Aussies fearful of costs in uncertain environment

24 July 2020
| By Laura Dew |
image
image
expand image

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.” 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago