As the global financial crisis bites the wealth of every Australian man, woman and child has plummeted by a record 9 per cent or about $19,000.
New figures released have shown that national wealth in property, shares and other assets fell to $4956 billion in the third quarter of last year from $5281 billion 12 months ago.
Predictions of a looming recession could wipe even more off battlers bank balances.
Mining giant BHP Billiton announced on Tuesday that they would axe 3,300 Australian jobs.
Treasurer Wayne Swan said that what we were seeing was a sober reminder of the unwinding mining boom, caused by the global financial crisis and in particular the slowing of the economy in China. Thus putting the Government under further increasing pressure to unveil its second round of stimulus measures to keep the economy ticking over.
CommSec stated that the Federal Government should respond to the drastic circumstances by temporarily cutting the GST and bringing the scheduled tax cuts forward to March.
Prime Minister Kevin Rudd promised to be frank with Australians on the impact of the financial crisis and said he didn't intend to guild the lilly one bit.
Despite promising to announce plans to deal with the crisis, Mr. Rudd offered no new measurers on how to help Australians.
Australian Bureau of Statistics data has revealed the biggest downgrade in Australian wealth since records began in 1960. Private debt was on the rise by 5 per cent during the September quarter to $616 billion. Per Capita debt rose from $27,450 to $28,000.
Chief economist Craig James from CommSec said it would be "nothing short of an exceptional" if Australia avoided a recession, but added that it was important to keep the wealth slump in perspective.
Commodity prices have sunk as demand slows amid the global economic downturn, with many producers forced to cut output and shed jobs to remain competitive.