Latest news with #disposable income
News.com.au
5 hours ago
- Business
- News.com.au
One state home to Aus most, least affordable cities
Queensland is home to both the nation's most and least affordable cities, according to a new cost of living study. Townsville in the state's far north took the title of the cheapest place to live, while the Gold Coast came in last, with Glitter Strip locals left with the least disposable income after covering everyday expenses like rent, food and power bills. Sydney – home to the nation's priciest real estate and largest population – lagged, coming in at only 8th place among Aus' least affordable cities. The Harbour City was behind Logan in Brisbane's south, known for its relatively cheap house prices and young demographic. The analysis by StandOut Resume crunched the costs of rent, utilities, public transport and groceries in the 20 biggest capital and regional cities. Those costs were then compared with the local median net income to determine where wages went the furthest. It found Townsville residents had $27,442 leftover income annually after basic living expenses, while on the Gold Coast that amount dropped to $10,127. Canberra and Geelong were the second and third worst major cities for affordability, with $14,978 and $15,166 remaining income respectively, while Rockingham, WA and Launceston were next affordable, at $26,887 and $25,664. Melbourne came in as the fifth most affordable city, with $24,078 leftover, Perth sixth ($27,171), Hobart eighth ($19,781) and Brisbane ninth ($19,724). Also among the top ten most costly were Cairns ($15,365), Darwin ($15,550), and Adelaide ($15,906). StandOut Resume director Andrew Fennell said Townsville residents benefited from a relatively high average local salary of $56,858 after tax, with just over half of that sum spent on the basics. The city also has the third lowest monthly grocery bills ($460), the fourth cheapest gas prices ($766 per year), and the fifth lowest rent ($364 per week). Gold Coasters, meanwhile, spent a whopping 79.1 per cent of their $48,447 net salary on rent, electricity, gas, internet, public transport, and food, leaving them with just $10,127 to play with. 'This metropolitan region in Queensland was named the Gold Coast due to over-inflated prices of real estate and goods in the 1950s. And it seems that the name is still just as relevant, more than half a century on,' Mr Fennell said. Gold Coast's median rent of $536 ($27,893 a year) was the second most expensive in the study after Sydney, tied with Canberra. 'Australia has the 13th highest average salary in the world. This may sound good on paper, but considering that the country also has the tenth highest cost of living, you may not find your money stretching that far in day-to-day life,' Mr Fennell said. 'The average take-home salary varies significantly across the country, but just because somewhere, like Perth or Melbourne, for example, has the most generous salaries doesn't mean you'll necessarily be better off living there.' Across the 20 cities analysed, 64.3 per cent of average net salary ($53,541) goes on basic living expenses (rent, electricity, gas, internet, and food), leaving $19,124 spare. Nationwide, the study found 43.2 per cent of the average net income was spent on rent alone ($23,105 annually, or $444 a week). TOP 10 MOST AFFORDABLE AUSTRALIAN CITIES 1. Townsville, Qld 2. Rockingham, WA 3. Launceston, Tas 4. Wollongong, NSW 5, Melbourne, Vic 6. Perth, WA 7. Ballarat, Vic 8. Hobart, Tas 9. Brisbane, Qld 10. Bendigo, Vic TOP 10 LEAST AFFORDABLE AUSTRALIAN CITIES 1. Gold Coast, Qld 2. Canberra, ACT 3. Geelong, Vic 4. Cairns, Qld 5. Darwin, NT 6. Adelaide, SA 7. Logan City, Qld 8. Sydney, NSW 9. Newcastle, NSW 10. Toowoomba, Qld
CTV News
4 days ago
- Business
- CTV News
Albertans are the best in the country at saving money: Desjardins report
As economic conditions evolve and regional pressures shift, Canadians are saving more money, but the amount depends on which province you live in, according to a new report. As economic conditions evolve and regional pressures shift, Canadians are saving more money, but the amount depends on which province they live in, according to a new report. Desjardins' latest economic viewpoint found Albertans saved nearly nine per cent of their disposable income between 2020 and 2023, the highest in Canada, and well above the national average of under four per cent. Researchers found Albertans were able to save more as they had, on average, a household disposable income of over $110,000 while affordability in the province was among the best in the country. Savings rates are also high in Saskatchewan and Quebec with levels approaching 10 per cent of disposable income in 2024. The national average disposal household income in 2024 was $100,000. 'You have Alberta close to $120,000 household disposable income and Saskatchewan is a bit above average,' Sonny Scarfone, principal economist for Desjardins told in a Monday interview. 'I would say, for these two provinces, it's a mix of high disposable income and relatively affordable housing compared to B.C. and Ontario, especially. For Quebec, it's mostly on the spending side, just in absolute terms, spending less than other provinces.' Households in Ontario and British Columbia meanwhile are navigating higher debt levels, driven by housing costs, mortgage renewals, and slower income growth, all of which may weigh on future consumption and savings. Homeowners in the relatively more affordable Quebec housing market are less vulnerable to ongoing mortgage renewals than in other provinces. That however is starting to decline, Scarfone said. 'We do see affordability declining and more of a catching up. In absolute terms, prices have been increasing for housing, although on the relative basis that remains affordable compared to B.C. and Ontario,' he said . 'We do forecast that the Quebec savings rate will remain somewhat elevated, of course, depending on the commercial tariffs outcome there.' The average national savings rate, calculated as a percent of disposable income instead of spending, is expected to increase from 3.7 per cent in 2023 to six per cent in 2024 according to data from Statistics Canada and Desjardins Economic Studies. Alberta had a savings rate of 8.8 per cent in 2023, Quebec was at 7.8 per cent and Saskatchewan was not far behind at 7.5 per cent in 2023. Prince Edward Island was at 2.8 per cent, Ontario at 1.7 per cent, British Columbia at 0.6 per cent and Newfoundland and Labrador at 0.2 per cent. New Brunswick was down -1.6 and Nova Scotia was -3.7. Canadians expected to save more Desjardins predicts Canadians across the country will continue to save for the future despite ongoing income pressures. Albertans made over $115,000, British Columbians had $110,000 and Ontarians made $105,000 in 2024. Scarfone noted households saving more leads to higher resiliency especially in uncertain times such as U.S. President Donald Trump's trade war. 'One of the reasons we're interested in looking at saving behaviour is that in terms of uncertainty, saving for a rainy day can become self fulfilling in terms of uncertainty leads to households being more prudent in their spending,' said Scarfone. 'That prudence itself contributes to lower consumption, which is reflected by lower GDP. So that behaviour is interesting in the context that we're in today, and also it does help us in our forecast in terms of forward looking at who would be more financially resilientif a slowdown was to come.' In Quebec, the average household disposable income was just under $84,000 in 2024, comparable to New Brunswick and lower than all other provinces, yet they were one of the highest savers in the country. Changes to personal income tax Researchers expect national-level household disposable income growth to accelerate in 2025 in part supported by recent federal personal income tax changes. The government recently announced a plan to reduce the personal income tax rate from 15 per cent to 14 per cent as of July 1. It will also be the rate for most federal non-refundable tax credits. Desjardins noted Quebec and Alberta households are likely to face less pressure from mortgage renewals than households in British Columbia and Ontario. Households to spend less on luxury goods While researchers anticipate an increase in savings, they also expect a broad slowdown in consumer activity in the coming quarters, with the steepest declines in spending on luxury items. Households are likely to scale back on big-ticket purchases due to the combined impact of the ongoing trade war, through higher prices and increased uncertainty, and a soft housing market.
Times
21-07-2025
- Business
- Times
UK households face cost of living squeeze as disposable income falls
British households have seen their disposable income fall by a third in the past three months as water and other bills climb alongside spending on essentials, figures from Moneysupermarket show. The comparison site's latest household money index showed that the average person had £513.75 left on average each month between April and June after covering bills and outgoings, down from £682.27 in the previous quarter. From April to June, the average Briton spent £52.14 a day to get by, the equivalent of £1,564.25 a month. Moneysupermarket's index tracks consumer spending across 31 categories, including utilities, mortgages, insurance, subscriptions and groceries. Lis Barton, chief customer officer of Mony Group, the parent company of the comparison site, said there had been 'movements up and down' across different categories of bills. 'Energy bills have eased off for many this summer, helped along by a lower price cap, milder weather and more fixed-rate deals on the table, offering a bit of breathing space in a still-volatile market. However, there are some bills that are more difficult to cut, like water and childcare costs.' While energy bills and mortgage repayments fell by 9 per cent and 11 per cent respectively, those savings were outweighed by rising costs elsewhere. Water bills rose by 11 per cent on average while the cost of broadband increased by 8 per cent to £42.70. Childcare and school costs rose by 10 per cent and health insurance jumped by 22 per cent. Gym memberships rose by 21 per cent. Essential spending caused a significant squeeze on personal finances, rising to 75 per cent of monthly income compared with 69 per cent from January to March. Official figures from the Office for National Statistics showed last week that inflation rose by 3.6 per cent in June, the highest since January last year. Food costs remained a key driver, with butter and beef prices increasing by more than 20 per cent year-on-year. Despite this squeeze, many households continued spending on non-essentials, with TV streaming up by 25 per cent, gym memberships up 21 per cent and gaming up 28 per cent. Barton, who advises switching to secure the best deal, said: 'We would definitely expect to see people prioritising essential spending over discretionary purchases over the coming months and continuing to find savings where they can.' New data from Deloitte shows that consumer confidence dropped by 2.6 percentage points in the second quarter to -10.4 per cent, the first significant fall since October 2022 when inflation hit a 41-year high of 11.1 per cent. It also marks the lowest level since the first quarter of 2024. The decline affected all six measures tracked by Deloitte's 'consumer tracker', based on responses from 3,200 UK consumers last month. Sentiment around job security recorded the sharpest fall, down by 4.8 percentage points. Confidence in job opportunities and career progression also dropped, by 3.9 points, reflecting rising employer costs and signs of a weakening labour market. Céline Fenech, consumer insight lead at Deloitte, said: 'After recovering from its lowest level on record in the third quarter of 2022, when inflation peaked to a historic high, our consumer confidence index has declined for the first time in almost three years. 'This drop in confidence signals a weakening of consumers' resilience, as concerns of a slowing labour market have left consumers worried about job security and income growth prospects, while persistent inflation and a high cost of living have negatively impacted sentiment towards personal debt,' she added. 'However, we have seen how the mood of the consumer can change and adapt to new circumstances. If an uptick in both economic growth and business sentiment reduces pressures on the job market and on earnings, a return to positive confidence could still be on the cards.'
The Sun
20-07-2025
- Business
- The Sun
How rich are YOUR neighbours? Disposable income in cities across Britain revealed
THE UK cities with the highest disposable income have been revealed. Residents in Belfast have the highest level of disposable income compared to any other British city, according to new figures from MoneySuperMarket's Household Money Index (HMI). The quarterly report tracks how much people in the UK spend on various bills and everyday expenses. Dwellers in the Northern Irish city have a total of £923.28 left over every month after bills, spending 57.9% of their wages on wifi, rent and other costs. The average resident spends £1343.47 per month on outgoings, which is one of the lowest compared to other UK cities. The figure is a whopping £884.74 more than what locals in Plymouth have to live on after other outgoings are paid. Residents in the port city spend 93.5% of their wages on bills, leaving £117.54 left over at the end of the month. And plenty of other residents in the UK cities also have little to spend after shelling out on their mortgage and other bills. In Nottingham, the average household has just £175.53 worth of disposable income to play with every month after spending £1313.72 on bills. Meanwhile, in Birmingham residents have just £268.39 left over after paying £1728.36 on utilities. And the figures show that earnings after tax also varies greatly from city to city. Londoners take home an average of £30,930 every year after tax, which is a whopping £13,059 more than the average Nottingham resident. Household Support Fund But people in the capital are often paid more due to a combination of factors including a higher cost of living and concentration of high-paying jobs. For example, the average rent in London for June 2025 was £2,252, according to new figures from the ONS. This is compared to Nottingham where renters paid £982 in June. Household bills rise But regardless of location the average Brit is being asked to pay more. Figures show the average household spend on essential bills and everyday outgoings has jumped by £38.95 per month from May 2024 to July 2025. Furthermore, disposable income fell by 33% from April to July 2025. The average person has just £513.75 left at the end of each month after their bills and outgoings. It comes despite the spending on energy falling by 9%, from £110.20 a month to £100.20, as Ofgem's new energy price cap came into force. Mortgage costs have also reduced as the market pins its hopes on a base rate cut in August. But many of these dips have been offset by other rising household costs such as childcare and water bills. Childcare and school costs have risen by 10%, while water bills have risen by 11% on average. Back in April, the average annual water and wastewater bill increased by £123, taking it from £480 to £603. Lis Barton, chief customer officer of MONY Group - the parent company of MoneySuperMarket - said checking you're getting the "best deal on essential household bills could soon add up to savings". She explained: " Energy bills have eased off for many this summer, helped along by a lower price cap, milder weather, and more fixed-rate deals on the table - offering a bit of breathing space in a still-volatile market. "However, there are some bills that are more difficult to cut, like water and childcare costs." How to cut your bills IF you're struggling financially, you might be able to cut the cost of your bills to help you get out of the red. Council tax: You can apply for a council tax reduction on the website but you'll need to meet certain criteria. Your bill could be cut by as much as 100 per cent if you're on a low income or claim benefits. Carers who look after someone in the household for at least 35 hours a week are also exempt from paying. Water: Households might be able to save money by getting a water meter but it all depends on how much you're using. To check if it's finacially worthwhile, use the Consumer Council for Water's free ater meter calculator. Rent: If you have the space available and your landlord or local authority says it's ok to do so, you might want to consider getting a flatmate. Not only will you split the cost of the rent, but also the other bills. Hire purchase: If you're struggling to make your repayments on your hire purchase, you can usually end the contract by returning the goods. You will have to pay all the instalments due up to the time you end the agreement but this will limit the amount you owe. Contact Citizens Advice for free for more help with this. Gas and electricty: MoneySavingExpert says families can save £330 on average by switching from Standard Variable Tariffs (SVTs) to a better rate. Use a comparison site such as MoneySuperMarket or Energyhelpline to see what deals are available. Mortgage: If you get into debt with your mortgage payments, don't wait for your lender to chase you. Work out what you can afford using the Citizens Advice budgeting tool so you can discuss your payment options moving forward with your mortgage provider. Secured Loan: Your secured loan might be covered by the Consumer Credit Act and if it is, you may be able to apply for a Time Order. This is a special agreement by the courts allowing you more time to make payments. Secured loans not covered by the Consumer Credit Act include gas, electricity or water meters, payments that need to be written off in full, mortgages, credit union loans, loans from an employer and some short term trade agreements. County Court Judgements: If you receive a County Court claim form talk to a free debt advice service straight away. This includes Citizens Advice (0808 800 9060), StepChange (0800 138 1111) and the National Debtline (0808 808 4000). TV licence: Some households are eligible for a reduced fee or free TV Licence. Check here to see if you are entitled to a reduced or free rate.
