Households Face Sharp Income Drop and Soaring Costs, Sparking Major Living Standards Crisis
-
Household incomes fell sharply in 2022-23, with real household disposable income down 5.1% nationally. This has driven a major decline in living standards.
-
The fall was driven by removal of pandemic stimulus payments and soaring mortgage repayments due to interest rate rises.
-
Households are paying far more of their income in mortgage interest than before the pandemic. The spike in costs is equivalent to 7 years of rises in the early 2000s.
-
Wage growth has been weak, failing to offset the loss of stimulus and higher interest costs. Real wage compensation per capita rose just 0.9% nationally.
-
Households are going backwards financially across every state and territory, pointing to a major cost of living and declining standard of living crisis.