When we surveyed our clients, over 32% responded that their primary motivation to invest was to supplement their income with passive income. When you look at numbers, it’s easy to see why passive income is a common investment strategy in Australia.

When you look at the national averages for incomes and expenses, it’s easy to see why the biggest proportion of investors are those who want to supplement their income to support their day-to-day life.

These figures are for a couple with no children:

• According to research firm McCrindle, the middle quintile for household income in Australia is $88,764. Using the mean average is not an accurate representation, since a small percentage of ultra-high income earners skew the figure higher.
• According to the Household Expenditure Measure, which banks use to calculate ‘essential’ household expenses when evaluating a loan, the typical expenditure for a couple with no children is $49,416. This does not include rent, mortgage repayments, HECS/HELP loans, or unessential discretionary spending.
• According to the 2016 Census, the median annual cost of mortgage repayments is $21,060.
• That leaves just $18,288 left over, before tax. Assuming PAYG tax on one income of $50,000 and one income of $38,000, there is just $6,594 left over.