Aussies Struggle to Afford Groceries While Their Country is Deconstructed By James Reed
It is hard time for the ordinary Aussie. The first bad news is that according to Australian Bureau of Statistics (ABS), real household disposable income per capita collapsed by around 6 percent in the year to September 2023 to fall to 2012 levels. And Albo crows about economic progress, indeed, a boom! Deloitte Access Economics partner Stephen Smith said: "Households have been dealing with the cost-of-living challenges that elevated inflation and rising interest rates impose."
"At the same time, bracket creep is ratcheting up the average rate of tax paid, while aggregate measures of income and economic growth are being driven by population growth, not productivity."
What this decline means, in painful real terms, is a cost-of-living struggle. There is a battle to get the needed quantity of groceries, and to cope meal skipping has become more common, even for school children. This is the Third World at our doorstep.
To compound miseries, many of thecorporates who have made record profits, including supermarkets, banks, energy, childcare and car sales, have engaged in price gouging, to exploit economic vulnerabilities. A review, conducted by former Australian Competition and Consumer Commission (ACCC) chair Professor Allan Fels, found that "exploitative business pricing practices" have significantly added to inflation: "A significant part of the cost-of-living crisis has been caused by companies taking advantage of their market power and relying on gaps in Government policy to squeeze consumers and often suppliers to breaking point.'
"Reform to curb this is urgent." He recommended an independent National Competition and Prices Commission, drawn from the Commonwealth, states and territories."
That would be a good start, but we really need a government prepared to take a stand against the corporate elites, and that we do not have … yet.
"The latest Australian national accounts from the Australian Bureau of Statistics (ABS) showed that real household disposable income per capita collapsed by around 6% in the year to September 2023 to be tracking at around 2012 levels.
As you can see, Australia's decline in real household disposable income per capita was the largest in the year to September, some 7.8% worse than the average gain of 1.7% across the OECD.
"In the current environment, real household disposable income per capita is one of the best measures of how Australian households are feeling", Deloitte Access Economics partner Stephen Smith said.
"It calculates income after taking account of inflation and population growth, and after taking account of taxes and mortgage payments".
"Households have been dealing with the cost of living challenges that elevated inflation and rising interest rates impose".
"At the same time, bracket creep is ratcheting up the average rate of tax paid, while aggregate measures of income and economic growth are being driven by population growth, not productivity", Smith said.
To add further insult to injury, economist Chris Richardson projects that Australia's real household disposable income per capita won't recover to 2015 levels until 2026:
"In the current environment, real household disposable income per capita is one of the best measures of how Australian households are feeling", Deloitte Access Economics partner Stephen Smith said.
"It calculates income after taking account of inflation and population growth, and after taking account of taxes and mortgage payments".
"Households have been dealing with the cost of living challenges that elevated inflation and rising interest rates impose".
"At the same time, bracket creep is ratcheting up the average rate of tax paid, while aggregate measures of income and economic growth are being driven by population growth, not productivity", Smith said.
To add further insult to injury, economist Chris Richardson projects that Australia's real household disposable income per capita won't recover to 2015 levels until 2026."
"More and more Australians are struggling to afford their groceries , as fallout continues over the explosive recent report into price gouging across multiple industries.
Research from Finder found that 39 per cent of Australians - equivalent to 3.6 million households - say their grocery bill is a major financial stressor.
That's up from 29 per cent - or 2.7 million households - just two years ag o.
On average, Aussies claimed to spend $188 per week on groceries in February – that's $9776 per year.
And Finder also found 92 per cent of Australians had implemented shopping strategies to save money at the checkout.
"The rising cost of groceries is putting a significant strain on household budgets," Finder money expert Angus Kidman said.
"Many are at breaking point and in need of some reprieve."
He advised households to shop around for promotions and sales, as well as to switch to home brands and avoid impulse purchases.
"Australians are being overcharged by banks, energy companies, airlines and supermarkets who have exploited a lack of competition in crucial markets to push for bigger profits, according to a new report that has called on the federal government to step in and address price gouging.
The review, conducted by former Australian Competition and Consumer Commission (ACCC) chair Professor Allan Fels, found that "exploitative business pricing practices" have significantly added to inflation, and that new government policy is needed to remedy it.
"Australians are paying prices that are too high, too often," Fels said in a speech at the National Press Club this afternoon.
"Secondly, greatly strengthen competition policy to remove or weaken market power, which enables excessive prices to be charged."
Fels' review examined a range of industries including supermarkets, banks, energy, childcare and car sales, and received over 700 submissions since being announced last year .
After receiving over 750 submissions, Fels said reform needed to be implemented quickly.
"A significant part of the cost-of-living crisis has been caused by companies taking advantage of their market power and relying on gaps in Government policy to squeeze consumers and often suppliers to breaking point," he said.
"Reform to curb this is urgent."
He made 35 recommendations, including that Australia follow the European Union in outlawing excessive pricing, and the establishment of a new body to make up for the lack of government attention on high prices.
"I propose the establishment of an independent National Competition and Prices Commission, drawn from the Commonwealth, states and territories."
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