Australian Bureau of Statistics – Michmutters
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Business

Choice survey reveals Aussies are under the pump trying to pay their bills

New research has revealed nine out of 10 Aussies say they are struggling to manage their household budgets amid the rising cost of living.

A survey by consumer group Choice found 90 per cent of more than 1000 participating households said their bills had increased since 2021 – with the biggest financial burdens health insurance and utilities.

Choice editor Marg Rafferty said almost all Aussie households were feeling the pressure of price rises, with the report highlighting how difficult it’s become to manage the household budget.

“Among the biggest financial burdens, the research found, was health insurance and utilities,” she said.

“Cost of living pressures continue to be a major issue for Australians.”

Almost three in five respondents reported concerns about their disposable income, with pulse data revealing 23 per cent of households are struggling to get by, which is up from 18 per cent in June last year.

Ms Rafferty offered advice to Australians struggling to keep up with their bills, saying “there’s a chance you could be getting a better deal elsewhere”.

“Our research shows you can save up to $935 a year on hospital cover by switching to a similar policy with a different provider.” she said.

“It always helps to spend some time comparing what’s on the market.”

According to the Australian Bureau of Statistics, household spending in June was up more than 10 per cent compared with the same time period last year.

But household bill hikes are not the only thing Aussies are spending their money on, with residents feeling the pinch of an additional 15 per cent increase on services and 5 per cent rise on goods.

The monthly figures, which were released on Tuesday, revealed both discretionary and non-discretionary spending increased following an inflation rate of 6.1 per cent.

Non-essential costs rose by 10.8 per cent, driven by spending in recreation and cultural activities, while essential spending rose by 9.8 per cent, due to the rising cost of transport.

The most significant area of ​​spending was on transport, up 22.7 per cent, driven by higher oil prices due to the ongoing war in Ukraine and the demand for air travel.

Spending at hospitality businesses like hotels, cafes and restaurants was up 17.1 per cent in what is viewed as a positive return to pre-pandemic levels.

There was also strong growth in spending on clothing and footwear – up 16.3 per cent, as well as a 15.5 per cent increase in recreation and culture.

Jacqui Vitas, from the Australia Bureau of Statistics, said June marked the 16th consecutive month of through-the-year increases in total household spending.

“This was off the back of consistent decreases in total household spending from March 2020 to February 2021, as responses to Covid-19 were experienced across the country,” she said.

“Spending categories most impacted from Covid-19 responses – transport, hotels, cafes and restaurants, and clothing and footwear – have now returned to pre-pandemic levels.”

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Sports

Serena William’s retirement from tennis is proof women can’t have it all

Earlier this week one of the most successful and celebrated athletes of all time – 23-time Grand Slam winner – Serena Williams announced her retirement from tennis.

While the news was most definitely headline generating, the reason behind it was far from a shock.

The 41-year-old’s decision, explored in an ‘as told to’ article in Vogue, outlined that she was retiring, partly, in order to expand her family.

“Something’s got to give,” she said. And unfortunately, as sexist, unfair and outdated as this may be, she’s right.

“Believe me, I never wanted to have to choose between tennis and a family,” she wrote.

“I don’t think it’s fair. If I were a guy, I wouldn’t be writing this because I’d be out there playing and winning while my wife was doing the physical labor of expanding our family.

“These days, if I have to choose between building my tennis resume and building my family, I choose the latter.”

In response to this, some have criticized Williams for using motherhood as an excuse, as if retirement is some sort of cop-out for not being a good enough tennis player.

I read comparisons between her and past female tennis players who competed after having children, putting them up on nonsensical pedestals because they didn’t use being a mum as an excuse for ‘giving up.’

While no, Williams has not won a Grand Slam Singles title since the Australian Open in 2017 (while pregnant with her daughter, a feat in its own right), not many other female players of the Open Era have either. In fact, there are only three – Kim Clijsters, Margaret Court and Evonne Goolagong Cawley.

The majority have found motherhood and professional tennis an unworkable combination.

Despite the challenges that arose, Williams still persevered and still succeeded, coming Runner Up in four Singles Grand Slams finals (yep, mum and all).

“I went from a C-section to a second pulmonary embolism to a grand slam final. I played while breastfeeding. I played through postpartum depression,” she said.

The biological inequality of being a woman is so difficult that it’s leading some professional tennis players with a desire to have it all (both career and family) to explore fertility options early in their careers.

Former Australian tennis player, Rennae Stubbs told ABC Radio National Breakfast: “I know players that want to have children, that want to have a family, have [frozen] their eggs, because they want to play until their mid-30s or 40s.

“So, they freeze eggs so they can have kids later on in life. But think about Tom Brady or Roger Federer or Rafa [Nadal] now; you can have children and keep playing because you’re not the one birthing it and taking nine months to have the child and then the recovery after the child.”

But it’s not just professional tennis players facing these challenges, elite athletes of all disciplines often struggle to find a workable way forward because there is a certain level of commitment that is expected, and this often means sacrificing other aspects of their life.

There is often also a peak performance window, usually in their 20s and 30s which coincides with fertility.

While yes, arguably it is possible to do both, there is no doubt that there would be additional costs, extra work and huge obstacles to overcome, including these fertility treatments, and for some, these just aren’t worth it.

In Williams’ case, this would have meant postponing having a second child in order to keep playing. Given she is 41, this may have meant giving up on extending her family for good.

“I definitely don’t want to be pregnant again as an athlete. I need to be two feet into tennis or two feet out,” she said.

While Williams says the choice is clear, the reality is, for her and many women it isn’t really a choice, and it is definitely not fair.

Regardless of what industry women work in, this situation, of having to choose between career or family, is prevalent and it’s not just a biological inequality but something more entrenched in our society and culture – you only need to look at paid parental leave to see Este.

Over the last decade, data from the Australian Bureau of Statistics shows that 95 per cent of primary carer paid parental leave was taken by mothers, despite most primary carer paid parental leave schemes being accessible to both women and men.

Professor Marian Baird told Women’s Agenda that “Paid Parental Leave Act was “a giant leap forward” when it came out in 2010, but that it has “barely changed in a decade”.

“Our research shows that opening up opportunities for fathers to take paid carer leave will make significant headway towards gender equality,” said Professor Baird. “But after almost a decade since the Act was introduced, there’s been no movement in the duration of leave that’s accessible through paid secondary carer leave provisions like Dad and Partner Pay.”

While it’s easy to criticize anyone for their choices, the facts remain, as sexist and unfair as they may be – women can’t have it all – family and career – at least not at the same time. Williams is proof of that.

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Categories
Sports

Serena William’s retirement from tennis is proof women can’t have it all

Earlier this week one of the most successful and celebrated athletes of all time – 23-time Grand Slam winner – Serena Williams announced her retirement from tennis.

While the news was most definitely headline generating, the reason behind it was far from a shock.

The 41-year-old’s decision, explored in an ‘as told to’ article in Vogue, outlined that she was retiring, partly, in order to expand her family.

“Something’s got to give,” she said. And unfortunately, as sexist, unfair and outdated as this may be, she’s right.

“Believe me, I never wanted to have to choose between tennis and a family,” she wrote.

“I don’t think it’s fair. If I were a guy, I wouldn’t be writing this because I’d be out there playing and winning while my wife was doing the physical labor of expanding our family.

“These days, if I have to choose between building my tennis resume and building my family, I choose the latter.”

In response to this, some have criticized Williams for using motherhood as an excuse, as if retirement is some sort of cop-out for not being a good enough tennis player.

I read comparisons between her and past female tennis players who competed after having children, putting them up on nonsensical pedestals because they didn’t use being a mum as an excuse for ‘giving up.’

While no, Williams has not won a Grand Slam Singles title since the Australian Open in 2017 (while pregnant with her daughter, a feat in its own right), not many other female players of the Open Era have either. In fact, there are only three – Kim Clijsters, Margaret Court and Evonne Goolagong Cawley.

The majority have found motherhood and professional tennis an unworkable combination.

Despite the challenges that arose, Williams still persevered and still succeeded, coming Runner Up in four Singles Grand Slams finals (yep, mum and all).

“I went from a C-section to a second pulmonary embolism to a grand slam final. I played while breastfeeding. I played through postpartum depression,” she said.

The biological inequality of being a woman is so difficult that it’s leading some professional tennis players with a desire to have it all (both career and family) to explore fertility options early in their careers.

Former Australian tennis player, Rennae Stubbs told ABC Radio National Breakfast: “I know players that want to have children, that want to have a family, have [frozen] their eggs, because they want to play until their mid-30s or 40s.

“So, they freeze eggs so they can have kids later on in life. But think about Tom Brady or Roger Federer or Rafa [Nadal] now; you can have children and keep playing because you’re not the one birthing it and taking nine months to have the child and then the recovery after the child.”

But it’s not just professional tennis players facing these challenges, elite athletes of all disciplines often struggle to find a workable way forward because there is a certain level of commitment that is expected, and this often means sacrificing other aspects of their life.

There is often also a peak performance window, usually in their 20s and 30s which coincides with fertility.

While yes, arguably it is possible to do both, there is no doubt that there would be additional costs, extra work and huge obstacles to overcome, including these fertility treatments, and for some, these just aren’t worth it.

In Williams’ case, this would have meant postponing having a second child in order to keep playing. Given she is 41, this may have meant giving up on extending her family for good.

“I definitely don’t want to be pregnant again as an athlete. I need to be two feet into tennis or two feet out,” she said.

While Williams says the choice is clear, the reality is, for her and many women it isn’t really a choice, and it is definitely not fair.

Regardless of what industry women work in, this situation, of having to choose between career or family, is prevalent and it’s not just a biological inequality but something more entrenched in our society and culture – you only need to look at paid parental leave to see Este.

Over the last decade, data from the Australian Bureau of Statistics shows that 95 per cent of primary carer paid parental leave was taken by mothers, despite most primary carer paid parental leave schemes being accessible to both women and men.

Professor Marian Baird told Women’s Agenda that “Paid Parental Leave Act was “a giant leap forward” when it came out in 2010, but that it has “barely changed in a decade”.

“Our research shows that opening up opportunities for fathers to take paid carer leave will make significant headway towards gender equality,” said Professor Baird. “But after almost a decade since the Act was introduced, there’s been no movement in the duration of leave that’s accessible through paid secondary carer leave provisions like Dad and Partner Pay.”

While it’s easy to criticize anyone for their choices, the facts remain, as sexist and unfair as they may be – women can’t have it all – family and career – at least not at the same time. Williams is proof of that.

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Categories
Business

ABS: Monthly household spending indicator reveals 10 per cent more spending

Household spending in June was up more than 10 per cent compared with the same time last year, as Australia struggles through skyrocketing cost of living.

The latest monthly spending figures, released on Tuesday by the Australian Bureau of Statistics, show household spending increased 10.2 per cent through the year, with a 15.9 per cent increase on services and a 5.0 per cent increase on goods.

Both discretionary and non-discretionary spending increased – not surprising given the rate of inflation is 6.1 per cent.

Discretionary spending rose by 10.8 per cent, driven by spending in recreation and cultural activities, while non-discretionary spending on essentials rose 9.8 per cent, due to the rising cost of transport.

The most significant area of ​​spending was on transport, up 22.7 per cent, driven by higher oil prices due to the ongoing war in Ukraine and the demand for air travel.

Spending at hospitality businesses like hotels, cafes and restaurants was up 17.1 per cent in what is viewed as a positive return to pre-pandemic levels.

There was also strong growth in spending on clothing and footwear – up 16.3 per cent; as well as a 15.5 per cent increase in recreation and culture.

Jacqui Vitas, from the Australia Bureau of Statistics, said June marked the 16th consecutive month of through-the-year increases in total household spending.

“This was off the back of consistent decreases in total household spending from March 2020 to February 2021, as responses to Covid-19 were experienced across the country,” she said.

“Spending categories most impacted from Covid-19 responses – transport, hotels, cafes and restaurants, and clothing and footwear – have now returned to pre-pandemic levels.”

Queensland and Victoria recorded the highest state-based increases in spending through the year, spending 12.4 per cent and 11.8 per cent respectively more.

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Categories
Business

Grocery prices: Free lychees send shoppers into frenzy at Sydney’s Paddy’s Markets

Footage of shoppers in a frenzy after free fruit was offered at bustling Sydney market has perfectly summed up Australia’s cost of living crisis.

Data released by the Australian Bureau of Statistics showed the price of groceries is up 5.3 per cent annually and it is expected to rise further.

Fruit and vegetable prices were up 6.7 per cent, with some products — including staples like lettuce — soaring to ridiculous prices amid shortages.

So when lychees were on offer at the CBD’s Paddy’s Market, it led to dozens of shoppers clamoring over crates to get their fix.

It came as new research revealed supermarkets are forcing many people to overspend, costing households an extra $1,200 each year.

A survey of more than 2000 Australians found about two in five people frequently overspend their food budget and 82 per cent now splurge up to $200 on their weekly grocery shop.

The research, conducted by meal kit delivery service HelloFresh, also found 71 per cent of respondents were worried food items would continue to become more expensive.

Last month, Red Rich Fruits Managing Director Matthew Palise said rising prices have been brought on by a “perfect storm”.

Rising fuel prices, a tripling of fertilizer costs and a countrywide labor shortage have both hit farmers hard as competition ramps up.

A torrential rain season on the east coast — and general disruption from the pandemic — have also contributed to skyrocketing prices.

Mr Palise said they are currently selling off mandarins for between $2.50-$3.50 per kilogram, and has recommended shoppers on a budget go for what’s in season.

Mr Palise said sweet potato, onions, pumpkin and pink lady apples are currently some of the best value for money fruit and veg at the moment, but also reassured the market would ease going into the warmer months.

“You’ll see an easing into spring, especially on the higher priced produce like berries,” Mr Palise told news.com.au in July.

“It won’t go back to pre-pandemic prices, but there is relief on the way.

“My advice to shoppers is to buy local, spot the specials.”

Read related topics:sydney

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Categories
Business

Homeowners pay $5k extra in interest on loan over three years unnecessarily

Sitting back and watching the interest rate rise on your home loan could be costing you hundreds of dollars more a month unnecessarily.

Homeowners are being warned not to fall victim to a “mortgage loyalty tax” by staying with their current lender as banks offer discounts and perks to compete for new customers.

Analysis by RateCity shows all four major banks are offering new customers a significantly lower variable rate than existing customers who have not “haggled” for something better.

The financial comparison site found someone who took out a variable rate loan in September 2019 could be paying an interest rate that’s almost a full percentage point higher than a new customer today.

Looking at Australia’s largest bank as an example, RateCity estimates a Commonwealth Bank customer who took out a $500,000 loan three years ago would have paid an extra $5101 in interest over that time if they had not negotiated.

For a $750,000 loan it is an extra $7,652 in interest and for a $1 million loan it is $10,202.

RateCity explained that in those three years, the bank offered discounts on its lowest variable rates five times to new customers, which meant unless an existing customer called up their bank and negotiated each time, they missed out 0.93 percentage points off their rate.

Addressing RateCity’s findings, Commonwealth Bank said in a statement it was committed to providing existing and new customers with “an array of great value and flexible home loan products”.

It highlighted its “Green Home Offer” where existing customers have access to a low standard variable rate if their home meets certain sustainability and energy efficient criteria.

“We encourage our customers to reach out to us to see how our extensive network of home lending specialists are able to help them find the right solution for their needs,” A CBA spokeswoman said.

The Reserve Bank of Australia increased the official cash rate by 0.50 per cent on Tuesday – the fourth hike in four months.

While the major banks have passed on the rate rises in full to existing customers, they are still offering discounts to bring in new business.

RateCity research director Sally Tindall said banks were “falling over themselves” to offer discounts and perks to borrowers willing to move from a competitor.

“Once the August hikes filter through, a competitive interest rate for owner-occupiers is likely to be around 3.50 per cent,” she said.

“If your variable rate starts with a 4 or even a 5, then you really should question why.”

RateCity found at least 10 lenders have cut variable rates since the hikes began, but only for new customers.

The value of refinanced loans surged by $1.06 billion to $18.16 billion in June, according to the Australian Bureau of Statistics. That is the highest value on record.

As well as rate hikes prompting mortgage customers to shop around, Ms Tindall said many borrowers would be coming off low fixed rate contracts they signed up for during Covid.

“Refinancing hit a record high in June and we expect this will keep on climbing as borrowers roll off their fixed loans, only to find rates have gone through the roof since they last looked at their mortgage,” she said.

“This will in turn push the banks to come up with even more discounts and perks for new customers, particularly refinancers looking to jump ship from a competitor.”

Customers also have the option to call up their bank and negotiate a better interest rate.

“If you do go down this path, do your research before you make the call,” Ms Tindall warned.

“Check what rate you’re on, check what rate your bank is offering new customers, but also what other lenders might be willing to offer you.

“If you have a couple of quotes at the ready for some of your bank’s competitors, they’re likely to take notice.”

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Categories
Business

Cost of living: New data from Foodbomb exposes foods hit hardest by inflation

As the consumer price index (CPI) tips over 6 per cent, new data reveals how much staple pantry items, fruits and vegetables have soared in price over the last six months.

According to the Australian Bureau of Statistics, the price of food and non-alcoholic beverages increased by 5.9 per cent in the last year due to high freight costs, supply constraints and strong demand.

As a result, consumers and businesses have gone to extreme lengths to cope with the country’s cost of living crisis as empty shelves, sky-high price tags and costly grocery bills become the new normal.

Recently there have been some unusual methods Australians have used to slash costs and make-up for insufficient stock, including broccoli stalks being broken off and left on fresh produce units and KFC switching lettuce for cabbage in its burgers.

So with the effects of inflation felt and seen right around the country, food experts from Foodbomb crunched the numbers to assess which foods are having the greatest impact on consumers’ hip pockets.

Research shows that broccoli, iceberg lettuce and baby spinach have been the most expensive items in short supply within the last six months.

Broccoli has increased by a staggering 130 per cent, with a box previously worth $42 now costing stockists $95 each. This increase is then passed onto consumers per kilo.

Meanwhile, the price of iceberg lettuce hiked from $4 to $10.80, at a 151 per cent increase. A bag of shredded lettuce also rose for $7.50 per kilo.

As for baby spinach, the price for a 1.5kg box more than doubled, rising from $16.50 to $38.50.

While these prices have caused trouble for consumers and businesses in the past, offering some hope is Mouhamad Dib, the company director at MD Provodores.

He told news.com.au that despite the increase in costs observed recently, the inflated price tags on these leafy vegetables won’t be here to stay.

“The cost of fertilizer from the farms, to labor shortages and transport costs has amplified pricing across all sectors,” Mr Dib said.

“But with spring around the corner and summer days behind it, we hope to see some prices come down. Lettuce leaves are definitely still in short supply, but broccoli and baby spinach are getting better.”

Unfortunately, the same can’t be said for staple pantry items and animal products which are taking a hit as a result of global events and supply chain issues.

Oil unexpectedly soared in price with 20 liters of sunflower oil doubling from $30.60 to $66. Whereas the cost of canola oil is triple the amount, with some suppliers selling the same quantity for as much as $92.10.

It’s bad news for egg lovers with the war in Ukraine preventing farmers globally from sourcing feed grain which has in turn slowed egg production.

As a result, wholesale prices for a one dozen carton of free-range eggs have risen from $2.60 to $4.45. Caged eggs have also seen a similar increase however, they aren’t selling out in supermarkets as quickly due to the shift in demand for the cage-free range.

Foodbomb predicts that egg supply will run tight for the next 18 months as feed supply becomes increasingly difficult to source.

Salmon and chicken breast are also among some of the other animal products in short supply while selling at a higher cost, now ticketed at $40kg and 9.50kg respectively.

Similar to the egg situation, consumers can expect the price of chicken meat to remain high for the next 12 months.

Anthony Ponte from the operations and procurement department at wholesaler Melba Fresh told news.com.au that these price increases are a reflection of the market.

“(Prices) are going up because the supply is going down, while the demand is staying the same if not increasing. As a result, we’re getting less sales and it’s getting harder and harder to source produce,” he said.

“We’ve been looking everywhere, interstate and all kinds of places, just trying to get our hands on products. It’s been very hard. We have to split what we’ve got between orders, but you still ultimately end up disappointing everyone.”

Mushrooms also make Foodbomb’s top 10 list of expensive items in short supply with a box now priced at $50 each. Lebanese cucumbers, $11 per kilo, and cabbage, $14 each, come in at ninth and 10th place.

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Business

KOBA: Man saves more than 50 per cent on car insurance

Cost of living pressures are continuing to hit many Australians hard, so when Liam Gayner realized he could slash his car insurance fees in half he jumped at the opportunity.

The father of one has two cars — the primary car, which his wife drives, and the less “flashy” secondary vehicle that he uses.

But because the family lives close to a train station in Perth, the secondary car only travels about 6000km per year and Mr Gayner realized he was paying a flat yearly rate for the vehicle that was costing too much.

Mr Gayner was previously paying $61.69 per month for his car insurance with CommInsure, but made the decision to go through all of the family’s finances to find ways to save some cash.

The 32-year-old realized by switching to pay-as-you-drive insurer KOBA, his fees would be slashed to just under $30 per month.

“I heard about KOBA because they were doing a crowdsource fundraiser,” he told NCA NewsWire.

“I had a look at the pricing structure and found for me it was a unique fit… I fall into their target audience, so I estimate that I’m going to drive about 6000km in a year.

“It ends up being just under $30, so it ends up being a bit over a 50 per cent saving.”

Mr Gayner recommends people do the “fairly boring thing” of reviewing all of their insurance, including life, house and health.

“I basically reviewed it all for my current situation because I think like most people, you set it up and then you forget about it,” he said.

“When I was sorting out my health insurance, it was back when I was at uni, I didn’t really care. I didn’t really understand it.

“Same with life insurance where it just gets chucked onto your superannuation and you’re not really aware that you’ve been docked that money the whole time for a policy that might not be relevant to you.

“For example, I’m an engineer by profession and there’s a couple of life insurance options out there that have special deals for your profession.”

Mr Gayner said for him the appeal of KOBA was that he could pay as he drove.

“I would have had to drive 25,000km a year to have the equivalent that I was paying on my previous account,” he said.

“We can decide that if we’re doing something on the weekend, or we’re going to go on a car trip, we take the wife’s car and leave my car at home.”

KOBA, which launched in November last year, has seen a 70 per cent surge in usage in the past month.

The company uses a small monitoring device that plugs into a user’s car and tracks their distance travelled.

It means that after paying a flat rate for parking insurance, they only pay for what they use.

“It might tell me I drove for nine minutes, 2.1km and it cost 11 cents in insurance. It’s that simple,” KOBA founder Andrew Wong said.

“In the current climate, it’s a great way for people to keep track of their insurance expenses because they can see the cost as it happens.”

Mr Wong said with many people still working hybrid weeks and using their cars less, traditional car insurance did not make sense.

“If you’re driving less and for shorter distances why should you be paying the same for car insurance as everybody else?” he said.

“We’re finding people are using their cars less since the pandemic. Some are still working from home a couple of days a week, others are taking advantage of borders reopening to fly overseas and see loved ones so their car is sitting there unused — and costing money.

“If you are driving 8000km or less a year it’s worth looking at switching over.”

The average car in Australia is driven just over 11,000km per year, according to the latest Australian Bureau of Statistics data.

Read related topics:Perth

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