‘Bleak' sum Aussies left with after expenses
Findings recorded by not-for-profit body Anglicare in its 2025 Cost of Living Index found that since 2023, a worker on the minimum wage would have $24 less left over after paying for basic expenses, largely reflecting the 'major increases in asking rents'.
The situation was even more startling for single parents looking after a child.
The report states that they would have just $1 left over for bills and discretionary expenses, even with social supports like the Family Tax Benefit and the Commonwealth Rent Assistance, which would beef-up their budget by $227.
Anglicare Australia executive director Kasy Chambers said the results of the Cost of Living Index were 'bleak,' and said low-earning Australians were struggling to put money away for bills.
Her comments highlight findings from Anglicare which 331,750 Australians have accrued more than $300m in energy debt.
The number of households with unpaid electricity and gas bills totalling over $3000 had also surged by 11.8 per cent year-on-year.
'After paying for the basics, minimum wage workers are left with almost nothing. In many cases, there's no money left for energy bills at all,' she said.
'We're seeing more people trapped in energy debt. They are skipping meals, going without heating, and falling behind on bills they'll never be able to repay.' Single parents with kids would have just $1 left over for bills and discretionary expenses, even with social supports. NewsWire/ Nicholas Eagar Credit: NewsWire
The report noted that despite hardship programs offered by retailers, the system needed 'structural reform,' with struggling households unable to 'pay what they do not have'.
Ms Chambers said low-earning Aussies were being 'forced into payment plans they can't sustain,' and called on the government to provide new energy debt relief for people in hardship.
'People are forced into payment plans they can't sustain. They carry energy debt from one bill to the next with no chance of catching up, even though energy retailers are making record profits,' she said.
'Energy is not a luxury. It is essential to running a household, staying healthy, and living with dignity. It's time to rein in profiteering and make sure no one is left in the dark.' Substantial increases in rent were a key reason for the reduced amount of disposable income for low paid workers. NewsWire / Andrew Henshaw Credit: News Corp Australia
The report also made a series of recommendations targeting the escalating grocery costs, rent increases and increasing support for households in energy debt.
Among them include expanding home energy upgrades like rooftop solar and batteries, or insulating to provide long-term support, Commonwealth pressure on states and territories to introduce caps on rental increases, a commitment to boosting social and affordable housing by 25,000 homes a year, and rules on manning excessive pricing by supermarket giants.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
3 hours ago
- Sydney Morning Herald
The investment you need to teach your kids about
It's often said that parents can help their children get an early understanding of investing by buying shares that they can track to gain an appreciation of wealth creation and the basics of the sharemarket. It's part of the same school of thought that encourages parents or grandparents to invest in cash accounts on behalf of children to give them a head start in life plus some early money lessons. But bonds are another potential investment alternative for children – and today they are much more accessible to the average population. In essence, bonds offer the potential for higher returns compared with cash. Credit: Dionne Gain The global bond market is, in fact, 22 per cent bigger than global sharemarkets. Its importance in diversified portfolios is highlighted by the fact that big super funds hold large allocations to bonds in most of their investment options. What makes these investments appealing to investors, and how can they contribute to establishing a robust financial future for young Australians? In essence, bonds offer the potential for higher returns compared with cash while generally presenting lower risk than equities. Examples include government, treasury, corporate, and municipal bonds. A government bond, for example, might raise money to fund projects or to build infrastructure. A corporate bond is instead issued by a company and the money used to help fund initiatives that will develop its business. An investor in a bond essentially lends their money to the issuer to complete these activities and receives the interest payment – or 'coupon' – for doing so. The asset class essentially aims to provide predictable income without too many ups and downs in capital value. This may make it a suitable long-term holding for the type of activities that resonate with parents and children – such as funding education, first-home deposits, gap years, holidays or just building savings from a child's own efforts. Bonds, with their slow and steady growth, help instil the importance of patience and the rewards of disciplined investing. Importantly for younger Australians, investing in bonds provides an excellent opportunity for parents to teach their children smart money lessons such as the value of consistency and the benefits of a long-term mindset. Bonds, with their slow and steady growth, help instil the importance of patience and the rewards of disciplined investing. What's more, this hands-on experience with bonds can boost a child's financial confidence and provide the perfect springboard for understanding more complex investments down the track. It's a much gentler – and safer – introduction to the financial world than the often wild ride of cryptocurrencies or speculative stocks. Of course, no investment is risk-free. Rising interest rates, inflation and the potential for issuers to default on payments to investors are among the biggest risks in fixed income.
The Age
3 hours ago
- The Age
The investment you need to teach your kids about
It's often said that parents can help their children get an early understanding of investing by buying shares that they can track to gain an appreciation of wealth creation and the basics of the sharemarket. It's part of the same school of thought that encourages parents or grandparents to invest in cash accounts on behalf of children to give them a head start in life plus some early money lessons. But bonds are another potential investment alternative for children – and today they are much more accessible to the average population. In essence, bonds offer the potential for higher returns compared with cash. Credit: Dionne Gain The global bond market is, in fact, 22 per cent bigger than global sharemarkets. Its importance in diversified portfolios is highlighted by the fact that big super funds hold large allocations to bonds in most of their investment options. What makes these investments appealing to investors, and how can they contribute to establishing a robust financial future for young Australians? In essence, bonds offer the potential for higher returns compared with cash while generally presenting lower risk than equities. Examples include government, treasury, corporate, and municipal bonds. A government bond, for example, might raise money to fund projects or to build infrastructure. A corporate bond is instead issued by a company and the money used to help fund initiatives that will develop its business. An investor in a bond essentially lends their money to the issuer to complete these activities and receives the interest payment – or 'coupon' – for doing so. The asset class essentially aims to provide predictable income without too many ups and downs in capital value. This may make it a suitable long-term holding for the type of activities that resonate with parents and children – such as funding education, first-home deposits, gap years, holidays or just building savings from a child's own efforts. Bonds, with their slow and steady growth, help instil the importance of patience and the rewards of disciplined investing. Importantly for younger Australians, investing in bonds provides an excellent opportunity for parents to teach their children smart money lessons such as the value of consistency and the benefits of a long-term mindset. Bonds, with their slow and steady growth, help instil the importance of patience and the rewards of disciplined investing. What's more, this hands-on experience with bonds can boost a child's financial confidence and provide the perfect springboard for understanding more complex investments down the track. It's a much gentler – and safer – introduction to the financial world than the often wild ride of cryptocurrencies or speculative stocks. Of course, no investment is risk-free. Rising interest rates, inflation and the potential for issuers to default on payments to investors are among the biggest risks in fixed income.
Perth Now
3 hours ago
- Perth Now
Hidden cost set to slash inheritance hopes
Younger Australians are over-estimating their inheritance as cost-of-living and stagnant wages means they need more than older Australians will be able to give them. New data released by Colonial First State shows Australians aged between 18 and 29 expect to inherit a whopping $525,000 on average, when the family home and leftover super is factored in. These high expectations come as younger Australians look to the older generations to help secure their financial future. Young Australians are expecting $525k in inheritance. NewsWire / Nicholas Eagar Credit: NewsWire But a combination of rising aged care costs, changing government regulations in the space and the sheer longevity of older people means this optimism around how much they will inherit is 'misplaced.' CFS head of technical services Craig Day warned these high inheritance expectations will come 'under pressure'. 'When you think about what older Australians are staring down the barrel of including longevity and rising aged care cost, this ($525,000) expectation is going to come under a lot of pressure,' he told NewsWire. 'A lot of the assets that are earmarked to be paid out as an inheritance may in the future be needed elsewhere.' CFS says most older Australians intend to leave something behind, but many underestimate just how much they will have left. The family home, vehicles and any remaining superannuation top the list to be passed down to the kids, but investment portfolios and other property have largely been earmarked for retirement income. CFS chief executive of superannuation Kelly Power said young Australians also need the money. 'Young people are increasingly relying on the wealth of their parents or grandparents due to rising living costs, stagnant wage growth and housing pressures,' she said. 'At the same time, older generations are navigating the complexities of retirement planning. 'They want to support their families while ensuring their own financial security. Australians are urged to chat with family to align on inheritance. Christian Gilles / NewsWire Credit: News Corp Australia Mr Day urged older and younger Australians to openly talk about their financial futures. 'It's important that young and old can discuss their expectations and plans openly. By having these conversations early, families can ensure that everyone is on the same page and can make informed decisions that align with their values and goals,' he said. 'It's why we're saying it's really important for families to have these conversations so they don't get to the point where it's oh bugger, I was expecting this much to pay off my mortgage before I started saving for my retirement but there's not much left.' Mr Day also said younger Australians should look at their retirement needs as early as possible, even though 'the realities of life' including cost of living pressures can make it harder to think long-term. 'It's never too early to start planning for retirement,' he said. 'The sooner you plan, the easier it becomes because you get the benefit of that compounding big snowball rolling and it helps you achieve your objectives sooner.'
