With cost-of-living pressures affecting Australian household budgets, see below some survey figures just out, with comments from CPA Australia, below.
Results of CPA Australia survey:
CPA Australia Senior Manager Business and Investment Policy, Gavan Ord says:
“A recent CPA Australia survey of more than 1000 people found around one in ten households are cutting back on groceries as cost of living pressures bite.
“The majority of those surveyed said they were cutting back on luxury expenses such as holidays and gym memberships.
“It’s not surprising that people are cutting back on big ticket items like holidays but it’s concerning people are cutting back on groceries.
“Cash strapped people are also foregoing trips to the doctor and the dentist, with six responding they were cutting back on health and dental care to save money.
“Some are looking to save money by using their car less. A reported eight said they were cutting back on car and transport costs.
“After 10 consecutive interest rate rises we’re now seeing Australians from many different income levels being forced to cut costs where they can.
“This change in consumer behaviour is hitting business confidence. Over the past three years, business have had to adapt to COVID-19, supply chain pressures, skills shortages and higher costs. They will now need to adapt to a more cost conscious consumer to remain viable.
“Australia’s high inflation and soaring cost of living pressures are putting significant pressure on small businesses. Consumer confidence is declining and both shoppers and businesses are adjusting to manage rising expenses.
“We want the Federal Budget to include incentives for small businesses to seek advice from a trusted professional, such as an accountant. Businesses need support to navigate through these difficult times, especially as consumers start to cut back on spending.”