For many Australians, the numbers no longer seem to add up. Rising costs are outpacing incomes, forcing difficult choices in everyday spending. Housing, in particular, is taking a heavier toll. And across the country, the sense of financial strain is becoming hard to ignore.
A Majority of Australians Feeling Financially Worse Off
A national survey reveals that 73% of Australians believe they are financially worse off than a year ago. This perception cuts across different demographics, suggesting a broad-based shift rather than an isolated trend.
Several factors are driving this sentiment. Interest rate increases have raised borrowing costs, while fuel prices continue to weigh on household budgets. The Reserve Bank of Australia (RBA) recently lifted the cash rate to 4.1%, and major banks including ANZ, Commonwealth Bank and NAB are already anticipating another 0.25% rise.
For many households, these adjustments are not abstract. They translate directly into higher monthly expenses — sometimes by hundreds of dollars.
Housing Costs Taking a Growing Share of Income
Housing remains at the centre of financial pressure. According to the survey conducted by AMPLIFY, around 70% of Australians are experiencing housing stress, reports Yahoo Finance.
The standard benchmark defines stress as spending more than 30% of income on housing. Yet a growing number of households exceed that threshold, with some allocating over 50% of their income to rent or mortgage repayments.
At that level, financial flexibility becomes limited. Everyday expenses — groceries, transport, utilities — start to compete with essential housing costs. And when something unexpected happens, there is often little buffer left.
Cost of Living Dominates Budget Expectations
With the federal budget approaching in May, public expectations are increasingly focused on cost-of-living relief. More than 40% of survey respondents identified it as their top priority.
The federal budget sets the direction for government spending, taxation and borrowing. In the current context, it is being closely watched as a potential lever to ease pressure on households.
According to AMPLIFY CEO Georgina Harrisson, many Australians are constantly reassessing their finances, deciding where to cut back in order to keep up with rising costs. It’s not a one-off adjustment — more like an ongoing recalibration.
More Australians Turning to Multiple Jobs
Another sign of financial strain is the rise in multiple jobholding. Data from late 2024 shows that over one million Australians are working two or more jobs.
This shift reflects a simple reality: for some, a single income stream is no longer sufficient. Additional work can help offset rising costs, but it also raises questions about workload, stability and long-term sustainability.
A Persistent Pressure on Household Finances
The broader picture points to a sustained squeeze on household finances. Housing costs, in particular, remain a major contributor to both inflation and individual financial stress.
There is no immediate indication that this pressure will ease quickly. Much will depend on future interest rate decisions and policy responses in the upcoming budget.
For now, many Australians are adapting as best they can — adjusting spending, rethinking priorities, and, in some cases, simply trying to keep pace.
