The media release from Oxfam Australia yesterday, Australian billionaires each made $67,000 an hour, 1300 times more than the average Australian got me thinking – out of interest, not envy – how these poor sods acquired their wealth.
The wealth of Australia’s richest individuals, I’ve found, stems from a variety of sectors, with mining, technology, real estate, and manufacturing being predominant sources. Here’s an overview:
Mining
Gina Rinehart is Australia’s richest person, with her wealth primarily derived from Hancock Prospecting, an iron ore mining company founded by her father, Lang Hancock. Her success is attributed to the expansion of mining operations, especially in iron ore, and strategic investments in lithium, which is crucial for electric vehicle batteries.
Andrew Forrest made his fortune through Fortescue Metals Group, another iron ore mining giant. His wealth also reflects investments in renewable energy and philanthropy, showcasing a shift towards sustainability.
Clive Palmer became a billionaire primarily through his involvement in the mining industry in Australia. He founded Mineralogy in 1984, which has large iron ore reserves in Western Australia. His wealth significantly increased when, in 2006, he leased these mining rights to the Chinese government-owned company CITIC Ltd. for $415 million, with an agreement that included ongoing royalties on every tonne of ore mined. This deal was pivotal as it ensured a steady stream of income from royalties, especially when iron ore prices were high.
Technology
Mike Cannon-Brookes and Scott Farquhar are co-founders of Atlassian, a software company known for its collaboration and productivity tools. Their wealth is largely due to the company’s success and their strategic selling of shares to enhance liquidity.
Melanie Perkins and Cliff Obrecht founded Canva, a graphic design platform, which has seen its valuation soar, significantly increasing their net worth. Their success comes from leveraging a user-friendly design interface for the mass market.
Real Estate
Harry Triguboff, known as “High Rise Harry,” has built his wealth through Meriton, a company that has developed tens of thousands of apartments across Australia. His approach to housing development during times of high demand has been a key factor in his wealth accumulation.
Frank Lowy founded Westfield, which became one of the world’s largest shopping center companies before its sale. His wealth now partly comes from managing the family’s investment portfolio.
Manufacturing
Anthony Pratt leads Visy Industries, a paper, packaging, and recycling company, which has expanded globally, making him one of Australia’s wealthiest through traditional manufacturing and recycling businesses.
Inheritance and Diversified Investments
Wealth is often inherited or built upon family businesses, like with Angela Bennett from the mining sector, whose wealth comes from the legacy of her father’s mining operations.
Some of the richest Australians also diversify their wealth through various investments, including high-value property purchases, shares in public companies, and private businesses, which can significantly boost their net worth.
This short list shows that while mining remains a significant source of wealth for Australia’s richest, there’s a noticeable diversification into technology, real estate, and even sustainable energy, reflecting broader economic trends and personal strategic investments.
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For some of those fabulously rich,too much money is never enough,and we well know who those greedy porkers are.One them has the current opposition leader as her personal bumboy.