Australian households are better off than they have ever been before, but our lifestyle aspirations are compromising our disposable income, according to the latest AMP.NATSEM Income and Wealth Report.

 

The Prices these days! The cost of living in Australia explores how living costs had changed since 1984, finding that disposable income had increased 20 per cent of the last 27 years.

 

The report found that cost of living pressures continued with strong price growth since 1984 across everyday essentials including electricity, which increased 253%, rent prices grew 223%, mortgages increased 256%, petrol increased 208% and public transport costs jumped 287%.

 

The report concluded that households are spending significantly more on discretionary items, including private schooling, restaurant meals, childcare and tertiary education. The report also found that incomes have outpaced the costs of living since 1984.

 

While Australia enjoys petrol prices that are amongst the lowest in the world, the costs of services, particularly education, have increased strongly since the 1980’s.

 

Finally, and what will come as little surprise to their inhabitants, Sydney and Melbourne rank amongst the most expensive cities in the world, with the two cities hitting 7th and 8th respectively. However, the two cities also enjoyed amongst the highest incomes.

 

The full report can be found here