Financial Wellbeing in Tasmania Report: State’s cost of living pressures laid bare

Sociologist Hester Okwechime is one of many women across the state struggling to keep up with the soaring cost of living as a new report reveals a stark reality for many Tasmanians.

A new report has shed light on the enormous cost of living pressures many Tasmanians are struggling to deal with.

Despite paying “reasonable” rent, enjoying a flexible work situation, and having a strong support network, sociologist Hester Okwechime says cost of living pressures still make it hard for her to feed her family and save for a home deposit.

And, according to a new report commissioned by MyState Bank and housing and homelessness not-for-profit Colony 47, she is not alone.

The Financial Wellbeing in Tasmania Report, released on Thursday, found that 61 per cent of Tasmanians felt worse off than they did last year, and women, renters, and people aged between 35 and 49 were dealing with major challenges such as rising house prices, soaring rents and the overall cost of living.

Ms Okwechime, a single mother who lives at New Town with her three children, aged 8, 19, and 21, said she was “extremely fortunate” to have a landlord who “values my tenancy” and kept rent “reasonable”.

Sociologist Hester Okwechime at New Town. Picture: Chris Kidd

“The fact that the cost of living still affects my life just really shows you what a huge problem it actually is,” she said.

Recovering from cancer, Ms Okwechime has a goal of saving for a house deposit but said this was feeling like an increasingly remote possibility.

“With housing costs going up, the goal [of home ownership] is just getting further and further away,” she said.

“There are people who aren’t as lucky as me. [For] the average single mother, it’s an impossible task to eat well, save money, and work because you’ve got to put your children in child care.

“Between child care and rent, I don’t even know how they can afford to eat after that.”

3P Advisory undertook a 15-minute online quantitative survey of 500 people on behalf of MyState Bank and Colony47 to better understand the financial circumstances of Tasmanians. The survey was conducted from April 8-29 and informed the findings in the Financial Wellbeing in Tasmania Report.

The report found that more than 50 per cent of Tasmanian women were extremely concerned about their financial situation, compared to 39 per cent of men, while women under 50 with children were cutting back on health care costs and some women under 35 were moving back in with their parents.

MyState Bank CEO Brett Morgan and Colony 47 CEO Dianne Underwood. Picture: Chris Kidd

One in five mortgage-holders were in financial distress, 57 per cent of renters were extremely concerned about rising costs, and 20 per cent of respondents said they couldn’t raise $500 for an unforeseen expense within a week.

MyState Bank CEO Brett Morgan said the report highlighted the “urgent need for collaborative efforts to address these challenges and support the financial health and resilience of all Tasmanians”.

“Inflation and interest rates have put real pressure on many in the community, particularly those on fixed incomes facing big price increases for rent, food, healthcare and mortgage payments,” he said.

Colony 47 CEO Dianne Underwood said the number of Tasmanians with limited capacity to absorb financial shocks was alarming and partly explained why services such as hers were “experiencing unprecedented demand”.

“Increasing rents and lack of affordable housing have seen many Tasmanians ask for help who have never had to reach out before,” she said.

“We should be doing everything we can to stop people falling off the housing cliff because insecure housing and homelessness sit at the heart of so many issues including educational attainment, unemployment, crime, and mental health.”

Originally published as Financial Wellbeing in Tasmania Report: State’s cost of living pressures laid bare