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Steven Cross
Despite growing concerns that the cost of living is becoming increasingly unaffordable for Australians, a new report suggests families are better off now than they were in the 80s.
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The AMP.NATSEM Income and Wealth Report shows that household income is outpacing the cost of living over the longer term, with disposable incomes increasing 20 per cent since 1985.
Couples with children have seen their income grow by 37 per cent, single parent incomes have grown 34 per cent and working families 22 per cent.
The report also suggests Australia’s petrol prices are some of the best in the world.
“Only Canada, USA and Mexico have cheaper petrol prices in the developed world," the report read.
“Australia’s average unleaded petrol price of around $1.40 per litre is significantly cheaper than most European countries where petrol can cost more than AUD$2 per litre.”
AMP Financial Services managing director Craig Meller said the report shows households today are more focused on lifestyles and aspirations than they were in the 80s.
“Many Australians are leading busier lives and facing greater demands on their time which means we’re now paying for things we may not have previously, such as childcare, gardening and housekeeping," he said.
“We’ve also seen a noticeable shift in spending habits with people spending more on education, holidays and eating out. Essentially we seem to be leading bigger lifestyles, all of which can add to perceived cost of living pressures.”
The report also showed that from the 2003-2004 financial year to 2009-2010, mortgage expenditure growth had risen 75 per cent with a 22 per cent rise in volume.
