TasTalks – Cost of Living Survey 2022
Gloomy outlook as renters and mortgagees bear the brunt of rising living costs in Tasmania
Rising living costs are squeezing Tasmanian homeowners, with an overwhelming majority reporting higher mortgage payments have already kicked in and more are expected in the coming months, according to the latest EMRS TasTalks survey.
And while people have coped with recent cost-of-living increases up to now, consumer confidence is low and declining, signalling the potential for tougher times ahead for Tasmanian consumers and businesses.
Three-quarters of mortgagees report paying more on their loans, while more than a quarter of homeowners and renters are now allocating between 30% and 49% of their gross income on their loan or rental payments.
In other key findings:
80% of respondents expect to spend more on food and groceries in the next three months;
75% say they have been paying more to run their private vehicles;
Only 7% say it is a good time to buy a new car;
Half of respondents say they have less money to spare than 12 months ago, and
Two-thirds say it is a bad time to borrow money.
Most are pessimistic about the future, with renters most affected with more than one in ten (13%) describing their current financial situation as “bad”, meaning they are unable to meet basic outgoings.
EMRS Managing Director Paul Jamrozik said: “These findings show the cost-of-living crisis that has been such a major global talking point is very much a live issue in Tasmania.
“Some of our findings are reassuring, especially that 81% say they are in a reasonable financial position in terms of being able to make ends meet.
“But there are some clear areas of concern, especially on the future outlook.
“There are important findings for Tasmanian businesses, as it is clear that disposable income in household budgets is under enormous pressure as the costs for essentials like shelter, food, and fuel continue to rise.
“It is logical that a lot of people will be looking at areas to start cutting back their spending and this has the potential to flow through parts of the Tasmanian economy.”
The TasTalks online survey comprised 448 Tasmanians aged 18 years old or over, and is weighted to state population statistics, Census 2021.
The survey took place from 27 September to 3 October 2022 using EMRS’ online Community Panel of Tasmanians, along with promoting the survey via social media platforms. To join EMRS’ Panel and participate in other short and exciting online surveys, visit: https://community.emrs.com.au