More than three in five Western Australian households are experiencing at least one form of financial stress, according to CCIWA’s Consumer Confidence survey for the September quarter.
The survey of almost 1,000 WA households found the cost-of-living crisis was weighing heavily on consumer confidence, despite a slight improvement in the outlook since the start of the Middle East conflict earlier this year.
Almost two in five (38%) said their expenses exceeded their income each month, and 20% said they had been unable to pay bills on time.
Four in five or 80% of households surveyed said the cost of everyday items was weighing heavily on their budgets.
CCIWA’s Chief Economist, Dr Daniel Kiely, said interest rate increases were having an impact, even before last week’s rate hike.
“Six in ten (60%) of those surveyed said interest rates were weighing heavily on their confidence,” he said.
“Interest rates are now the highest they’ve been in 15 years, and with the prospect of more hikes before the end of the year, we can expect that pressure to increase.”
The survey also asked households about their spending habits over the next six months, with around half reporting they would cut discretionary spending to offset cost-of-living concerns.
Dr Kiely said the hospitality sector was likely to feel the impact as Western Australians tighten their belts.
“58% of those surveyed saying they would cut spending on cafes and restaurants over the next six months, which could have a significant impact on the sector heading into the festive period,” he said.
“Many consumers have told us they also planned to reduce spending on socialising, with 55% saying they’d spend less at bars, pubs and clubs.”
People in Western Australia overwhelmingly believe the state’s economy will be worse off if the GST share is reduced, according to a new survey by CCIWA.
The survey of almost 1,000 households in mid-August found significant concerns about the economic impact of a reduction in GST revenue, and the potential impact on services.
Almost 70% of those surveyed said they believed there would be a “moderate” or “significant” negative impact on WA’s economy over the next few years if WA’s GST share is slashed.
CCIWA Chief Economist, Dr Daniel Kiely, said people in WA clearly understand what is at stake.
“Despite promises from the Prime Minister that there would be no change to the GST while he is in office, it’s important to recognise that the GST deal is still under scrutiny from the Productivity Commission,” he said.
“More than 20,000 people have signed CCIWA’s petition calling for the GST safety net to remain in place, which shows how strongly people in WA feel about protecting our economy.”
The survey also asked which potential consequences of a cut in GST revenue would concern them the most.
Almost half (47%) said they were concerned about higher state taxes or household charges.
Concerns about reduced healthcare services were identified by 43% of those surveyed, while 29% said they were concerned about reduced cost-of-living assistance.
Dr Kiely said any reduction in WA’s GST revenue would negatively impact the state.
“The GST safety net helps to pay for the services and infrastructure we use every single day and without it, WA would be worse off,” he said.
“WA’s economy keeps the entire nation strong, but in order to do that we need to be able to support the population and businesses with the infrastructure and services that support such economic growth.”
