Australian Bureau of Statistics data issued yesterday also showed the level of foreign investment in Australian shares reached a 12-year high of 41.9per cent in the March quarter, after a net increase of $20billion from 40.3per cent on three months earlier.

Households' financial assets, such as shares and savings, fell by $23.6billion or 1.1per cent in the quarter to a two-year low of $2093billion. Liabilities were up 1.2per cent, or $15.5billion, to a record $1306billion.

CommSec economist Savanth Sebastian said this meant net household financial wealth fell by 4.7per cent or $39.1billion to $786.6billion.

''Over the past year, financial wealth has fallen by 24.9per cent the second-biggest decline since records were first maintained in 1988. Net household wealth per capita fell from $38,148 to $36,183. Wealth is down 26.3per cent on a year ago and only up 10.1per cent over the past decade,'' he said.

''The latest figures show that the average Australian has lost almost $23,000 since wealth levels hit record highs just 18 months ago.''

However, the recovery in the sharemarket, government cash handouts and low interest rates ''should ensure that wealth levels stabilise in coming quarters''.

The figures also showed businesses were strengthening their balance sheets; net assets reached $42.9billion, which was the highest reading in two years.

For more, pick up a copy of today's Canberra Times