Cost-of-living pressures are affecting more than half of Australian families as relief measures from Labor’s last Federal Budget continue to lose household support.
This also comes as Labor’s cost of living measures begin to be rolled out in September—a measure that will cost the federal government $4.7 billion (US$2.99 billion).
The report found that “cost-of-living and personal debt” was the highest causes of distress in the September quarter (46 percent), a significant increase from the previous quarter (40 percent) and from the same time last year (40 percent).
The report also found that households with children under the age of 18 were two times more likely to call a suicide prevention service for help (14 percent) after some of the highest rates of mental health diagnoses and suicidal behaviours were reported in the past 12 months.
Of the more than 1000 Australians surveyed, 28 percent with children found housing access and affordability the second concern after the cost of living and personal debt, followed by social isolation, loneliness, and family and relationship breakdowns.
“Feeding the family and keeping a roof over our heads are two of the most basic human needs,” said Nieves Murray, CEO of Suicide Prevention Australia, on Sept. 7. “While interest rates are a matter for the RBA Board, we must be prepared and proactive to prevent distress and suicide rates from continuing to rise.”
Ms. Murray has also urged Australians experiencing difficulty with their mental health to seek help.
Federal Government’s Relief Measures Will Not Ease Cost of Living Pressures
More than half (54 percent) of Australians surveyed said that the federal government’s relief measures will not ease cost-of-living pressures, compared to 31 percent who say the measures will improve their living situation.Additionally, a quarter believe the relief measures will leave them worse off.
Single parenting payments will also increase to an additional $176.90 per fortnight for single parents with children aged up to 14.
Meanwhile, the maximum rate for Commonwealth rent assistance will increase by 15 percent, assisting over 1.1 million Australian households.
Australians with chronic health conditions will also be able to access two months’ worth of medications.
Federal Treasurer Jim Chalmers said the measures were “what people need when they need it most.”
“Whether it’s cheaper medicines, more support to pay the bills, or a bit of help to pay the rent, these policies and programs are targeted to take the pressure off while times are toughest,” Mr. Chalmers said.
“We know that people are under significant pressure, which is why the Government’s number-one priority is to roll out billions of dollars in cost-of-living relief to take some of the edge off these inflationary pressures without making them worse.
Living Costs Equal or Higher than CPI: ABS
An August report by the ABS found that living costs for employee households rose 1.5 percent in the June 2023 quarter.“All household types saw rises in living costs equal to or higher than the consumer price index,” said Michelle Marquardt, ABS head of prices statistics.
“The impact of price changes on household budgets varies between household types with their different spending patterns.”
The highest living costs applied to household workers, who experienced an annual increase of 9.6 percent.
“The rise in annual living costs for employee households is the largest increase since this series started in 1999. The last time the CPI recorded an annual increase of 9.6 percent was in 1986,” Ms. Marquardt said.
Additionally, higher food and utility prices contributed to increased living costs for all household types over the past 12 months.
“Annually, food prices rose between seven and eight percent, driven by rises for meals out and takeaway foods, and fruit and vegetables. Utilities prices rose between 12 percent and 14 percent, driven by higher wholesale prices for gas and electricity being passed on to consumers,” Ms. Marquardt said.
Employee households were most impacted by rising mortgage interest charges, which form a large component of their budget compared to other household types, such as renters.
“Mortgage interest charges rose 91.6 percent over the year. This was up from a 78.9 percent annual rise in the March 2023 quarter, reflecting the impact of the Reserve Bank of Australia’s cash rate rises, and the rollover of some expired fixed-rate mortgages to higher rate variable mortgages.”
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