5.4 Million Aussies Worried About How to Put Food on Table This Christmas

The best holiday traditions revolve around children; get them involved in crafting and channel their boundless energy into creative outlets. Ground Picture/Shutterstock

As the cost of living bites, the majority of Australians are worried about how they will afford Christmas this year, with 3.9 million people concerned about their children missing out on presents, according to a new survey.

It follows a challenging year that has included record-high inflation, an unprecedented eighth interest rate rise in as many months and devastating natural disasters.

In a research of the general public by the Salvation Army released on Dec. 8, over half of Australians (52 percent) are more stressed about their finances this year compared to last year, while 31 percent are more concerned about paying for Christmas expenses this year.

It revealed that 5.4 million Australians (21 percent) are worried about putting enough food on the table, and 28 percent said they would be going into debt to pay for Christmas. Further, three in 10 will struggle to pay for utilities this Christmas.

As the festive season is knocking at the door, one in four Australians are concerned about affording their rent/mortgage repayments, and 8.6 million have been significantly impacted by rising interest rates.

“The Salvation Army is experiencing a tsunami of need. As you read and hear about these dreadful statistics, we are on the frontline seeing the people behind the numbers and hearing their stories,” said The Salvation Army’s Major Bruce Harmer.

“Others are choosing to go without food and medication to ensure their children have food on the table. And the guilt and emotional toll of not being able to provide the basics for their family is the real but often hidden cost of financial hardship.”

The figures were worse among people using Salvation Army service, with 99 in every 100 Australians saying they were worried about how they will afford Christmas this year.

“These statistics clearly show the dire impact that the cost of living is having on Australians across the country,” Harmer said.

“We don’t want anyone to feel like they are alone this Christmas. We encourage anyone who needs support to reach out—there is no shame in asking for help.”

Labor Hopes IR Law Will Drive Down Cost-Of-Living Pressure

It comes after the centre-left Labor government passed its contentious industrial relations bill, which it claims will raise wages and help lower-income Australians cope with the cost of living pressures.

While unions applauded the decision, some have voiced concerns that raising wages might even increase poverty if it reduces job creation or discourages employers from hiring more staff.

Business groups are also vigorously pushing back on the bill’s multi-employer bargaining scheme, with mining giant BHP’s Australian President Geraldine Slattery warning that it will increase costs without supporting productivity, reduce the global competitiveness of Australia’s resource industry, and make no guarantee for wage growth.

“This risks unsustainable wage inflation, which would hurt the mining industry, regional communities and the national economy,” he wrote in a letter to Albanese prior to the passing of the bill, reported The Australian.

New Attempt To Control Price Through Coal Price Cap

Labor has also sought to quell swelling energy prices by imposing a temporary coal price cap as the country’s gas and coal industry saw a record surge in export earnings amid global energy shortages and elevated energy prices.

“It is not the fault of Australians our power prices are so high. The cost of production hasn’t gone up,” Energy Minister Chris Bowen said on Thursday.

However, the CEO of the Mining Council of Australia has described a proposed tax on coal miners and gas producers as “perverse.”

“It’s a very short-term fix, not sensible to put at risk our investment in Australia, our jobs in Australia and what industries are doing with communities,” Tania Constable told Sky News on Nov. 11.

“It’s not sensible for the government to put another big tax on an industry that’s been holding up the economy for quite some time.”

Economist Chris Richardson said that the soaring coal and natural gas prices mean the national budget will see a “remarkable recovery” this year, reported the Australian Financial Review.

Peter Costello, Australia’s longest-serving federal treasurer under the former Liberal Howard government, criticised both the former Coalition and current Labor government for the high levels of expenditure and debt.

“The fastest growing area of government expenditure now is interest on the debt. If you can believe it, the interest payments that we have to make on our debt are growing faster than the NDIS,” he told the ABC.

“You can get into this debt trap, where a very large proportion of your income has to go on servicing past debt.”

He noted that the idea is when the nation comes out of COVID-19, the massive pandemic stimulus will be paid back.

“But it won’t be.”

Amid rising inflation, natural disasters have also cost millions of dollars in community projects, disaster grants and other hardship packages.

In New South Wales, floods, fires, droughts and mice plagues cost the NSW government $670.7 million, almost a quarter of the regional department’s total spending, to support affected communities.

Rebecca Zhu and AAP contributed to this article.