Invest
6.5 million Australians cut spending in anticipation of government support expiring
Invest
6.5 million Australians cut spending in anticipation of government support expiring
Millions of Australians are cutting back on spending in preparation for the easing of government and banking support, new research has revealed.
6.5 million Australians cut spending in anticipation of government support expiring
Millions of Australians are cutting back on spending in preparation for the easing of government and banking support, new research has revealed.
A Canstar survey of 1,024 people revealed that one-third (33 per cent) – the equivalent of 6.5 million Aussie adults – have told Canstar that they have changed their spending habits in anticipation of when some mortgage repayment pauses, early access to superannuation, and JobSeeker and JobKeeper income support were expected to cease.
Steve Mickenbecker, finance expert at Canstar, believes the government’s extension of JobKeeper, JobSeeker and the early access to superannuation may help the financial burden of some in the short term, but there is still an end date to these policies that consumers are preparing for.
“The extension of government income support that was due to expire in September provides some relief for households, but Aussies need to be aware the payments are less and there is still an expiry date,” said Mr Mickenbecker.
“Hopefully, a further six months of JobKeeper is enough to save more jobs. But for some households, this will just be a reprieve, and they should use this time to improve the resilience of their budget.”
According to Canstar’s results, younger Australians are more likely to tighten their purse strings.
Forty-five per cent of Millennials are cutting back spending, while a further 38 per cent of Gen Z consumers are spending less.
“Young people working in the hospitality and tourism industry have been some of the hardest hit during the coronavirus pandemic, with no choice but to cut spending,” Mr Mickenbecker explained.
“Regardless of your age or occupation, the same rules apply to all. If you’ve taken a financial hit in recent months, then now’s the time to take action and be frugal with your money.
Where to make possible savings
Mr Mickenbecker has explained a few tricks to help Australians save money.
- For a Sydney household, switching from the average cost of a monthly electricity bill ($112) to the lowest ($90) could mean a monthly saving of $22 or annual savings of $264.
- For a driver in NSW, switching from the average monthly car insurance premium ($114) to the lowest ($69) could mean a monthly saving of $45 or annual savings of $540.
- For a family with a Gold tier health insurance policy, switching from the average priced policy ($342) to the lowest priced policy ($235) with the same level of cover could mean monthly savings of $107 or annual savings of $1,284.
About the author
About the author
Spending
Where can you travel in 2021?
As part of the road to recovery, Qantas has announced domestic and international destinations that Australians can travel to as early as 2021. ...Read more
Spending
How COVID stole Christmas
Australians are lowering their expectations for the upcoming festive season, with lower spending, socialising and travelling predicted, a research company has found. ...Read more
Spending
Why 4 in 10 households can’t afford essential items
Almost 40 per cent of tenants' households can’t afford essential items including bills, clothing, transport and food after they are paying rent due to falls in income caused by the COVID-19 pandemic...Read more
Spending
Gamblers double down on pandemic punt
Despite governments limiting access to venues, as well as sports around the world going into lockdown, Australians are gambling significantly more money, official figures show. ...Read more
Spending
How much should you pay to visit the GP?
Australians visiting their local GP are willing to pay more for a longer consultation time or a shorter waiting time, according to new research. ...Read more
Spending
Ticket provider pays $7m for misleading consumers
A leading ticket provider has been ordered to pay $7 million after making misleading or false claims about reselling tickets. ...Read more
Spending
The recession that stole Christmas
Australians are tipped to have a very different Christmas this year, with the COVID-19 economic downturn changing celebrations this holiday season. ...Read more
Spending
Australians more proactive about their financial future
Australians are using the COVID-19 period to become more proactive about their money, new research has revealed. ...Read more
Spending
Where can you travel in 2021?
As part of the road to recovery, Qantas has announced domestic and international destinations that Australians can travel to as early as 2021. ...Read more
Spending
How COVID stole Christmas
Australians are lowering their expectations for the upcoming festive season, with lower spending, socialising and travelling predicted, a research company has found. ...Read more
Spending
Why 4 in 10 households can’t afford essential items
Almost 40 per cent of tenants' households can’t afford essential items including bills, clothing, transport and food after they are paying rent due to falls in income caused by the COVID-19 pandemic...Read more
Spending
Gamblers double down on pandemic punt
Despite governments limiting access to venues, as well as sports around the world going into lockdown, Australians are gambling significantly more money, official figures show. ...Read more
Spending
How much should you pay to visit the GP?
Australians visiting their local GP are willing to pay more for a longer consultation time or a shorter waiting time, according to new research. ...Read more
Spending
Ticket provider pays $7m for misleading consumers
A leading ticket provider has been ordered to pay $7 million after making misleading or false claims about reselling tickets. ...Read more
Spending
The recession that stole Christmas
Australians are tipped to have a very different Christmas this year, with the COVID-19 economic downturn changing celebrations this holiday season. ...Read more
Spending
Australians more proactive about their financial future
Australians are using the COVID-19 period to become more proactive about their money, new research has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
