A once in a generation opportunity to reshape
the nation
Australia is, by any financial measure, a very wealthy nation. The transition of wealth over the next 20 years presents a once in a generation opportunity to unlock significant pools of capital, which have accumulated in many Australian households, for social impact. This is important, because in this same period of wealth creation, we have also seen increasing disadvantage for many across society.
The aim of this report is to provide a deeper understanding of bequests in order to encourage an increase in the flow of capital to the social sector and help address some of the pressing social and environmental needs.
"Total inheritances are estimated to total around $150 Billion in 2024, and $5.4 Trillion over the next 20 years".
- Bequest report
Key findings
- Australia’s population growth is slowing which will contribute to an acceleration in the number of annual deaths from around 180,000 currently to over 330,000 within 40 years.
- Australia remains near the top globally for average household wealth and while inequality remains a pressing issue, the wealth gap between young and old is large and exacerbated by current cost of living issues. Importantly, the wealth transfer is happening from the older and wealthier cohort.
- Charitable bequests, whether one off or from a past gift to a charitable trust or foundation, regularly make up 20 of the largest 50 annual philanthropic gifts in Australia. They are mostly unrestricted in their use and have a return on investment around six times the average for all fundraising, making them most valuable source of income by quite a margin.
- Only 1% of this $150 Billion ($1.3 billion) will be given to charity. This compares to 1% ($229mil) in New Zealand, 3.7% ($7.6bn) in the United Kingdom, and 4.4% ($69 bn) in the United States.
- Australia’s position as a wealthy but ageing nation provides a strong baseline for charitable bequests. However, the currently low proportion leaving a bequest and the low percentage of assets left, falls far short of international peers and the levels of giving by people during their own lifetime. Country differences such as Inheritance and Estate taxes are part of the reason, but practise, culture, and a lack of discussion about such bequest options are easy opportunities for change.
"Roughly 6.5% of wills in Australia include a gift to charity. This compares to 5% in New Zealand, 10% in the United States and 13.7% in the United Kingdom.
Health and Medical Research, animal protection, and welfare are some of the top causes receiving donations through bequests".
- Bequest Report
"Australia is indeed a fortunate country, with great wealth...how that is handled in the next few decades...can reshape our country".
- John McLeod, Senior Research Consultant, Family Advisory and Philanthropic Services, JBWere Australia
Helping you use these insights to fulfil your ambitions
For decades, we have partnered with our for-purpose clients to support them in shaping a better society. The experts in our Philanthropic Services team are wholly focused on leveraging the heritage, strength, and scale of JBWere and our international network, so we can provide tailored advice and insight to our diverse range of clients.
As a trusted partner we will develop a deep understanding of our for-purpose client’s mission, needs and circumstances. We then proactively leverage our experience, expertise and networks to provide tailored advice, build capacity and facilitate valuable connections to ensure our clients are positioned to fulfil their ambitions.
If your family is considering the role of bequests in your succession planning, or your for-purpose organisation who would like to explore how to turn these insights into strategy, please contact your JBWere adviser or email philanthropic.services@jbwere.com
For support with banking and investments from NAB Private Wealth, visit nabprivate.com.au
"The Bequest Report outlines the significant scale of the generational wealth transfer which creates an immense opportunity for us a country to increase our giving up to the level of global peers.
We need to collaborate as a sector to help more Australians to invest in the sector if we want to achieve greater social change".
- Jodi Kennedy, General Manager - Philanthropy and Community Trusts - Equity Trustees
Contact the JBWere Philanthropic Services Team
Learn how we partner with our for-purpose clients to help them deliver on mission.