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SBS Australia
2 days ago
- Business
- SBS Australia
Is Australia's cost of living crisis really becoming a 'thing of the past'?
There are signs the cost of living crisis affecting Australians during years of high inflation could be easing, analysts say, but some charity groups warn rising wealth inequality mean the pain is not lessening for everyone. Deputy director of the Anglicare charity Maiy Azize told SBS News: "It's really frustrating" for people to hear speculation on whether the cost of living crisis is over, because millions of Australians are still struggling to afford essentials. "We've had years of big price increases for things like food, things like fuel. Electricity has never been more expensive. Energy debts are really high, and of course rents have never been higher," she said. Anglicare has not seen any measurable drop off in people requiring its charity services, she said. "We're definitely not seeing any kind of slow down in the number of people who are coming to us for things like emergency relief, for things like bill assistance, financial counselling, that's certainly not improving, she said." "I think when people hear things like, 'oh, the cost of living is getting better', they might think that actual relief is in sight and things might be getting a bit cheaper. But in reality things aren't getting cheaper for them. They don't need our help any less." Household spending ticks up Investment research company Morningstar published a report this month telling retail investors the cost of living crisis would become a "thing of the past", as people start to spend more on non-essential items. Commonwealth Bank analysis shows household spending rose for a third consecutive month in June, up 0.3 per cent following gains of 0.4 per cent in April and May. "Household spending is starting to show signs of consistency month-on-month and should continue to pick up this year as consumers begin to loosen their purse strings," the bank's senior economist Belinda Allen said in a statement earlier this month. "This recovery is taking longer than expected to occur, but there are green shoots emerging." Many had expected the bank to lower the cash rate in line with inflation — the Consumer Price Index figure for May came in at 2.1 per cent, down from 2.4 per cent in April. Commonwealth Bank analysis shows household spending rose for a third consecutive month in June, up 0.3 per cent following gains of 0.4 per cent in April and May. Source: Getty / Traceydee Photography The annual trimmed mean inflation — which doesn't include major price swings and is the RBA's preferred measure — was at 2.4 per cent, down from 2.8 per cent in April. Morningstar chief investment officer for the Asia Pacific, Matt Wacher, said falling inflation means Australians could be feeling more confident about spending money. "In real terms, adjusted for inflation, household incomes are actually growing again in real terms, which they weren't for quite a period there," he said. "That kind of makes people feel that there's a bit more money in their hip pocket when they're actually earning more than the inflation rate again." Wacher said that the savings rate — the percentage of their income Australian households are able to save — has rebounded since a low of about 1.5 per cent in September 2023. In the March quarter it rose to 5.2 per cent, according to the Australian Bureau of Statistics. Reasons for optimism, or a crisis still 'far from over'? Further argument for optimism in the economy is the fact the RBA is likely to lower the official cash rate even further, Wacher said. "The market is still pricing in four rate cuts over the next 12 months, and that would certainly have a very large effect if that was to come through on consumer balance sheets," he said. But Australians aren't necessarily going to feel like they are out of the woods, the Australia Institute's senior economist, Matt Grudnoff, said. "People are likely to still be feeling the pinch," he said. "When people talk about inflation easing, they don't mean that prices are going backwards, they just mean that they're not increasing as fast as they once were." Grudnoff said Australians with mortgages haven't changed their behaviour significantly since the RBA started introducing rate cuts. "Around 80 per cent of people haven't adjusted their repayments [since the cute were introduced]," he said. "So effectively, rather than taking the extra money, people are just paying down debt faster, which suggests that they're not increasing their spending in response to this cutting interest rates, which tells me that they're still quite worried and uncertain about the future." Australians with mortgages haven't changed their behaviour significantly since the RBA started introducing rate cuts, according to economist Matt Grudnoff. Source: AAP / Bianca De Marchi When people are uncertain and worried about the economy, "their first reaction is to kind of pay down debt and get ahead in order to build a buffer against any future kind of shock," he said. "If unemployment is going up, people might be worried about their jobs. The economy's growth is almost flat so they're worried about their jobs and if they're uncertain and worried, they're not going to be rushing out and spending on discretionary items." Australian Council Of Social Service CEO Cassandra Goldie said the cost of living crisis is "far from over". "There are persistent cost pressures that are placing people on low incomes under enormous financial stress," she said. "Housing affordability has continued to deteriorate, while rental stress has become more persistent and is damaging people's health."
Sydney Morning Herald
01-07-2025
- Politics
- Sydney Morning Herald
Young, socialist, Muslim NY mayoral candidate is the start of a revolution
Zohran Mamdani just pulled off the political upset of the year in New York's Democratic mayoral primary. It was a David and Goliath moment, powered by young, working-class New Yorkers fed up with the cost of living and political neglect. Mamdani's rise signals a shift in urban politics – one that's echoing far beyond New York. In backing Mamdani, 33, a Muslim democratic socialist, voters chose representation that's both lived and loud. New Yorkers chose someone to defeat former governor Andrew Cuomo, a political heir with a history of sexual harassment allegations. They chose someone who would help them afford to live in the city they love. Someone who TikToks speaking Hindi, clipping Bollywood icon Amitabh Bachchan, and has Emily Ratajkowski wearing a 'Hot Girls for Zohran' T-shirt. Someone who uses the term 'genocide' when discussing the Middle East. Mamdani is upending politics, and it isn't a surprise to me. I'll admit my bias. I'm a 28-year-old Indian Australian corporate lawyer with a lot of HECS debt and no real assets. I get called 'Greg' once a fortnight because my name appears 'Garg, Tushaar' in Outlook. So when Mamdani corrected Cuomo for butchering his name again, spelling it out, letter by letter, he had me dead to rights. 'The name is Mamdani', he told New York and Cuomo. Unlike the Australian dream, the American dream isn't built on owning the home you live in. But even renting is becoming untenable in many major cities. New Yorkers now spend more than 50 per cent of their income on housing. For every 100 low-income households in New York, there are just 36 affordable rentals. In an early debate, the Democratic mayoral candidates were asked what they each pay in rent. Adrienne Adams owned her home. Cuomo? $US7800 ($11,846) per month. Mamdani? $US2,300 per month. Unable to own the homes they live in or spend close to $US2000 a week on rent, many young voters identified with Mamdani. This support only grew as New York's Robin Hood unveiled plans to tax the rich and build for the poor. Mamdani plans to place an additional 2 per cent tax on those earning over $US1 million and increase corporate tax rates. He will also freeze rent for more than 2 million tenants and fast-track 200,000 new affordable homes. Loading In Sydney, the picture is just as bleak. Over the weekend of March 15-16, Anglicare found that of 13,334 private rentals advertised across Greater Sydney, only 21 were affordable for a single person on minimum wage. If you're a young professional hoping to live anywhere near Sydney city, you'll need to pile a generous premium on top of the asking price, just to be in the running for a rental. At my age, the hip-pocket nerve is the most sensitive, and it's starting to pinch. Mamdani spoke to voters who are tired of seeing their faith politicised. Unsurprisingly, he resonated with New York's large Muslim population. More significantly, he began gaining support from across the aisle, including parts of New York's Jewish community, the largest outside of Israel. This kind of cross-cultural support is rare in today's political climate, where campaigns thrive on division and xenophobic rhetoric.
The Age
01-07-2025
- Politics
- The Age
Young, socialist, Muslim NY mayoral candidate is the start of a revolution
Zohran Mamdani just pulled off the political upset of the year in New York's Democratic mayoral primary. It was a David and Goliath moment, powered by young, working-class New Yorkers fed up with the cost of living and political neglect. Mamdani's rise signals a shift in urban politics – one that's echoing far beyond New York. In backing Mamdani, 33, a Muslim democratic socialist, voters chose representation that's both lived and loud. New Yorkers chose someone to defeat former governor Andrew Cuomo, a political heir with a history of sexual harassment allegations. They chose someone who would help them afford to live in the city they love. Someone who TikToks speaking Hindi, clipping Bollywood icon Amitabh Bachchan, and has Emily Ratajkowski wearing a 'Hot Girls for Zohran' T-shirt. Someone who uses the term 'genocide' when discussing the Middle East. Mamdani is upending politics, and it isn't a surprise to me. I'll admit my bias. I'm a 28-year-old Indian Australian corporate lawyer with a lot of HECS debt and no real assets. I get called 'Greg' once a fortnight because my name appears 'Garg, Tushaar' in Outlook. So when Mamdani corrected Cuomo for butchering his name again, spelling it out, letter by letter, he had me dead to rights. 'The name is Mamdani', he told New York and Cuomo. Unlike the Australian dream, the American dream isn't built on owning the home you live in. But even renting is becoming untenable in many major cities. New Yorkers now spend more than 50 per cent of their income on housing. For every 100 low-income households in New York, there are just 36 affordable rentals. In an early debate, the Democratic mayoral candidates were asked what they each pay in rent. Adrienne Adams owned her home. Cuomo? $US7800 ($11,846) per month. Mamdani? $US2,300 per month. Unable to own the homes they live in or spend close to $US2000 a week on rent, many young voters identified with Mamdani. This support only grew as New York's Robin Hood unveiled plans to tax the rich and build for the poor. Mamdani plans to place an additional 2 per cent tax on those earning over $US1 million and increase corporate tax rates. He will also freeze rent for more than 2 million tenants and fast-track 200,000 new affordable homes. Loading In Sydney, the picture is just as bleak. Over the weekend of March 15-16, Anglicare found that of 13,334 private rentals advertised across Greater Sydney, only 21 were affordable for a single person on minimum wage. If you're a young professional hoping to live anywhere near Sydney city, you'll need to pile a generous premium on top of the asking price, just to be in the running for a rental. At my age, the hip-pocket nerve is the most sensitive, and it's starting to pinch. Mamdani spoke to voters who are tired of seeing their faith politicised. Unsurprisingly, he resonated with New York's large Muslim population. More significantly, he began gaining support from across the aisle, including parts of New York's Jewish community, the largest outside of Israel. This kind of cross-cultural support is rare in today's political climate, where campaigns thrive on division and xenophobic rhetoric.
West Australian
26-06-2025
- Business
- West Australian
Single parents on minimum wage left with just $1 for energy bills after paying for expenses
A single parent on minimum wage with one child will have just a single dollar left a week after paying for essential expenses, a report by Anglicare Australia has revealed. Anglicare's Cost of Living Index paper examined minimum wage workers and their take home pay after paying for necessities like rent, food, transport and education. For a single parent with one child, only $1 is left after paying more than $1000 each week for necessities. The figure includes Government supplements but does not include the cost of utilities. The report estimates a couple who both on minimum wage with two children would have just $5 left over per week. Even for a single minimum wage worker without children, only $33 remains each week after covering core living costs. Anglicare WA chief executive officer Philippa Boldy said the situation for people on the minimum was 'shocking'. 'Looking at the data, it's a stark reminder that many people in our communities have income so much less than the funds that they need to get by,' she said. 'With the way things are at the moment, week on week, people are falling further and further behind. 'I think everybody knows someone in our society who's been impacted by the housing crisis, and almost everyone in our community knows someone who's really feeling the pinch. 'But when you step back and consider what life looks like for all of those in our community living on minimum wage, it's really shocking.' According to Anglicare WA, just 14 properties were available and affordable for a single minimum age worker in Western Australia. Ms Boldy said long-term reform was needed. 'The most effective thing that we can do for people who are living at or below the minimum wage level or on the poverty line is to increase the income they're attempting to get by on, or to significantly reduce their costs,' she said. 'Our State and Federal Governments are investing in a wide range of temporary financial-support initiatives which essentially just temporarily prop people up; this is a sign that we know we've got a major problem on our hands. 'We are using temporary solutions to attempt to fix what's very much a long-term problem.'
ABC News
26-06-2025
- Business
- ABC News
Calls for energy debts to big companies to be wiped
As parts of the country feel the bite of a cold snap a new report is warning hundreds of thousands of Australians are in debt over energy bills. Anglicare has released a new report finding households on minimum are struggling with as little as $33 for left over after paying for rent, food and transport. They're now calling for more to be done including debt forgiveness for those doing it tough.
