The Impact of Housing Inheritance on the Distribution of Wealth in Australia

Home ownership has enabled most Australian households to accumulate significant wealth. Does the transfer of this wealth via inheritance offer a significant capital gain to beneficiaries and how does it influence the distribution of wealth? Data are presented showing the value of wealth at death before and after it is divided amongst beneficiaries. Particular attention is paid to how wealth varies between various categories of wealth-holders, before considering the role of housing in wealth at death and the value of the wealth inherited by beneficiaries. The timing and composition of inherited wealth is an important factor in its impact. However, it is concluded that inherited wealth has little effect on the distribution of wealth in society although it may have significant influences on the life-course of some individuals.