Struggling to cover the cost of essentials?

money tied up with a measuring tape

Huge dips in household income mean around 40 per cent of renters can't afford essential items including bills, clothing, transport and food after they are paying rent due, according to new research by the Australian Housing and Urban Research Institute (AHURI) and University of Adelaide.

Australians earning less than $90,000 experienced higher rates of reduced working hours, temporary job loss and reduction in income when compared with higher-income households.

These lower-income households are now struggle to pay for the essentials after paying rent.

“COVID-19 has been devastating for many Australians, but those in the rental sector have been particularly impacted,” said project leader Professor Emma Baker.

“The pandemic, and the subsequent economic and social lockdown, has rapidly changed our housing system: the way we use our homes, our ability to afford them, and the role of government safety nets. 

“The pandemic has placed many people in the rental market at risk; they face uncertainty, tenure insecurity, financial hardship and significant mental health effects.”

More than a quarter of Aussie households (28 per cent) say they would still need goverment assistance for at least the next 12 months, while 31 per cent were unsure and 40 per cent said that they would not.

“Many renters are currently buffered from the full economic effects of the pandemic by their savings, their superannuation and rent deferment, as well as a temporary government support in the form of eviction moratoriums, JobKeeper and JobSeeker,” said Prof. Baker. 

“With the ongoing health and economic effects of the COVID-19 pandemic still evolving, if these savings and superannuation buffers eventually run out, renters will be entirely dependent on packages of government support. In the absence of an effective and accessible vaccine, it is likely that the situation for renters captured in this mid-2020 snapshot will be different – and almost certainly worse – by mid-2021.”

Do you think you will still need government supplements for the next 12 months, above and beyond your usual payments or income?

9 comments

If households below 90,000 are struggling, try living your life in a household below 50,000 and even 25,000 as do most people on disability.

The managers who are "in charge" of assisting lower-income people would not have a clue on how Australians on income below $50,000 survive from week to week. $90,000 a year would be a blessing for the people on a very low income. The government "know-alls" should try to live on $25,000 for a year, not a month, with no other assistance and see how they would survive. 

 

Pensioners are not as hard up as people who lost their working hours. I am on part pension and I seem to have more money in the pocket than before Covid-19, probably because I do not mix and mingle as much as I did before. Going away for a weekend we have not done for quite a while and even now with the pubs open again I no longer go every day like it was my habit before. Started buying more expensive and healthy food as well, fresh fish instead of in cans. Glad I no longer have the hospitality job like I had for years - I certainly would be jobless. No tourists anymore.

 

People are clearly reading what they want to read and not what was actually written.

The article states:

Australians earning less than $90,000 experienced higher rates of reduced working hours, temporary job loss and reduction in income when compared with higher-income households.

It doesn't say that people earning $90,000 are struggling. It says those earning BELOW $90,000 were hit hardest because of reduced hours, job loss and consequent loss of income. And frankly I see nothing to argue with that point.

Pensioners on the other hand did NOT experience loss of jobs, reduced hours or loss of income. For them nothing really changed.

 

I'm 79 just getting through each fortnight with nothing left in the bank for any little treats for myself. The stimulus payments went into overdue bills etc. Don't know how I will be able to afford firewood for the coming winter months? The cost of good firewood is unbelievable, I have two older cats my one joy in life but they are ageing just as I am. I have been renting now for over 10 years with the same real estate I'm lucky there but it is a big chunk out of my pension and like many thousands of other pensioners I never had any other money to help me through the dark days. We relied on Pensions going up each year, but it never covered the cost of everything else going up as well. Having 2 cancers does not stop me at the moment, but only time will tell on those. I can only wish and hope that maybe the stimulus payments will come into being again for the pensioners, as they did help us through the rough times. I hope I have not been too harsh about things, but it is not getting any better is it? Oh! by the way, I like many, many thousands of pensioners are trying to live on $25,000 a year.

Your not alone, i cut of the NBN just to expensive and use my smart phone. $70 is ridiculous for internet, I used to pay $29. I think it's time there were pensioner plans $30. Also whilst we had 2 cheques, jobseeker added up to 10.000 over that period, and I know people who's life hasn't changed in that time just saying.

Agree and they want you to eat healthy, try what's on sale more like.

As aged pensioners my husband & myself are finding it very hard to manage from pension to pension, is there any chance that we might get another $750.00 payment as we just can't manage atm.

We pay $310.00 rent to a private landlord & with food & electricity & medications & electricity & petrol we live pension to pension.

I did hear there might be another payment of $750.00 in the works that would be so good as we then would finally have some money in the bank.

When we do FINALLY get a pay rise in the aged pension it is USUALLY $2.50 only I mean to say what can you buy these days for $2.50..

It is disgusting how us old folks are just FORGOTTEN!!!

At least if we got $20.00 rise that would help.

I agree with you 100% Juliane I am also an aged pensioner & find it very hard to manage from pension to pension with no other income I can just hope we get another $750.00 to help with food & the bills..

9 comments



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