Household Debt-to-Income Ratio — methodology

What this metric measures

Total household debt (mortgages, personal loans, credit cards) as a percentage of annual household disposable income. Australia's ratio is among the highest in the world.

Why it matters: High household debt makes families vulnerable to interest rate rises and income shocks. It directly amplifies mortgage stress and limits consumer spending — a risk to the entire economy.

Source & provenance

Publisher

ABS

Update frequency

quarterly

Licence

CC BY 4.0

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How the score is computed

The score is a 0–100 normalisation of the latest observation, compared to a baseline window. The traffic-light rating (RAG) reflects both the absolute level and the recent trend.

Direction

Lower is better

Trend window

60 months

Baseline

Last 10 years

{
  "red_min_pct_of_baseline": 110,
  "amber_max_pct_of_baseline": 110,
  "green_max_pct_of_baseline": 95
}