Net Worth Australia – What Counts as Assets & Liabilities
What Counts in Your Net Worth (And What Doesn’t)
Key Points (Quick Scan)
Net worth = assets minus liabilities, but not everything belongs on the list.
Some “assets” are overestimated (like cars or furniture).
Liabilities can be underestimated (like BNPL or tax debts).
Knowing what counts gives you a true picture of financial health.
Why This Matters
When couples first calculate their net worth, they often over-inflate the “good” and understate the “bad.” The result? A number that feels comforting but isn’t accurate.
Your net worth should reflect real, usable value. That means including assets you could actually access, and all debts you truly owe. Anything else just gives a false sense of security.
As Dave The Money Dad, I’ve seen people count things like jewellery or the purchase price of their car, while ignoring credit card balances or buy now, pay later accounts. The outcome looks fine on paper, but the reality tells another story.
What Counts as an Asset?
Here’s what you can confidently include:
Cash & savings accounts – real, liquid value.
Superannuation balances – even though you can’t access it today, it’s part of your long-term wealth.
Investments – shares, ETFs, managed funds, or investment properties.
Home equity – the value of your property minus the mortgage.
Cars/vehicles – but only at current market value (not what you paid).
💡 Tip: Be conservative with valuations. Better to underestimate than over-inflate.
What Doesn’t Really Count?
Not everything you own belongs on the net worth list.
Furniture & appliances – resale value is minimal.
Clothes & personal items – they have use value, not financial value.
Future income – your salary isn’t an asset until it hits your account.
Think of it this way: if you had to sell it tomorrow, what could you reasonably get? That’s the number that counts.
What Counts as a Liability?
This is where couples often underestimate. Your liabilities should include:
Mortgage balance – the full remaining debt.
Personal loans & car loans – not just the monthly repayment, but the total owing.
Credit cards – balance outstanding, even if interest-free.
Buy Now, Pay Later (BNPL) – Afterpay, Zip, Klarna, etc.
HECS/HELP or student loans – yes, they count too.
Tax debts or unpaid bills – if it’s owed, it’s a liability.
💡 Tip: Be brutally honest here. Net worth is only useful if it reflects reality.
A Story of “Hidden Debts”
There is a couple who felt confident because their home had jumped in value. On paper, they thought they were worth nearly $800,000. But once we factored in personal loans, maxed-out credit cards, and $12,000 of BNPL debt, their true net worth was about half that.
It was a wake-up call — and while it stung, it gave them the clarity they needed to make changes. Within a year, they’d cut those debts in half and watched their true net worth climb steadily.
NET WORTH BECAME THEIR SCORECARD.
Why Accuracy Builds Confidence
It’s not about impressing anyone with a big number. It’s about knowing exactly where you stand so you can take the right steps.
Overestimating assets can make you complacent.
Underestimating liabilities can leave you blindsided.
Accurate tracking builds trust between partners and confidence in the plan.
Internal Links for Next Steps
Ready for the Real Picture?
If you and your partner want financial confidence, start with the truth. Knowing what truly counts in your net worth is the first step to building wealth that lasts.
"46% of Australians starting 2025 with debt, 30% unable to create a personal budget" - Salvation army
Ready to Finally Feel on Top of Your Finances?
The first step is to understand your real position. It doesn't matter if you have 5, 6 or 7 digit income.
I have made this super easy, so even i use it regularly to create and maintain my wealth scorecard.
So now you can too. Get access to the DTMD Financial Scorecard here - It is FREE to use
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FAQ: Assets & Liabilities
Q: Should I include my car in net worth?
A: Yes, but at market value, not purchase price. Cars depreciate quickly.
Q: What about HECS/HELP debt — does it count?
A: Absolutely. Even though repayments are income-based, it’s still a liability and should be listed.
Takeaways (Expanded Recap)
Net worth is assets minus liabilities, but accuracy matters.
Count assets that have real, usable value (cash, super, home equity, investments).
Don’t pad the list with furniture, clothes, or inflated values.
Include all liabilities — mortgage, loans, credit cards, BNPL, HECS/HELP, tax debts.
The clearer the picture, the stronger the plan.
Final Thoughts
To wrap up: your net worth is only as useful as it is accurate. Being honest about what counts — and what doesn’t — can feel confronting, but it gives you the clarity you need to move forward.
Remember: progress beats perfection. Even if your number isn’t where you want it to be today, tracking it honestly is the first step to building a stronger tomorrow.
— Dave The Money Dad
Financial Disclaimer
This is not financial advice. The information provided is for educational purposes only. Please consider your personal circumstances or seek professional advice before making financial decisions.
