HOUSEHOLDS – ECONOMIC ASPECTS – AUSTRALIA

State of the Nation 25: Spotlight on Financial Risk

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 26-Aug-16

Roy Morgan Research CEO Michele Levine this week presented the latest State of the Nation Report in Melbourne and Sydney, with a special Spotlight on Financial Risk including Mortgage debt and stress, Income risks and the adequacy of retirement funding. Key findings of this in-depth industry spotlight include: Home ownership in Australia is likely to continue its downward trend whilst house price increases outpace the increase in household incomes; Mortgage stress levels are likely to remain elevated even with the likelihood of further interest rate reductions by the Reserve Bank of Australia (RBA) over the coming 12-18 months. Official Australian interest rates are already at a record low of 1.5% and likely to converge with the 0% interest rates found in comparable Western economies including the United States, United Kingdom, Canada and the EU; Household debt levels could become a risk for both households and banks should general economic conditions turn down; The reliance on dual incomes for home loans repayments by many Australian families is a risk in itself with the increasing trend towards part-time work throughout much of the economy and with the additional factor of low wages growth and many more. View the full release to see a comprehensive run-down of findings.

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ROY MORGAN RESEARCH LIMITED

Voters open to jobs message as the good times stall

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Original article by David Uren
The Australian – Page: 1 & 6 : 11-Jul-16

The average real household income in Australia has risen by just 1.2 per cent since mid-2011, according to an analysis by Ben Phillips of the Australian National University’s Centre for Social Research & Method. In contrast, real household incomes in mid-2011 were 17 per cent higher than in 2006. Meanwhile, wages have risen by just nine per cent since March 2012, while there has been a significant increase in costs such as childcare, gas bills and medical expenses over this period.

CORPORATES
AUSTRALIAN NATIONAL UNIVERSITY. CENTRE FOR SOCIAL RESEARCH AND METHOD, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Poor getting a foot on the ladder, according to RBA

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Original article by Jacob Greber
The Australian Financial Review – Page: 6 : 17-Jun-16

Researchers from the Reserve Bank of Australia (RBA) have found no evidence of growing inequality in Australia. A study published in the RBA’s quarterly research bulletin shows that the bottom 20 per cent of households experienced an increase in their wealth by more than 21 per cent between 2010 and 2014. Other social groups were less fortunate, with stagnation in wealth of the middle class and a fall in wealth of the richest 20 per cent of the Australian society.

CORPORATES
RESERVE BANK OF AUSTRALIA

Living standards at a five-year standstill

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Original article by David Uren
The Australian – Page: 1 & 2 : 12-Apr-16

Australian households’ disposable income rose by 22 per cent during the last five years of the government of former prime minister John Howard. However, data from the Australian National University’s Centre for Social Modelling shows that household income has barely grown in the last five years, when factors such as inflation and population growth are taken into account. Meanwhile, the household savings rate has fallen from 11 per cent of income to 7.6 per cent over this period.

CORPORATES
AUSTRALIAN NATIONAL UNIVERSITY. CENTRE FOR SOCIAL MODELLING, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN BUREAU OF STATISTICS

What a broad land tax would cost you

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Original article by Robert Harley
The Australian Financial Review – Page: 5 : 6-Apr-16

A McKell Institute report has described land tax as "equitable and efficient". However, while replacing stamp duty on property purchases with an annual land tax may have its merits, family homes are not subject to the land tax regime at present. Modelling by Deloitte Access Economics in 2015 concluded that a land tax would cost the average homeowner about $A2,360 a year. A report by KMPG has estimated that the annual land tax burden could be much higher for most homeowners in New South Wales.

CORPORATES
THE McKELL INSTITUTE, DELOITTE ACCESS ECONOMICS PTY LTD, KPMG AUSTRALIA PTY LTD, PROPERTY COUNCIL OF AUSTRALIA LIMITED, NSW BUSINESS CHAMBER LIMITED, COUNCIL OF SOCIAL SERVICE OF NEW SOUTH WALES

Assets back above pre-GFC peak

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Original article by David Uren
The Australian – Page: 4 : 5-Apr-16

Data from the Reserve Bank shows that the total value of Australians’ household assets compared with average household disposable income has risen above the high of 8.5 times recorded prior to the global financial crisis. This ratio declined to 6.8 times during the GFC. The figures also show that average debt comprises 21.6 per cent of the value of household assets, down from 23.7 per cent at the end of 2011.

CORPORATES
RESERVE BANK OF AUSTRALIA

Extending GST to education is fair, says PwC

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Original article by Jacob Greber
The Australian Financial Review – Page: 5 : 9-Oct-15

Economic modelling by PricewaterhouseCoopers shows that the Australian Government could raise an additional $A3bn a year by 2019-20 by broadening the goods and services tax to include education. The firm’s modelling also shows that the annual education expenses of people on low salaries would rise by $A19 a year, while those with high incomes would pay an additional $A221 a year.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, THE TAX INSTITUTE

GST less regressive than critics say

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 8-Oct-15

A Productivity Commission report concludes that households on low incomes pay about seven per cent of their earnings in the form of GST. This compares with around five per cent of the earnings of people on incomes exceeding $A150,000. The study refutes claims that increasing the GST would place the greatest burden on low-income households. The Productivity Commission stresses that further research on the issue is needed.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

More young singles, couples and parents now car-free while older homes hold on to their wheels

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 3-Sep-15

A Roy Morgan Single Source survey (April 2010 – March 2011 and April 2014 – March 2015) has found that an estimated 574,000 Australian households (6.3 per cent) now do not have a car, up from 490,000 (5.8 per cent) four years ago. A higher proportion of younger and mid-life households, ranging from Young Singles, Young Couples and Young Parents through to Mid-Life Families, now do not have car compared with 2011. Older Households – which make up around a third of the population – have bucked the trend, and are now less likely to be car-free.

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ROY MORGAN RESEARCH LIMITED

Purchasing power dives on lower $A

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 8-Jul-15

Australians may face a significant reduction in their living standards in coming years, due to factors such as a lower currency, slowing growth in wages and falling revenue from commodities. Australian households ranked fifth in the world in terms of global purchasing power in 2014. However, Deutsche Bank economist Adam Boyton expects the nation to be ranked in ninth position in 2015, and 17th within two years. The bearish forecast is based on data from the International Monetary Fund.

CORPORATES
DEUTSCHE BANK AG, INTERNATIONAL MONETARY FUND, RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY