (market value)
Other assets:
- Vehicle(s) (current market value — not purchase price)
- Business interests (estimated value)
- Personal property of significant value (art, jewellery, collectibles with a market)
Exclude (unless tracking for other purposes):
- Everyday personal items (furniture, appliances, clothing)
- Items with negligible resale value
What to Include as Liabilities
- Mortgage balance (home loan)
- Investment property loans
- HECS-HELP debt (confirm current balance via ATO/myGov — this is often overlooked)
- Personal loans
- Car loans
- Credit card balances (total outstanding, not credit limit)
- Buy Now Pay Later (BNPL) balances
- Any other debts
Net Worth Calculation: Australian Example
| Assets | Value |
|---|---|
| Home (estimated market value) | $900,000 |
| Superannuation balance | $180,000 |
| ASX ETF portfolio | $55,000 |
| Savings account | $22,000 |
| Car | $18,000 |
| Total assets | $1,175,000 |
| Liabilities | Balance |
|---|---|
| Mortgage | $520,000 |
| HECS-HELP debt | $38,000 |
| Car loan | $8,000 |
| Credit card | $2,000 |
| Total liabilities | $568,000 |
Net worth: $1,175,000 − $568,000 = $607,000
Average Net Worth in Australia by Age
The ABS (Australian Bureau of Statistics) publishes the Survey of Income and Housing with household wealth data. The most recent data (2019–20) shows mean and median household net worth — individual figures are roughly half:
| Age group | Median household net worth (ABS 2019–20) |
|---|---|
| Under 35 | ~$170,000 |
| 35–44 | ~$490,000 |
| 45–54 | ~$860,000 |
| 55–64 | ~$1,100,000 |
| 65–74 | ~$1,200,000 |
| 75+ | ~$980,000 |
Important caveats:
- These are household figures (typically two adults) — individual net worth is lower
- Property drives Australian household wealth — Australians who own a home have materially higher net worth than renters
- HECS-HELP is rarely tracked in surveys — many reported net worth figures understate true debt
- Figures are 2019–20 — property prices have changed significantly since; updated ABS data is available at abs.gov.au
How to Track Net Worth Over Time
Method 1 — Spreadsheet: List all assets and liabilities in a spreadsheet. Update quarterly. Track the change over time. Free, private, and flexible.
Method 2 — Pocketsmith: Australian personal finance app — connects to bank accounts, super funds, and investment accounts. Automatically tracks balances and calculates net worth over time.
Method 3 — Sharesight: For share portfolio tracking specifically — Sharesight tracks ASX and international shares, distributions, and returns. Pairs well with a broader spreadsheet for total net worth.
Method 4 — myGov / ATO: Check your super balance and HECS-HELP balance via myGov — critical components often missed.
What Net Worth Tells You (and What It Doesn’t)
Net worth tells you:
- Your overall financial position at a point in time
- Whether you are building or destroying wealth over time
- How your financial progress compares to goals (retirement target, FIRE number)
Net worth doesn’t tell you:
- Your cash flow or monthly budget health
- Whether you can afford your lifestyle (liquidity is not the same as wealth)
- Your financial resilience (a $1M house and $900K mortgage is technically positive net worth but highly leveraged)
Liquid net worth — net worth excluding your primary residence — is often more useful for financial independence planning, since the family home generates no income and cannot be easily drawn down.
$$\text{Liquid net worth} = \text{Net worth} - \text{Primary residence equity}$$
HECS-HELP and Net Worth
HECS-HELP debt is indexed to CPI annually (applied in June). Unlike most debt, HECS-HELP has no interest — but it is a real liability that grows with inflation. Including it in your net worth calculation gives a more accurate picture than ignoring it.
Check your current HECS-HELP balance via ATO online services at myGov.
Related Calculators
- Investment Calculator Australia
- Retirement Calculator Australia
- FIRE Number Calculator Australia
- Investment Calculators hub
Frequently Asked Questions
What is the average net worth in Australia? ABS data (2019–20) shows median household net worth of approximately $557,000 — though this varies significantly by age and home ownership. Homeowners have dramatically higher net worth than renters. Individual net worth for a single person is typically lower than household figures.
Should I include my house in my net worth? Yes — your home’s estimated market value minus the mortgage balance is a component of net worth. However, your home generates no income and cannot easily be drawn down — so financial independence planning often focuses on liquid net worth (excluding primary residence) or investable assets.
Does HECS-HELP count as a liability in Australia? Yes — HECS-HELP is a real financial obligation that reduces your take-home pay once your income exceeds the repayment threshold ($54,435 in FY2025–26). It is indexed to CPI annually. Include your current HECS-HELP balance as a liability in your net worth calculation for an accurate picture.
This article provides general financial information only. For advice tailored to your situation, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.