TasTalks – Cost of Living Survey Quarter 2 2022
28/02/2023
No relief in sight for most Tasmanians as cost of living pressures increase in the past quarter
Results from EMRS’ second quarterly TasTalks Cost of Living Survey found most Tasmanian households remain under pressure from the rising costs of the essentials of life. The increases have been felt most sharply in the costs for food and groceries, power and energy, and vehicle and transport costs.
Almost seven in ten households (69%) felt worse off financially over the past three months compared to the previous quarter. And three in five households currently report having less spare money to spend now compared to 12 months ago (61%).
Our December 2022 Quarter survey found mortgagees and renters feel particularly vulnerable. Successive, unprecedented RBA interest rate rises since May 2022 and limited housing supply are placing increasing financial pressure on both households.
Among mortgagees, 78% report that their repayments increased over the past three months, with 24% now experiencing mortgage stress through their loans consuming 30% or more of their annual household income.
Meantime, renters reported feeling under stress, with the limited housing supply sparking soaring rents across the state. The bleak picture for Tasmanian renters was evidenced by the high figure of 59% currently experiencing rental stress through having to spend 30% or more of their annual household income on rent.
“The research findings in this matter were so stark that we plan to investigate the so-called housing crisis in Tasmania in a forthcoming TasTalks,” said Paul Jamrozik, Managing Director, EMRS.
The latest TasTalks survey revealed further pressure points:
95% of Tasmanians report that they have been spending more on food and groceries over the past three months; and 84% expect their spend to increase over the next three months.
76% say they have been paying more to run their private vehicles; and only 7% agree that it is a good time to purchase a vehicle.
70% say their household has been spending more on power and energy over the past three months, and 67% expect increases over the next three months.
Only 14% agree that now is a good time to purchase a dwelling in Tasmania; and only 4% think it is a good time to borrow money.
The outlook of Tasmanian consumers overall is pessimistic. Well over half of those
surveyed think it likely that Australia will enter a recession in the next 12 months. In interviewing people directly on the street, some believe Australia is already in recession, but in denial.
Tasmanians most likely to face future hardship in affording living essentials were brought into sharp relief. Among those with an annual household income of under $40,000, 16% in total say they are in a bad or dire financial situation, unsure if they can pay all their bills or already unable to do so. Among renters, 15% in total share this view.
Among the age segments, the research showed that 35 to 44 year-olds are being hit particularly hard by the current cost of living pressures – a group that is comprised largely of recent mortgagees, with responsibilities as parents of young children. Three in four (76%) of this age group report that they now have less money to spend than 12 months ago. Beyond this group, 25 to 34 year-olds and 45 to 54 year-olds are under similarly high levels of financial stress.
EMRS Managing Director Paul Jamrozik said: “The combined 25 to 54 year-old segment of Tasmanians – most likely to be mortgagees, with dependants, and in working life – represent a significant proportion of the population who are struggling with the current increases in the cost of living.
“The economies they, along with renters and those on lower incomes, are likely to make – such as cutbacks in the consumption of fuel, power, food, and in their discretionary spending – mean negative repercussions for Tasmanian businesses and the wider Tasmanian economy.
“It is also important to stress further family and community impacts,” said Mr Jamrozik. “Many Tasmanians who are safer from the brunt of the cost of living pressures, for example by being home owners, will nonetheless be affected by those their children, grandchildren or other family members are facing. And many communities are grappling with the impacts of the increase in homelessness.
“The cost of living crisis is one that is being borne, directly or indirectly, by all.”
In this second of the EMRS TasTalks Cost of Living Survey series, 556 Tasmanians aged 18 and over and resident in all regions of the state took part, with the results weighted to the state’s population statistics (ABS Census 2021). The survey was conducted from 23 December 2022 to 9 January 2023 using EMRS’ online Community Panel of Tasmanians, along with promotion of the survey on social media platforms. To join EMRS’ Panel and participate in other short and exciting online surveys, visit: https://community.emrs.com.au
Media contact for further information:
Paul Jamrozik
Managing Director
pjamrozik@emrs.com.au