Just a year ago, Australia’s economy was on its knees again with the promise of growth, jobs and higher wages. On paper, that’s enough to trigger a national sigh of relief.
But not everything that glitters is gold.
An alarming number of housekeepers will not be able to make ends meet anytime soon.
The dream of owning a home remains elusive, saving has taken a bad blow, winter electricity bills are biting and gasoline – now that most are out of lockdown – is a noticeable cost again.
The pain can also be felt among small business owners, especially in view of the lack of support from the JobKeeper wage subsidy, which expired in March.
An analysis by CreditorWatch has shown that the number of external administrations of companies has increased by 24 percent and the number of defaults by nine percent in the last three months.
“We’ve been saying for some time that we can’t get a true picture of the country’s economic health until the federal government’s stimulus measures like JobKeeper have ended and their effects have ceased to artificially prop up some companies. “Said Patrick Coghlan, CEO of CreditorWatch.
“Early signs … suggest that there will be a cleanup of underperforming companies over the next two quarters.”
With an additional three percent increase in May, property prices in Sydney have soared 9.3 percent in the quarter, according to the latest CoreLogic data, and are out of reach for a whole new class of buyers.
Brisbane saw a two percent increase for the month, Melbourne 1.8 percent, Adelaide 1.9, Perth 1.1 and Hobart a whopping 3.2 percent.
Even many who have been called to the rental market have it all.
Last month’s Anglicare Rental Affordability Snapshot found just 1.16 percent (859) of 74,000 nationwide private listings for a minimum wage earner.
Still fewer were affordable old-age (386) and disability (236) pensions, while only three covered a person’s budget on JobSeeker.
The story goes on
For those who manage to top up the rent, this can come at the expense of their nest egg.
Comparison Finder’s latest Consumer Sentiment Tracker shows that Australians averaged $ 29,369 in savings in May 2021, up from $ 36,416 in April.
Finder’s RBA Cash Rate Survey shows that 27 out of 40 experts agree that consumer saving will continue to decline in the next quarter as consumer spending returns to normal.
A survey of 1,000 households in May found that 85 percent of them will take targeted measures this winter to save energy costs.
Turning off lights (56 percent), wearing extra clothing (49 percent), turning off unused devices (48 percent) and only heating rooms that are in use (40 percent) were the four most popular tactics.
The petrol stress is also increasing.
In June, the percentage of motorists who said fuel bills was among the most stressful of spending hit 14 percent, its highest level since March 2020 before the pandemic.
A separate study by the Compare Club suggests that 80 percent of Australians cut their spending to cover bills. Half will likely avoid going out to dinner, while 35 percent will put off paying debts or saving.
