Survey Shows Australian Households Spending Wiser
It may come as a surprise to many households, but a recent survey revealed that Australian households' fuel and power bills are only taking up the same portion from our budget as they did six years ago, while petrol spending is even lower.
A survey by the Bureau of Statistics finds domestic fuel and power accounted for 2.6 per cent of household spending in 2009-10, 2.6 per cent in 2003-04 and 2.6 per cent two decades earlier in 1988-89.
Petrol accounts for 3.09 per cent of spending, down from 3.36 per cent.
This is the only comprehensive survey on household spending, conducted once every six years.
Household income has rose 50 per cent since 2003-04, compared to hike of prices which have increased 19 per cent. Spending grew 38 per cent.
It may be recalled that during a pre-election debate, Tony Abbott said he was worried about the price of groceries, particularly bread. But bread accounts for less of Australians' spending than it did, sliding from 0.67 per cent to 0.57 per cent; food in general has slipped from 17.1 to 16.5 per cent.
The survey reveals that the big unavoidable expense that is truly costing the households more is housing, whether paid for by a rent or mortgage. From 16 per cent six years ago, housing now accounts for 18 per cent of total household spending, which reflects a new record high. School fees, as well as childcare charges, are also taking up more of the budget allocation at home.
The survey noted that other increased spending only reflects changed lifestyles and preferences. The households were spending more at cafes and restaurants today than six years ago, and estimates are up from 2.1 per cent to 2.6 per cent. Other areas that get more of the household's budget share today than six years ago are salons and hairdressers, pay per view TV and high-speed internet connections.
The families today are also spending much less on clothes and shoes; down from 4 per cent to 3.6 per cent, the same drop noted for spending on household furnishings.
While alcohol is just as important to the households as before - accounting for 2.6 per cent of the budgets, which is the same allocation for household energy - tobacco has become much less important, with thinning allocation from 1.3 to 1 per cent of total spending.