Income decline for millions of Australians, report finds

MILLIONS of Australians have experienced a drop in income over five years with people in Dandenong and the City of Casey among the worst affected. HERE’S WHY.

MILLIONS of Australians have suffered a drop in income in the past five years, a study has found, and many fear for their financial survival.

And the huge number of people who are financially worse off helps explain why many feel worried about rising prices, a researcher says.

At least 5.92 million Australians are living in households where income fell from 2011 to 2016, new analysis reveals.

BAREFOOT INVESTOR: POWER TO CHANGE LIES WITH YOU

HOW MUCH WE SPEND ON AVERAGE

The Australian Population Research Institute study found about one in five personal income earners — 3.34 million people — had a fall in income over that time.

Report author and Monash University research associate David McCloskey said lifestyle factors such as retirement, divorce, or leaving the workforce or reducing hours after having children, could not fully ­explain the magnitude of the decline.

About one in five personal income earners had a decline in income over five years, a report has found.

“The high numbers of losers in the Australian economy may help to explain the mood of the electorate, with high levels of uncertainty and anxiety about paying the bills now and surviving into the future,” Mr McCloskey said.

Victorian areas most ­severely affected by a “double whammy” of income decline plus increased cost-of-living pressures were Dandenong, Brimbank, Whittlesea, Melbourne, Monash, Knox, Whitehorse and Casey.

The Downward Economic Mobility in Australia report revealed income falls in both men and women across all ages, occupations and industries.

The earnings loss was estimated at $1.9 billion a week.

Uncertainty and anxiety about paying bills is at high levels.

Mr McCloskey said further investigation was needed to determine how much was due to choice and life-stage events, versus other reasons such as reduced bargaining power with employers, changes in the nature of work and demand for specific skills, or structural changes to industry. “The ultimate aim is to ensure growth of long-term, well-paying jobs in Australia,” he said.

Queensland and Western Australia had the highest proportions of earners experiencing income decline. Victoria had the least.

A Productivity Commission report concluded sustained economic growth over 27 years had significantly improved living standards for the average Australian.

But a survey commissioned by the Committee for the Economic Development of Australia had discovered only 5 per cent of people felt they had personally gained a lot.

One in three said they were finding it difficult to live on their incomes.

[e-mail]

@KarenCollierHS

MORE FINANCE NEWS:

HOUSEHOLDS BUYING FEWER CLOTHES, LESS FRUIT

SHOPPERS SNAP UP HOME BRAND GROCERIES