Instability in share prices and a poor housing market are being blamed for the sharpest decline in personal wealth for 18 years.
Average wealth which peaked in September last year, has fallen by $12,000 to $237,000 in June.
A decline this dramatic hasn't been seen since the recession of the 1990s, and comes after a near doubling of wealth over the last decade.
There's speculation it'll cause Australians to keep their wallets shut, and hoard proceeds from the Prime Minister's $10.4 billion rescue package.
Commsec Economist Craig James says more interest rate cuts may be needed to ensure people start spending again.