Gina Rinehart tops Rich List in pandemic shakeout

Surging iron ore prices and a tech sector that has thrived during the coronavirus shock have led to a dramatic shakeout at the top of the Financial Review Rich List, dropping former number one Anthony Pratt out of a top five that is now as wealthy as the next 15 people combined.

A look at the top 20 reveals Gina Rinehart's fortune has leapt a staggering 53 per cent to $21.2 billion, making her Australia's wealthiest person in the immediate aftermath of the worst market turmoil since the global financial crisis. The worldwide lockdown and resulting work-at-home revolution have pushed software developers Mike Cannon-Brookes and Scott Farquhar into the top three with fortunes above $18 billion.

Property billionaires have not done so well, however, as rents tumble and vendors discount to sell. Harry Triguboff, John Gandel and Lang Walker have all had their pre-crisis valuations reduced, although a resilient China has led to a remarkable boost in wealth for the Hong Kong-based owner of Shimao Property, Hui Wing Mau. Shimao's rising share price has the Australian citizen retaining fourth place on the Rich List with $17.8 billion.

It’s the first time since 2015 that Rinehart has topped the Rich List, which AFR Weekend has published on Friday in a truncated ‘‘Top 20’’ format. The full list of the 200 wealthiest Australians was, for the first time in its 38-year history, postponed – until the fourth quarter of 2020 – owing to tumultuous markets caused by the pandemic.

The market volatility has settled down a little allowing AFR Weekend to assess the COVID-19's effect on the nation's 20 wealthiest individuals.

The Top 20 have enjoyed a cumulative increase in wealth over the past year from $143 billion to $189 billion, a 32 per cent bump at a time of wage stagnation for most workers.

Iron ore boost

Just as at the start of the last decade, the iron ore price is doing the most to fuel fortunes. For the nation’s three biggest iron ore barons – Rinehart, Andrew Forrest and Clive Palmer – strong demand from Chinese steelmakers, coupled with production woes for major competitor Brazil, have enhanced their wealth.