Report: Mining Boom Has Positive Impact on WA, Queensland Household Finances
While residents of most Australian states are struggling with their finances, let alone save, the mining boom has made people from Western Australia (WA) and Queensland enjoy a comfortable income that enabled them to pay their debts and even save some money.
"Western Australians do reflect that on average, if you like, the investment boom that's taking place in Western Australia is flowing through into households and increased job security, higher incomes and higher levels of savings," ABC quoted MR Bank's chief economist Jeff Oughton.
However, the same is not true for residents of other Australian states. The bank survey found that 53 per cent of these households are not saving at all and 10 per cent are using their savings.
Mr Oughton blamed the situation to the high unemployment rate in some states such as South Australia, which led to a decline in the resident's financial comfort.
As a result of the gap in wealth distribution, 61 per cent of the survey respondents complained that Australia's national economy is too focused on mining. On the average, 20 per cent of the 1,000 adult respondents believe the resources boom made life worse for their families.
Ironically, the same outlook was stated by 27 per cent of respondents in WA and 36 per cent in Queensland. However, 52 per cent of WA residents thought otherwise which showed the polarisation of Aussies on the impact of the mining boom on their lives.
WA Mines Minister Norman Moore explained the high rate of state residents who said the mining boom failed to benefit them to inflation since the resources boom placed pressure on prices and the labour market which resulted in higher rents and cost of living.
Shadow treasurer Ben Wyatt said the survey confirmed that WA has a two-speed economy causing one-fourth of residents to be left behind financially.
Mr Oughton added that savings rate of Australians have gone up, but the majority are struggling to save each month. The report placed the current household savings ratio at 9.3 per cent in the year to June 2012 which translates into 9.3 cents of savings for every dollar of disposable income.
