Aussie Incomes Take a Nosedive Amid Global Struggles
Aussie Incomes Take a Nosedive Amid Global Struggles
6
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
In an unsettling turn of events, Australian households have experienced one of the most dramatic drop-offs in real per capita household disposable incomes globally.
Recent data indicates that Australian families are grappling with some of the steepest reductions in real per capita income levels since the early days of the pandemic.
According to the Australian Bureau of Statistics (ABS), the national accounts for the March quarter revealed a startling 7.6% decline in annual real per capita household disposable incomes from their peak in June 2022. This has set incomes back to levels seen in early 2018.
Furthermore, this troubling trend isn't exclusive to disposable incomes-real wages in Australia are also facing a significant downturn. Adjusted for headline CPI inflation, real wages have plummeted 7.1% from their high in June 2020, underscoring the pressures on working Australians.
The Organization for Economic Co-operation and Development (OECD) has reported similar findings in their latest employment outlook, showcasing Australia's unfortunate position among the worst-hit nations in terms of real wage declines.
As one of 16 member nations whose real incomes have regressed since end-2019, Australia falls well short of the 3.5% real wage growth average recorded across OECD countries during the same period.
"This marks one of the biggest falls in real wages amongst OECD countries," the organisation stated, spotlighting the severity of Australia's economic circumstances.
The Federal Budget released in May forecasts that real wages in Australia will likely rebound to 2014 levels by mid-2028, cautioning that the nation may lose up to 14 years' worth of advancements in living standards if projections hold steady.
Notably, even with this estimated recovery, mid-2028 real wages are anticipated to be 4.3% below their June 2020 peak, highlighting the long and arduous road ahead for Australian wage growth.
This bleak outlook implies that Australians could face a decade-long hurdle in restoring their pre-pandemic wage levels, painting a challenging picture for the nation's economic future.
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at curbing potential risks in the housing market. Effective February 2026, APRA will implement a cap limiting the proportion of new home loans with high debt-to-income (DTI) ratios. This move is designed to promote responsible lending practices and ensure the stability of the financial system. - read more
The Australian Securities and Investments Commission (ASIC) has released preliminary insights from its comprehensive review of the motor vehicle finance sector, uncovering concerning trends that necessitate immediate attention from both lenders and consumers. - read more
The Australian Automotive Dealer Association (AADA), in collaboration with AutoGrab, has released the 2024 Year That Was Automotive Insights Report (AIR), providing a comprehensive analysis of the used car market's performance and offering projections for the year ahead. - read more
In a significant development within Australia's auto finance sector, non-bank lender MONEYME has successfully priced a $455.4 million asset-backed securitisation (ABS) for its secured car loan product, Autopay. This transaction marks the company's second major auto bond deal, following a $517.5 million transaction earlier in the financial year, underscoring MONEYME's rapid expansion and growing influence in the market. - read more
The Australian Securities and Investments Commission (ASIC) has recently unveiled findings from its comprehensive review of the motor vehicle finance sector, highlighting concerning trends that are likely to prompt a tightening of lending practices across the industry. The review revealed that nearly half of all consumers who defaulted on their car finance repayments did so within the first six months of the loan term. - read more
In a landmark decision, ANZ Bank has agreed to pay a record-breaking A$240 million (approximately US$160 million) fine for a series of serious regulatory breaches. This penalty underscores the growing emphasis on compliance and accountability within Australia's financial sector. - read more
The Australian Securities and Investments Commission (ASIC) has commenced a thorough review of the motor vehicle finance sector, focusing on strengthening consumer protections and ensuring industry compliance with responsible lending obligations. This initiative aims to address potential risks and improve the experiences of borrowers across Australia. - read more
Buying your first car is an exciting milestone that can offer a sense of independence and freedom. Whether you're envisioning weekend getaways or a smoother daily commute, the joy of car ownership holds a special thrill. However, alongside this excitement, it is crucial to approach this journey with awareness and preparation to ensure you make a smart financial decision. - read more
Embarking on the journey of car ownership comes with its share of responsibilities, one of which is securing affordable insurance. Understanding the intricacies of insurance rates is central to managing this recurring expense effectively. Insurers take into account numerous factors when determining your premium, including but not limited to driving history, vehicle type, and geographic location. - read more
If you're in the market for a new car, you're probably wondering what you need to do to get the best car loan. It's no secret that the car dealership will try to sell you a loan, but you don't have to take their offer! In fact, you can get a much better loan if you know what you're doing. - read more
Stepping into the world of self-employment can be a profoundly liberating experience, offering greater flexibility and the potential for financial independence. However, when it comes to securing finance for substantial purchases like a vehicle, self-employed individuals may face unique hurdles. Traditional lenders often favor those with a stable employment history and regular income statements, which can put the self-employed at a disadvantage. - read more
The cost of buying a car is a major financial commitment, so it's important to consider all of your options before making a purchase. In this article, we look at some of the pros and cons of the most common car financing options, including leasing, hire purchase and paying cash, and what difference it makes whether you are buying a new or used vehicle. - read more
When it comes to car loans, one of the first things you need to determine is your budget – how much can you afford to borrow and still comfortably make your monthly car loan repayments? - read more
Car loan refinancing involves taking out a new loan to pay off an existing car loan. This can be done with the same lender or a different one. The primary goal is often to secure better interest rates, alter the loan term, or reduce monthly payments. - read more
Start Here !
All quotes are provided free and without obligation. We respect your privacy.
Knowledgebase
Personal Loan: a loan that is granted for personal use, normally unsecured and granted by a lender on the borrower's integrity and capacity to repay