Household wealth grew by 4 per cent (A$502 billion) in the December 2020 quarter, driven by higher residential property values.
According to the latest Australian Bureau of Statistics, growth in the value of superannuation balances and directly held equity investments also contributed.
The quarterly growth rate was the highest since 2009.
Both total household wealth, at $12 trillion, and household wealth per capita, at $467,700, were at record levels.
Over the year to December, household wealth increased by 7 per cent, which was below the long-term average of 7.3 per cent.
The ratio of housing debt to gross disposable income fell from 139.2 per cent to 130 per cent over the quarter, as income growth of 1.2 per cent exceeded housing debt growth of 1 per cent.
The ratio has fallen for the past four quarters, falling a total of 2.5 per cent last year – the biggest reduction in the ratio since 1990.
The ABS said the growth in gross disposable income was driven by government income support packages.
The ratio of housing debt to residential assets fell from 27.1 per cent to 26.5 per cent, reflecting the increase in property prices.
Households increased their deposits by $28.1 billion during the quarter and incurred a $22.8 billion increase in borrowings. Increased borrowings were made up of $21.7 billion of long-term loans and $1 billion of short-term loans.
The ABS said the increase in household savings was due to government income support packages.