A few weeks ago, if you asked the average Aussie on the street if their cost of living and household bills were going up or down, they’d emphatically assert that the bills were definitely on the rise. The Guardian reports, however, that a new study states that the opposite is true in Australia. Not only aren’t the bills ‘skyrocketing," they’re decreasing enough so that Australians, on average, are up about $5,300 a year and wages are rising.
The Analysis
These findings have been reported by the National Centre for Social and Economic Modeling. According to their findings, "wage increases are easily outstripping cost of living increases across the country, with West Australian families $9,776 a year better off in real terms than they were in 2008." Depending on where you live in Australia, you could be better off by thousands. Tasmania reflects the most modest increase at $874; nevertheless, household bills and any associated increases aren’t quite the picture that some politicians have painted them to be. The Guardian also reports that low-income families may not benefit as Aussies in higher tax brackets because of interest rates; however, they appear to be better off than in recent years too.
The Bills
Some of Australians’ household bills are definitely decreasing. For instance, Aussies that obtain their power from solar energy, for example, can expect to save half on their electricity costs compared to people obtaining their energy from the grid. That kind of cost-savings is the stuff of dreams for many people throughout the world still paying rising energy costs.
On the other hand, many Australians complain that it’s just certain bills that are substantially increasing. Child care and groceries, for instance, are said to be on the rise. According to McCrindle Research, grocery prices are up by about 74%. When it comes to some energy bills, there have been increases—as much as 83%. Nevertheless, in the shuffle of increasing and decreasing costs coupled with cost of living increases, Australians are still in the black since their wage increases are said to offset other costs.
Australia is Expensive
While most experts agree that it is expensive to live in Australia, the statistics show that Australians enjoy good wages and a high standard of living. ABC News confirmed this summer that "Australians are taking home more money than ever before". In many respects, expenses increase depending on where one lives. Purchasing homes in the city is out of reach for many Australian’s who are clearly just getting by. The ABC report says that the average home cost is four times as much as it was in 1998. One wonders if the statistics tell everyone’s story since, after all, they merely report the "average." Many Australians cannot afford to buy a home and are doing what they can merely to make ends meet.
Cutting Costs
Many Australians are looking to alternative solutions to bring down their annual expenses. Alternative energy solutions, for instance, are increasingly popular. Commuters who once battled rush hour traffic in cities like Sydney are cutting back on petrol costs by taking to cycling networks and pedaling to work instead. Energy conservation is also a hot topic among both households and businesses throughout the nation. Politicians, of course, are looking for solutions to bring costs down further, but no overnight fix appears to be on the horizon.
Lifestyle Costs
Another report in the Guardian suggests that the Australians’ lifestyles are expanding—not their cost of living. The report asserts, "if we’re being honest with ourselves, there is a subtle but considerably significant difference between cost of living and cost of lifestyle." There may be truth to that statement when one considers that "everyone" seems to be complaining about the rising costs of bills. On the other hand, those Australians who have enjoyed wage increases are also coping with any increase that comes their way—on average, of course.
As the lifestyles of Australians have increased, the Guardian reports highlights that debt has also increased since the 1980s. The article associates debt with lifestyle costs and not with the cost of living. Expense and debt aside, Australia still often makes best of lists as one of the best countries to live in. Their economy may certainly not be perfect; it is, at least essentially regarded as pretty healthy by international standards.