THE Australian Bureau of Statistics (ABS) has released new figures showing a 6.9 per cent increase in living costs for employee households in the year to December 2023.<\/p>\n
The data comes after the Albanese government’s revamp of the Stage 3 tax cuts to alleviate cost-of-living pressures for an estimated 13.6 million taxpayers.<\/p>\n
Initially legislated before COVID in 2018, the Stage 3 tax cuts are being adjusted to reflect the present economic landscape.<\/p>\n
ABS head of prices statistics, Michelle Marquardt said there had been a significant rise in annual living costs.<\/p>\n
“Increases in annual living costs ranged from 4.0 per cent to 6.9 per cent depending on the expenditure patterns of the different household types, compared to a rise of 4.1 per cent in the Consumer Price Index (CPI) in the December 2023 quarter.<\/p>\n
“Employee households recorded the largest annual rise in living costs, though the rise this quarter has eased from a peak of 9.6 per cent in the June 2023 quarter.”<\/p>\n
Ms Marquardt noted self-funded retiree households saw a smaller increase in their living costs compared to other households or the CPI.<\/p>\n
The ABS report also identifies insurance and financial services, housing, and food and non-alcoholic beverages as primary factors driving the yearly increase in living costs.<\/p>\n
Insurance prices saw a record increase of between 16.6 per cent and 17.3 per cent across household types.<\/p>\n
“Higher insurance premiums across house, home contents and motor vehicles contributed to the increase in living costs for all household types over the year,” Ms Marquardt said.<\/p>\n
“Higher prices for rents, reflecting a tight rental market, and meals out and takeaway foods also contributed to rises in living costs.”<\/p>\n
A key difference between the Living Cost Indexes and the CPI is that the Living Cost Indexes account for mortgage interest charges instead of the cost of building new dwellings.<\/p>\n
Employee households felt the most significant impact from rising mortgage interest charges, which make up a larger portion of their spending compared to other household types.<\/p>\n
In contrast, self-funded retirees, who tend to own their homes, were less affected by increases in mortgage interest charges or rents.<\/p>\n
“Mortgage interest charges rose 40.3 per cent annually, down from a peak of 91.6 per cent in the 12 months to the June 2023 quarter,” Ms Marquardt said.<\/p>\n
Corangamite Labor federal member Libby Coker spoke about the government’s reform plans in Parliament on Tuesday.<\/p>\n
“On July 1 this year, every Australian taxpayer will get a tax cut,” she said.<\/p>\n
“For an Australian worker on the average wage, this means $1,500 in their pocket.<\/p>\n
“$1,500 they would not have received under the former Coalition government’s plan.”<\/p>\n
“These tax cuts are aimed squarely at people who work hard to make a difference for themselves and their family.”<\/p>\n","protected":false},"excerpt":{"rendered":"
THE Australian Bureau of Statistics (ABS) has released new figures showing a 6.9 per cent increase in living costs for employee households in the year to December 2023. The data comes after the Albanese government’s revamp of the Stage 3 tax cuts to alleviate cost-of-living pressures for an estimated 13.6 million taxpayers. Initially legislated before […]<\/p>\n