What Are Quartiles? How Australians Can Use Quartiles for Better Financial Decisions

If you’ve ever wondered how financial analysts, economists, or even everyday Australians compare investment returns, property prices, or household incomes, you’ve likely brushed up against the concept of quartiles. Far from just a math-class term, quartiles are a statistical powerhouse in the finance world. In 2025, as Australians navigate volatile markets and new economic policies, understanding quartiles has never been more useful—or more relevant.

What Are Quartiles and Why Should You Care?

Quartiles break a set of numbers into four equal parts, helping you see how data is distributed. Imagine lining up all the house prices in Sydney from cheapest to priciest. The first quartile (Q1) marks the point below which 25% of homes fall; the median (Q2) splits the group in half; and the third quartile (Q3) is where 75% of homes are cheaper and 25% are pricier. This simple tool reveals the shape of the market, not just the average.

• Q1 (Lower Quartile): 25% of values fall below this point.
• Q2 (Median): The halfway mark—50% below, 50% above.
• Q3 (Upper Quartile): 75% of values fall below, 25% above.

Why does this matter? Because averages can be skewed by outliers. Quartiles give a truer snapshot—whether you’re sizing up investment returns, comparing school performance, or analysing wage growth.

How Quartiles Shape Financial Analysis in 2025 Australia

This year, the Australian Bureau of Statistics (ABS) and the Australian Prudential Regulation Authority (APRA) both began reporting more data in quartiles, not just averages. Why? Because quartiles expose the hidden details. For example:

• Superannuation Balances: The median super balance for Australians aged 55-64 in 2025 is around $210,000, but the third quartile is closer to $400,000. That’s a massive gap, showing most people have much less than the top quarter.
• Home Loan Sizes: APRA now publishes quarterly quartile data, showing that while the median new mortgage in Sydney is $820,000, the top quartile exceeds $1.3 million. This informs lenders and buyers about risk and affordability.
• Wage Growth: With wage inequality in focus following the Fair Work Commission’s 2025 minimum wage ruling, quartile analysis highlights that while average wages rose 3.6%, the bottom quartile saw just 2.1% growth—fuel for policy debate.

Quartiles help Australians cut through the noise, whether you’re negotiating a pay rise or deciding if you can afford that house in the inner west.

Practical Ways to Use Quartiles in Your Financial Life

So, how can you use quartiles to your advantage?

1. Comparing Investment Performance: Super funds, ETFs, and managed funds often report returns in quartiles. If your fund is in the top quartile, it’s beating 75% of its peers. But if it’s in the bottom, it’s time to investigate alternatives.
2. Budgeting and Benchmarking: Use quartile data to benchmark your household expenses or income. If your spending falls in the upper quartile, it could signal overspending compared to similar households.
3. Property Market Decisions: Real estate portals now let you sort listings by quartiles—helpful if you want to buy in the lower quartile for affordability or target the upper quartile for premium returns.
4. Salary Negotiations: In 2025, more job sites like SEEK and LinkedIn Australia offer salary quartile breakdowns by industry and region. If you’re paid below the median or Q1, you’ll know it’s time for a chat with your boss.

Quartiles also come in handy for understanding government benefits, with Centrelink now referencing income quartiles in some eligibility criteria for family tax benefits and rent assistance.

2025 Policy Updates: Quartiles at the Heart of Reform

This year, the federal government’s Housing Australia Future Fund and new Stage 3 tax reforms both use quartile analysis to measure impact. The ATO’s tax gap reporting, for instance, now highlights how the top income quartile benefits most from certain offsets, sparking debate about fairness and reform.

Meanwhile, climate finance policies—like the Clean Energy Finance Corporation’s 2025 solar loans—also use quartiles to identify which households can access the most competitive rates or are most at risk of energy poverty.

Conclusion: Make Quartiles Your Financial Edge

Whether you’re investing, buying property, or advocating for fairer policies, quartiles give you the edge to see beyond averages and make smarter choices. In 2025, with data everywhere and inequality in the spotlight, mastering quartiles is a must for every savvy Australian.