In recent times, the cost of living has surged to unprecedented levels, impacting various aspects of daily life. Australians are feeling the pressure as they navigate the challenges posed by high immigration, inflation and the rising costs of essentials.
Rent, mortgages, food, petrol, healthcare, electricity, and schooling are adding up fast. The alarming rise in expenses has led to an increase in homelessness among employed individuals, highlighting the severity of the crisis.
- Income Tax: Australians faced the world’s biggest income tax rate increase last year, with a rise of 7.6%. This substantial hike has strained household budgets further.
- Mortgage Repayments: A family with a $750,000 mortgage is now paying $24,000 more annually on their repayments. Homeowners are grappling with these escalating costs, with 38% finding it difficult to cover their home loans.
- Utility Bills: Electricity and gas costs have soared by 18% and 25% respectively, placing additional burdens on families.
- Housing Costs: Housing expenses have risen by 12%, with renters experiencing their highest increases since 2009.
- Healthcare: A staggering 36% of people have skipped medical appointments in the past year because they couldn’t afford treatment.
- Credit Card Debt: Almost half (45.8%) of the total credit card balances are accumulating interest, adding to financial stress.
- Food Prices: Food costs have surged by 12%, with households now spending over $9,900 annually at the supermarket.
- Insurance: Insurance costs have jumped by 26%.
- Inflation: Labor’s economic mismanagement saw inflation rise sharply by 1% from January to March this year, leading to higher interest rates.
*Statistics from Ninenews.com.au, 26 April 2024, Finder.com.au Cost of Living Pressure Gauge. Australian Bureau of Statistics, Quarterly Report March 2024 & News.com.au, 16 April 2024.
These statistics paint a grim picture of the financial hardships many Australians are facing. The need to understand how people are coping with these challenges is more pressing than ever.
