Rising levels of financial stress in Australia

[Hannah Bell]

Two reports released last month reveal rising levels of financial stress in Australian households, particularly among those cut off welfare or denied any relief in the Rudd government’s May 12 budget—the unemployed, sole parents and students.

The reports, one by the Wesley Mission charity and the other by the Australian Council of Social Services (ACOSS), provide a glimpse of the human impact of the worsening recession...

Sydney is the nation’s financial capital. The average household income of the 450 people surveyed was just over $90,000—well above the national average of about $60,000. Yet, most of these people lived in a precarious state, in which an unexpected emergency, such as a major car repair or medical bill, could be enough to push them over the edge. Almost half had no savings, a third struggled with financial problems and one in seven were said to be on the brink of insolvency—spending more than they earned.

...Growing numbers were already finding it difficult to maintain basic services—23 percent could not pay their electricity, gas or telephone bills on time, compared with 13 percent in 2006. Half of all sole parents aged 30-59 years said they would have to make major sacrifices if household expenses rose by $40 a week.

Just as the survey was released, the New South Wales state Labor government announced electricity price increases of 20 percent, pushing up the cost for some households by $200 annually. The rise followed a report from the NSW Energy and Water Ombudsman Clare Petre last year detailing a 32 percent rise during 2007-08 in complaints from people being cut-off electricity or water because they were unable to pay their utility bills.

The ACOSS report, entitled Mind the Gap, points to the increased hardship facing those most disadvantaged by the 2009 federal budget. The Labor government left sole parents with $43 a week less than aged pensioners and the unemployed even further behind—$106 per week. Students brought up the rear, forced to live on $147 a week less...

The ACOSS report draws on a 2008 Social Policy Research Centre survey that found that among those on the single Newstart Allowance (unemployment benefit) of $227 per week ($32 a day), about 45 percent lived below the poverty line of one half median income. Their lives were dominated by constant financial stress—54 percent lacked $500 in emergency savings, 28 percent were unable to pay a utility bill, and 23 percent lacked a decent and secure home.


http://www.wsws.org/articles/2009/jun2009/debt-j01.shtml

[JVS]

1. Crikey!

[ParkieDem]

2. Don't they have national health care?

"Yet, most of these people lived in a precarious state, in which an unexpected emergency, such as a major car repair <b>or medical bill</b>, could be enough to push them over the edge."

Maybe it's not as good in Australia as other western countries, but I doubt most Australians have to worry about medical expenses. Or has the media gotten so used to repeating this in the US that it just pops up elsewhere?