NATIONAL

Global wealth migration up

Global wealth migration is accelerating as around 82,000 ultra-rich people shifted overseas in 2016, compared to 64,000 in 2015 and Australia is the top country for millionaire inflows, says a report.

Millionaires or High Net Worth Individuals (HNWIs) refer to individuals with net assets of $1 million or more.

According to New World Wealth’s latest report on global wealth and wealth migration trends in 2016, for the second straight year, Australia remained the top country worldwide for millionaire inflows, beating out traditional destinations such as the U.S. and the U.K.

An estimated 11,000 millionaires moved to Australia in 2016 compared to 10,000 that moved to the U.S. and 3,000 that moved to the U.K.

Main reasons

The reasons behind HNWIs preferring Australia to the U.S. and the U.K. is that it has one of the best healthcare systems in the world and its location makes it a good base for doing business in emerging Asian countries such as China, Hong Kong, Korea, Singapore, Vietnam and India.

Moreover, Australia is relatively immune to the turmoil in the West Asia and the related refugee crisis in Europe and it has lower inheritance taxes than the U.S. and much lower inheritance taxes than the U.K. Other countries that experienced large inflows of HNWIs in 2016 include Canada, UAE, New Zealand and Israel.

On the other hand, countries that lost large numbers of HNWIs in 2016 included France, Turkey and Brazil. Large outflow of millionaires from France (over 12,000 millionaires is 2016) is notable. France is being heavily impacted by rising religious tensions between Christians and Muslims, the report said.

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