- 47% of Australians say cheaper fuel is their top priority
- Older Australians, naturally, said their top priority is a higher pension
- Stacking fuel discounts, negotiating salary and renting out a room are suggestions from Canstar in how find relief from the soaring cost of living
Financial comparison site Canstar has found affordability, such as lower fuel prices, is the top concern Australians want addressed in tonight’s budget.
The survey, which featured responses from near 2,500 adults, noted more affordable fuel was the top priority for 47% of Australians.
Cutting income taxes for lower-income earners was in second place (30%) followed by a one-off cost of living support payment (28%), a boost to the age pension age (28%) with wage growth (26%) in fifth place.
“Almost all generations have affordable fuel at the top of list of priorities they want addressed in the Federal Budget apart from those aged 70 years or more who naturally would like to experience a boost to the age pension,” said Effie Zahos, Canstar’s Editor-at-Large and money expert.”
Ms Zahos, however, warned that “sugar hits” should not be expected in the budget.
“One-off cost of living support payments that could cover fuel, energy bills and groceries would add to our inflation rate and are very likely off the table. This Budget is about focusing on cost of living relief that won’t further add to the country’s inflation issues,” she said.
“Tax relief is top of mind for almost one-third of Australians given this will be the last year of the low to middle income tax offset.
“Low income earners will be looking for cost of living relief by paying less tax. If wage growth isn’t on the cards for some time then tax relief could be an alternative. Either way the Budget goes, our tax system is likely in need of an overhaul.”
Effie Zahos, Canstar Editor-at-Large and money expert
Fuel and wage growth priority for under 40s
While for the younger generations under 40 years of age fuel and wage growth were the top on the priority list, the findings noted that the higher the income, the bigger the concern for wage grow seems to be, according to Ms Zahos.
“Those earning under $50,000 don’t consider a focus on wage growth as much of a priority as someone earning $120,000,” she said.
“The more you earn the more you spend could be ringing true for these Australians and exacerbating the cost of living pressures.”
“Without a focus on wage growth, workers will need to do their own heavy lifting and if negotiating a pay rise doesn’t pan out then consider all your options such as reduced working hours for the same pay to give you time to pick up extra hours elsewhere or asking them if they will cover the cost of your car insurance each year.”
Tips on how to deliver budget relief
Ms Zahos said that while the budget may not deliver on hopes for cost of living relief, there are many ways you can give yourself some budget relief.
Tips include stacking fuel discounts and renting out a spare room.
“There are government benefits, rebates and support payments you might be able to claim. Don’t forget to use your seniors card, concession card, store loyalty cards and any other options you have to get a discount – everything counts when living costs are piling up,” she added.
- Stack fuel discounts. Supermarkets, car insurance providers an the local petrol station could be offering discounts in exchange for your loyalty. The most popular is Coles and Woolworths’ 4 cent vouchers, which is applicable once you spend $30 or more on groceries. For a large family car, Canstar has found around $2.52 per tank could be saved using these vouchers.
- Negotiate salary. Before heading into a salary negotiation, it is important top do your homework. You should use an online salary comparison tool to know what other people are earning. As a plan B, plan to upskill and reskill. Alternatively, in lieu of a pay increase, see if your employer will offer other monetary benefits such as paying for your car or health insurance.
- Rent out a room. Data from the Australian Bureau of Statistics (ABS) notes that 77% of Australian households have at least one spare bedroom. According to Airbnb data, renting out a room via Airbnb could earn an average of $50 per night in Sydney $39 per night in Melbourne or $36 in Brisbane. Even if you rented out a room for three quarters of the month, this would equate to $800 or more per month. Of course, more research is needed as this could impact home and contents insurance, and rental income is taxable.
Survey findings
| What are you hoping will be addressed in the Federal Budget to help with cost of living pressures? | National | 18 to 29 | 30 to 39 | 40 to 49 | 50 to 59 | 60 to 69 | 70+ |
| Make fuel more affordable | 47% | 46% | 38% | 39% | 52% | 58% | 53% |
| Cut income taxes for lower income earners | 30% | 32% | 27% | 32% | 33% | 32% | 26% |
| Introduce one-off cost of living support
payments |
28% |
27% |
23% |
30% |
41% |
31% |
28% |
| Boost the age pension | 28% | 10% | 14% | 20% | 28% | 51% | 61% |
| Focus on wage growth | 26% | 41% | 30% | 30% | 22% | 15% | 8% |
| Introduce higher income taxes for higher
earners |
21% |
18% |
14% |
19% |
20% |
30% |
28% |
| Reduce the cost of childcare | 12% | 20% | 15% | 10% | 7% | 7% | 6% |
| Nothing, easing pressures will increase spending, push up inflation and see the Reserve Bank continue to increase interest rates |
10% |
4% |
12% |
11% |
7% |
11% |
12% |
| Don’t know | 10% | 11% | 12% | 9% | 16% | 6% | 7% |
Source – Canstar
| What are you hoping will be addressed in the Federal Budget to help with cost of living pressures? | $0 to
$29,999 |
$30,000 to
$49,999 |
$50,000 to
$79,999 |
$80,000 to
$119,999 |
$120,000+ |
| Make fuel more affordable | 51% | 51% | 52% | 45% | 36% |
| Cut income taxes for lower income earners | 29% | 29% | 35% | 28% | 29% |
| Introduce one-off cost of living support payments | 41% | 34% | 26% | 27% | 20% |
| Boost the age pension | 42% | 45% | 29% | 17% | 14% |
| Focus on wage growth | 20% | 18% | 28% | 26% | 33% |
| Introduce higher income taxes for higher earners | 24% | 27% | 22% | 17% | 15% |
| Reduce the cost of childcare | 12% | 10% | 12% | 14% | 13% |
| Nothing, easing pressures will increase spending, push up inflation and see the Reserve Bank
continue to increase interest rates |
4% |
6% |
8% |
9% |
17% |
| Don’t know | 9% | 9% | 9% | 13% | 8% |
Source – Canstar
