Average Savings Rate Australia: What ABS Data Says About How Australians Save

Australia's household savings rate swung from around 22% during the 2020–21 pandemic period down to approximately 1–3% by late 2022 and into 2023 — one of the sharpest drawdowns in the developed world. That collapse matters because many Australians are benchmarking themselves against a savings norm that no longer reflects current conditions.

What the ABS Household Expenditure Survey shows

The Australian Bureau of Statistics Household Expenditure Survey (HES) is the primary source for understanding how Australian households allocate income. The most recent full HES cycle covers 2015–16 data, with supplementary national accounts data from the ABS filling in more recent years.

Key figures from the ABS data:

Average household savings rate (2015–16 HES): Roughly 7–9% of gross household income across all quintiles
Bottom income quintile: Negative or near-zero savings rate; many households in the lowest quintile are net dissavers, spending more than they earn (often drawing on transfers or credit)
Middle three quintiles: Savings rates of approximately 4–10%
Top quintile: Savings rates of 15–25%, with the highest earners accounting for a disproportionate share of total household savings

The national accounts data paints a more volatile picture. The household saving ratio — which measures net saving as a percentage of net disposable income — peaked above 20% during COVID lockdowns, fell sharply as restrictions lifted, and has since returned to historically low levels. As of 2023–24 estimates, the ratio sits in the low single digits.

This gap between the HES microdata and the national accounts figure is partly methodological. The HES captures actual surveyed expenditure patterns; the national accounts figure is an aggregate residual. Both are useful, but they measure slightly different things.

How the average savings rate in Australia varies by income and age

Income is the strongest predictor of savings rate. This is consistent across the ABS HES and comparable surveys in other countries including the BLS Consumer Expenditure Survey in the US and Statistics Canada's Survey of Household Spending.

By income quintile (approximate ABS HES ranges):

Quintile	Gross household income (weekly, approx.)	Indicative savings rate
1st (lowest)	Under $700	Negative to 0%
2nd	$700–$1,400	0–3%
3rd	$1,400–$2,200	3–7%
4th	$2,200–$3,300	7–13%
5th (highest)	Over $3,300	15–25%+

By age of household reference person:

Households aged 25–34 tend to have lower savings rates due to housing costs, HECS/HELP debt repayments, and early-career incomes
Peak saving years typically fall between 45–54, when incomes are highest and some housing costs have stabilised
Retired households (65+) frequently show negative savings rates as they draw down superannuation and other assets — which is economically expected, not a problem

Superannuation complicates the Australian picture. Mandatory employer contributions (currently 11.5%, rising to 12% in 2025) add a forced savings layer on top of voluntary saving. Many Australians who appear to have a low voluntary savings rate are still accumulating wealth through super. Whether you count super contributions in your savings rate affects your benchmark significantly.

Housing costs and their effect on savings rates across Australian cities

Australia's housing market compresses savings rates at the city level. Sydney and Melbourne rents and mortgage costs are significantly higher than in regional areas or smaller capitals, which mechanically reduces the share of income available to save even at comparable income levels.

Approximate median weekly rents (Domain/CoreLogic data, 2024):

Sydney: $650–$750/week for a 2-bedroom unit
Melbourne: $550–$620/week
Brisbane: $550–$600/week
Perth: $600–$650/week (elevated post-2022 due to population inflow)
Adelaide: $450–$500/week

A household earning the median Australian household income of approximately $110,000–$120,000 gross and paying Sydney rents has a materially different savings capacity than the same household in Adelaide. The raw national average savings rate conceals these geographic differences.

Mortgage holders face a different constraint again. The RBA's rate hiking cycle between 2022 and 2023 increased variable mortgage repayments sharply for many owner-occupier households, directly reducing disposable income available for savings. This is the main mechanical driver behind the fall in Australia's aggregate household savings ratio during that period.

For a direct comparison of how savings rates vary across cities internationally, PathVerdict — check your savings rate lets you enter your specific income and expenses and benchmark against local data rather than national averages.

How Australia's savings rate compares internationally

Australia's savings position is broadly mid-range among developed economies, though the comparison is complicated by how different countries treat pension contributions.

Using comparable household survey data:

Germany (Destatis EVS): Average savings rates of 10–13%, with a cultural and regulatory emphasis on precautionary saving
France (INSEE Budget de Famille): 8–12% average, with strong pension provision affecting voluntary saving behaviour
United Kingdom (ONS Living Costs and Food Survey): Average savings rate of 5–8% before COVID; fell sharply post-pandemic similarly to Australia
United States (BLS Consumer Expenditure Survey): Approximately 4–8% for median households, with significant variation by income quintile
Netherlands (CBS): Higher average rates, 10–15%, partly reflecting strong institutional saving culture

Australia's mandatory superannuation system makes direct comparison difficult. If you include employer super contributions in Australian household savings rates, Australia's effective savings rate is meaningfully higher than headline figures suggest. If you exclude super and measure only discretionary savings, Australia sits closer to the US and UK.

For a detailed look at the methodology behind these cross-country comparisons, see How we calculate savings benchmarks.

What counts as a good savings rate for Australians

"Good" depends on what you're saving for and where you are in life. That said, some practical reference points from the data:

Below 5% (excluding super): You're in the lower half of savers among wage-earning households. Sufficient only if you have no significant financial goals or are very close to retirement with adequate super.
5–10%: Roughly median for working-age Australian households. Maintains some financial buffer but builds wealth slowly.
10–15%: Above average. With super on top, this puts you on a reasonable trajectory for retirement and medium-term goals.
15%+ (excluding super): Top quintile territory. Accelerates wealth accumulation meaningfully.

These benchmarks assume you're counting voluntary savings only and that super is running in the background. If you're self-employed without consistent super contributions, you need to be saving more aggressively on a voluntary basis to compensate.

The What's a good savings rate? guide covers the underlying logic behind these thresholds in more detail. And if you're asking yourself Am I saving enough?, the answer depends on your income, city, and timeline — not just one national average.

Frequently asked questions

What is the average savings rate in Australia right now?

Based on ABS national accounts data, Australia's household saving ratio fell from pandemic highs above 20% to approximately 1–4% by 2023–24. This aggregate figure reflects the drawdown of savings built during lockdowns. The ABS HES microdata (2015–16, the most recent full survey) shows median working-age households saving roughly 5–10% of gross income voluntarily, with employer superannuation contributions adding another 11.5% on top.

Does superannuation count as part of my savings rate?

It depends on what you're measuring. Employer super contributions are compulsory and don't appear in most household expenditure surveys as "savings" in the traditional sense. For practical financial planning, you should track both: your voluntary savings rate (what you're putting aside each month from take-home pay) and your super balance trajectory separately. A very low voluntary savings rate is still a concern even if super is accumulating normally.

Why has Australia's savings rate dropped so sharply since 2021?

The fall reflects the reversal of pandemic-era forced savings. During 2020–21, restrictions on spending (travel, hospitality, entertainment) combined with government transfers produced an unusually high savings ratio. As restrictions lifted, households spent down these accumulated savings while also facing higher mortgage repayments from RBA rate rises and elevated inflation. The result was a mechanical compression of the savings ratio.

How do Australian savings rates compare to other countries?

Australia is broadly mid-range. Germany and the Netherlands consistently show higher voluntary household savings rates (10–15%). The US and UK are comparable to Australia at 4–8% for median households. However, Australia's mandatory super system means total retirement savings accumulation is higher than the voluntary rate alone suggests. Direct comparisons require careful treatment of pension and superannuation contributions.

If you want to know exactly where your savings rate sits relative to other Australian households — rather than relying on national averages that may not reflect your city, income level, or age — use PathVerdict — check your savings rate. Enter your income, rent, and monthly expenses and get a benchmarked verdict in under 30 seconds, free, no signup required.