Aussies fearful of costs in uncertain environment
Some 40% of Australians say they are living paycheque to paycheque in this uncertain environment, according to Finder, as Treasurer Josh Frydenberg announces Australia’s largest budget deficit in history.
Yesterday, the Treasurer said the budget deficit was now in excess of $86 billion which was mostly due to the temporary JobKeeper scheme. Unemployment was forecast to rise from 7.4% currently to 9% by the end of 2020.
According to Finder’s consumer sentiment tracker, 42% of people were living paycheque to paycheque and over half feel they are in a worse financial position than a year ago.
However, they were managing to save more with the average saving in June rising from $670 to $793. Job security also rose from 53% in April, its lowest point, to 63% of people feeling secure in their job in July.
Graham Cooke, analyst at Finder, said: “Aussie households are feeling the pressure with millions of people concerned they will be unable to afford basic necessities once the handouts dry up.
“While the Government’s claims of their effectiveness are up for debate, the most important thing to say is that all the positives in terms of recovery are dependent on COVID-19 disappearing and Victoria starting to open up again.”
AUTHOR
Laura Dew
Recommended for you
The Federal Court has made interim travel restraint orders against two Falcon Capital directors, while also freezing one director’s assets.
For the 2025 financial year, all but one listed advice licensee has reported double-digit share price growth – but which licensee has seen the best performance and what activities have they enacted during the period?
Evidentia Group has confirmed its new executive leadership structure, having been formed from the merger between Evidentia and Lonsec Investment Solutions, to shape the future of managed accounts.
CC Capital, the last remaining player in the bid to acquire Insignia Financial, is still yet to finalise its offer, the firm has informed the market.
