The facts about High Net Wealth and what it means to your family.
Many families and individuals are unsure where they fit within the wealthy, high net wealth and ultra-wealthy environment. To most, it is simply a function of being happy, healthy, and providing for loved ones in a comfortable manner rather than what category they fit within.
Definitions of High Net Wealth and Ultra High Net Wealth can be quite varied and depend on all kinds of factors including what time of year it is, whom you ask and whether they are thinking globally or locally.
To simplify matters, let’s break it down and create some ranges to get an idea of where your family or Hi
Net wealth in the finance industry is commonly described as the amount of investible assets that exceeds your liabilities. So, this generally excludes the investment in your family home and any toys or ‘collectibles’ you may have.
Wealthy Individuals within Australia are generally deemed to be those with net investible assets (NIA) over $1M (or net of over $2.5M including the family home) and earning more than $250,000 per annum. Having said this, the ATO categorise ‘Wealthy Individuals’ as those who control a net wealth of $5M or more.
Furthermore, the ATO categorise High Wealth Individuals as those who control a net wealth of $30M or more and it’s this group that is regularly targeted by the ATO to ensure all their tax obligations are being met.
In 2021, the Australian Financial Review listed the Top 100 Richest People in Australia whose net wealth ranged from $1.18B to Gina Rinehart who was valued at the time at approx. $31.06B. This group makes up a very small percentage of the Australian population and would be included in the Ultra-High Net Wealth category.
Within the Keystone family, we use the following broad categories as a guide only. The Keystone model isn’t based on how much you’re ‘worth’.
Our model is based on how our team can best add value to your family & your family’s assets (including businesses).
• Wealthy families/ Businesses: NIA between $1M – $30M
• High Net Wealth families/ Businesses: NIA between $30M – $500M
• Ultra-High Net Wealth families/ Businesses: NIA over $500M
Although these breakdowns are a good benchmark, the Keystone Private team believe there is no typical family office client.
Every family or individual requires a tailored service specific to their circumstances.
We pride ourselves on our core values of independence, honesty, and transparency to provide helpful advice and ongoing value to every family and business we work with. For more information contact the Keystone team on (07) 3229 7955 or info@keystoneprivate