Earn
7.5m Aussies struggle to pay bills
Aussies are struggling with their bills with no way out in the unfortunate event of a personal crisis, a new report has revealed.
7.5m Aussies struggle to pay bills
Aussies are struggling with their bills with no way out in the unfortunate event of a personal crisis, a new report has revealed.
According to research from Deloitte Access Economics and Compare the Market, nearly 7.5 million Australians now concede they are struggling to pay their bills, are not saving money regularly and do not feel like they have job security.
It’s around 2 million more people than indicated they were in a similar position last year.
Commenting on the figure, Compare the Market’s banking expert, Rod Attrill, said: “It’s clear that the personal financial circumstances have worsened for a significant number of Australians — these figures can’t be ignored.”
The research also found just 56 per cent of Australians are saving the recommended 10 per cent of their income, but this is an increase of 128,000 people compared with last year’s results.
A further 5.1 million people — just under half a million more than last year — are spending more than they earn or are saving nothing.
According to the report, Aussies are citing the growing cost of living and low incomes as the major reasons for their financial difficulties.
Among those who struggle to pay their bills, 60 per cent blame increases in the cost of living such as food and power prices, 61 per cent say they are not earning enough to cover their bills and 31 per cent blame the little to no wage growth they have received from work as a factor.
Without savings, most people would not survive on their own if they suddenly found themselves without an income, the report highlighted, with 13.4 million conceding they do not have an emergency fund to fall back on.
As a result, 7.3 million Australians would go on government benefits such as Newstart or Centrelink and 4.3 million would rely on financial assistance from family and friends.
“It’s an even greater concern that the number one ‘plan’ for Aussies struggling to keep their head above water when it comes to money matters is to rely on government support and benefits,” Mr Attrill said.
Alongside the current push for increases to the Newstart allowance, this should signal a big red flag for the federal government as more and more consumers continue to rely heavily on the help of others, the report said.
About the author
About the author
Salary
Despite losing top spot, Elon Musk rakes in $400,000 hourly
Elon Musk, the entrepreneur known for his involvement in a wide range of innovative and technological businesses, has recently been dethroned as the wealthiest individual in the world, with Bernard ...Read more
Salary
Rising unemployment and skill shortages prompt Australian businesses to look globally for talent
Australia has witnessed its unemployment rate surging above 4% for the first time in two years, revealed by the latest Labour Force data. Read more
Salary
New findings link job mobility hurdles to stagnant wage growth
Recent research from the e61 Institute has unearthed significant links between slow wage growth in Australia and obstacles to job mobility, including non-compete clauses, complicated occupational ...Read more
Salary
Employers scrambling to prevent workplace brain drain
As workplace managers face a swiftly evolving employment market that’s increasingly favouring the demands of white-collar employees and jobseekers, bosses are falling under mounting pressure to ...Read more
Salary
Unions back Albanese’s pledge to close gender pay gap
An electoral promise from Labor to make gender pay equity an objective of the Fair Work Act has been hailed as a “watershed moment” from industry peak bodies who have traditionally advocated for ...Read more
Salary
Coles asked to disprove $115m in alleged wage theft
One of Australia’s biggest supermarkets faces allegations that it underpaid more than 7,500 employees a total of $115 million. Read more
Salary
Gen Z left behind in progress to gender equality
Women under 25 may emerge from the pandemic in a worse financial position than when it began, new research has shown. Read more
Salary
Show me the money: I deserve a COVID recognition payment, and so do you
Staff are currently in high demand. But they’re also mostly overworked, overtired, underplayed and underpaid. Read more
Salary
Despite losing top spot, Elon Musk rakes in $400,000 hourly
Elon Musk, the entrepreneur known for his involvement in a wide range of innovative and technological businesses, has recently been dethroned as the wealthiest individual in the world, with Bernard ...Read more
Salary
Rising unemployment and skill shortages prompt Australian businesses to look globally for talent
Australia has witnessed its unemployment rate surging above 4% for the first time in two years, revealed by the latest Labour Force data. Read more
Salary
New findings link job mobility hurdles to stagnant wage growth
Recent research from the e61 Institute has unearthed significant links between slow wage growth in Australia and obstacles to job mobility, including non-compete clauses, complicated occupational ...Read more
Salary
Employers scrambling to prevent workplace brain drain
As workplace managers face a swiftly evolving employment market that’s increasingly favouring the demands of white-collar employees and jobseekers, bosses are falling under mounting pressure to ...Read more
Salary
Unions back Albanese’s pledge to close gender pay gap
An electoral promise from Labor to make gender pay equity an objective of the Fair Work Act has been hailed as a “watershed moment” from industry peak bodies who have traditionally advocated for ...Read more
Salary
Coles asked to disprove $115m in alleged wage theft
One of Australia’s biggest supermarkets faces allegations that it underpaid more than 7,500 employees a total of $115 million. Read more
Salary
Gen Z left behind in progress to gender equality
Women under 25 may emerge from the pandemic in a worse financial position than when it began, new research has shown. Read more
Salary
Show me the money: I deserve a COVID recognition payment, and so do you
Staff are currently in high demand. But they’re also mostly overworked, overtired, underplayed and underpaid. Read more