House of pain: Rate rises, soaring prices add $1150 a month to bills

South East Queensland families will have to find another $1150 a month as households feel the pain of the cost of living crisis.

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Queenslanders are forking out about another $1150 a month just to put food on the table, pay the bills and put a roof over their head, adding another $60 if they have children in private school, compared to a year ago.

The brunt of the pain being felt by households has added up after a year of mortgage rate increases, droughts and floods hitting grocery prices, the energy crisis and more.

The Reserve Bank of Australia will put up rates again on Tuesday, likely to 3.6 per cent, and it is tipped to reach at least 4.1 per cent.

Next week the Australian Energy Regulator will reveal how much more people will be paying on their electricity bills from July.

As people are making cutbacks, some charities helping those doing tough have revealed donations and fundraising have dropped off as people and businesses start feeling the pinch.

Treasurer Jim Chalmers. Picture: NCA NewsWire/Gary Ramage

Treasurer Jim Chalmers on Monday said global inflationary pressures were “being felt around the kitchen table” and that rising rates “makes life that little bit harder”, while Opposition Leader Peter Dutton accused the government of breaking its promise to cut power bills.

An Australian with a $500,000 mortgage at the beginning of 2022 was paying about $2203 on their monthly repayments, but if interest rates rise to 3.6 per cent on Tuesday, it will reach $3171 – an increase of $968 a month.

Australian Bureau of Statistics data shows the cost of milk, bread and cereals have risen by 10-12 per cent between January 2022 and January 2023, while meat, fruit and vegetables had gone up about 5 per cent.

This means the grocery bill for a family of four, spending $200 a week, are spending about $11.7 more a week or $47 a month.

Based on average petrol prices, the same family if driving two mid-sized sedans they are filling up twice a month are forking out another $28 a month.

Mortgage repayments are rising and the RBA is expected to put the cash rate up again on Tuesday. Picture: iStock

Price comparison website Canstar Blue’s research found that the average power bill in the South East rose from a market offer of $1301 for a year in February 2022 to $1661 in February 2023 – meaning families have to find another $30 a month.

Canstar Blue’s utilities editor Tara Donnelly said people could still cut down their bill by shopping around.

“If you haven’t compared your existing plan to the ones currently available, you might still be able to make some savings with a new plan,” she said.

cost of living art work

If a family was paying about $5000 a year in insurance, including home, car, CTP and health, they will be paying an average of $255 a year more or $21 a month, based on a 5.1 per cent increase reported by the ABS.

The Courier-Mail revealed in January that the cost of private school fees had risen 6.59 per cent to a median cost of $10,380 a year, or an additional $54 a month a family would need to find for each child.

Economics committee deputy chair Garth Hamilton. Picture: Kevin Farmer

A 34-year-old construction worker, who declined to be named, said she was living in Toowoomba but making the almost two-hour commute to Brisbane each day because it was unaffordable to live in the capital.

“I don’t have any extra money coming in,” she said.

“The money I was using to pay my car loan is now going towards other bills.

“I’ve had to cut back on Netflix, extra things you like to have and I don’t go out any more just to get by.”

Protea Place Women’s Support Centre chief executive Amanda Dalton said the centre had to cancel its major fundraiser for the year, an event that usually sells out in 48 hours, because people did not have the money to donate.

“People are feeling the pressure and that’s flowing through to businesses and people who would normally sponsor events,” Ms Dalton said.

“We’re seeing cohorts of women coming in who have never needed support services.”

Economics committee deputy chair Garth Hamilton said constituents were contacting him daily about cost-of-living pressures.

“If you continue to increase government spending, you will drive demand,” he said.

“If you put price caps or red tape in place, you choke supply. Neither leads to good outcomes.”