A survey of Australian adults regarding their experience of the cost of living crisis shows that the decline in living standards and the corresponding growth of poverty and inequality is a core concern for many Australians, who are reducing spending, including on essential services. 

The respondents to this survey supported a suite of policy initiatives designed to both reduce the cost of living and to increase wages and income supports. In their view, addressing the cost of living crisis requires a multi-dimensional approach, rather than a singular reliance on high interest rates to slow inflation.

Findings

• Almost three-quarters (72%) of respondents felt their wages had grown slower than prices over the previous year.
• Over half of respondents (53%) said their household’s financial situation was worse that it was two years ago.
• The cost of living crisis has had differential impacts. Because it has affected lower-income Australians most severely, the cost of living crisis has exacerbated inequality.
• Six out of 10 (60%) of respondents identified groceries as the purchase where they have most noticed higher prices followed by utilities (21%) and transport (7%).
• The most common strategy adopted by respondents was drawing down savings or superannuation balances (26%).
• The next most common was undertaking more paid work: either working more hours in an existing role (18%), or taking on a second or additional job (15%).
• 15% of Australians borrowed money to help cover higher expenses.
• Many are reducing spending on essential services, including home heating and cooling (37%), healthy food (29%), and visitsto the doctor (26%).