Calculating net worth in Australia involves determining the difference between an individual’s assets and liabilities. For instance, if an individual owns assets worth $500,000 and has liabilities of $200,000, their net worth would amount to $300,000.
Knowing how to calculate net worth in Australia holds great significance as it provides a clear snapshot of one’s financial health, enabling informed decision-making regarding investments, debt management, and long-term financial goals. Historically, the concept of net worth has been used by financial institutions to assess individuals’ creditworthiness.