Cost of living, personal debt distress hits record high: new survey

Stress caused by the rising cost of living is escalating across Aussie households as new data shines a light on how big an issue it has become.

One in two Australians are experiencing elevated cost of living distress, sparking fears inaction could lead to further increases in suicide rates.

The latest quarterly Suicide Prevention Australia Community Tracker shows the largest increases in living distress during the March quarter were among full time workers and families with children under 18 living at home.

Middle Australia is driving the record rates of cost of living and person debt distress, which comes amid a rise in unemployment.

Suicide Prevention Australia CEO, Nieves Murray, has issued an urgent plea for Australians experiencing distress to seek help early.

“With federal and state government budgets, and further cost-of-living relief still months away, it’s clear more needs to be done to help ease the financial and mental distress of Australians right now,” Ms Murray said.

People struggling with cost of living pressures are being urged to seek help. Picture: iStock

“We know it’s two to three years after a critical event like a pandemic or environmental disaster that suicide rates often begin rising.

“The fact we are seeing cost-of-living distress continuing to escalate despite a softening in inflation and interest rates should be of real concern for our political and corporate leaders.”

At least 50 per cent of respondents reported above normal levels of distress, up 4 per cent in the past 12 months.

Cost-of-living and personal debt were also the main cause of elevated distress among Australians reporting suicidal behaviours, 58 per cent, as well as from those seeking help from frontline suicide prevention services, and clinical services.

The two issues now more than double other key economic and social determinants of suicide, such as housing access and affordability, social isolation and loneliness, relationship breakdown, drugs and alcohol.

The rates of distress rose 11 per cent to 51 per cent in households earning over $100,000, and 12 per cent to 54 per cent among those earning $150,000 over the past year.

Cost-of-living and personal debt were the main cause of elevated distress among Australians reporting suicidal behaviours. Picture: iStock

The Albanese government last month passed its overhaul of the stage three tax cuts in an attempt to help middle Australia, which is coming under increasing strain from skyrocketing grocery, fuel and utility bills.

Geelong woman Mackenzie Sinclair, 19, said she experienced distress from cost of living and housing pressures last year after a medical condition left her unable to work and put her in hospital for six months.

“I was lucky that I was already in hospital at the time so I had somewhere safe but I had to wait a long time to even see a housing worker and that made me really down,” she said.

“I didn’t see a way out and I was very worried I was going to get to the point where I didn’t have somewhere to live.

“It did put me into a very dark place and I was already struggling.”

Ms Sinclair said a lot of people told her the stories made them feel heard.

But Ms Murray said she was concerned that one in three people, or potentially hundreds of thousands of Australians in distress weren’t seeking help.

“Particularly given this is coming on top of three years of fires, floods and social isolation that have already put a significant strain on the community’s physical and psychological resilience,” she said.

“That’s why we need to accelerate the current rollout of a whole-of-government, not just mental health approach to suicide prevention.

“This includes national suicide prevention legislation requiring that key economic and social policies don’t have unintended consequences.”