The Squeeze is On: Australians Grapple with Soaring Costs and Shifting Priorities
Across Australia, individuals are meticulously tracking their spending, making difficult choices, and re-evaluating what constitutes a “splurge” as the cost of living continues its relentless climb. From pensioners to young families, the financial pressures are palpable, forcing a re-evaluation of everyday life and long-term aspirations.
For 83-year-old retiree Suzenne A’Neile, living in Melbourne’s outer suburb of Ardeer, meticulous budgeting is not just a habit, but a necessity. She diligently logs her expenses in a ledger, breaking them down by category. Receiving approximately $1,100 each fortnight from her aged pension, Suzenne often finds herself with as little as $300 left after covering essential costs like healthcare and groceries. This tight financial situation, exacerbated by interest rate rises that initially threatened her mortgage, has led her to a place where her family ultimately helped her pay off her home loan. “I guess, I’d pat myself on the back and say, ‘Look, I haven’t had to borrow any money from anybody to pay any of my expenses,'” she reflects. Her biggest outlays remain groceries, electricity, and water bills, areas where she constantly seeks to economise, while still prioritising quality food for her health. Despite her family’s suggestions of at-home care or an aged care facility, Suzenne is determined to remain in her own home for as long as possible, managing her anxieties with a pragmatic outlook: “I think there is a lot of stuff that we can do.”
The Australian Bureau of Statistics’ Living Cost Indexes paint a stark picture, revealing cost spikes of 2.3 to 4.2 per cent last year. Aged pensioners bore the brunt of these increases, with annual housing costs, a significant expense, growing by a substantial 9.1 per cent for those relying on government payments.
The Carer’s Dilemma: Sacrifices and Hope in Queensland
Joanna, a 49-year-old single mother from Rockhampton in central Queensland, embodies the challenges faced by many carers. She dedicates her life to caring for her 13-year-old son, who lives with autism and ADHD and requires constant supervision. Her fortnightly carer’s pension of around $1,600 is largely consumed by rent, with a significant increase looming. Joanna herself battles arthritis and cluster migraines, but the cost of specialist medication and appointments is prohibitive. “I’m just sort of caught in this trap… if I work, I have the money to be able to pay for things like pain specialists and rheumatology appointments,” she explains. “But if I don’t work, I can’t pay for those things and I have to be on a wait list for between two to five years.” The prospect of surrendering her private health insurance, a vital safety net in a regional area, is a difficult consideration. Her hope for the future lies in her son’s condition improving to a point where she can return to full-time work, enabling her to save for a home deposit and achieve financial stability before retirement. “There’s definitely hope. There’s always hope.”
Dreams Deferred: Housing Insecurity and Health Fears in WA
In Lakelands, Western Australia, Lisa Bingham, a 46-year-old mother of seven, faces her own set of formidable challenges. Her fortnightly welfare payments of $2,100 are dwarfed by her $1,200 fortnightly rent for two rooms in a community housing share property. The dream of owning her own home, a desire to provide her children with the stability she herself lacks, feels increasingly out of reach. “I want my own kids to have that… I can’t do it. I can’t physically afford to do it,” she states, her voice tinged with worry. The reality of her financial situation is stark: “It scares the crap out of me, because I’m thinking, ‘How the hell am I gonna survive?'” Lisa frequently goes without meals to ensure her children are fed and has relied on church food hampers. Last year, she was forced to cut the family’s private health insurance. Living with sickle cell disease, a genetic disorder causing severe pain and anaemia, Lisa recently faced the terrifying prospect of a cervical cancer diagnosis, a development she anticipated would completely derail her already precarious budget, leading to “astronomical” debt. Her fears have since been confirmed. As expenses mount, car registration is now on the chopping block. The constant anxiety of budgeting and the lack of funds for any social activities are taking a significant toll on her family’s well-being.
The Golden Years Under Pressure
Older Australians, like those who contacted the ABC, are particularly feeling the financial squeeze. COTA Australia’s “State of the Older Nation” report echoes these sentiments, highlighting concerns around prescription medication costs, social isolation, and escalating energy bills.
Geoff Harrison, a 72-year-old retiree in Goonellabah, regional NSW, lives on a $1,100 fortnightly pension. He meticulously tracks his expenses and notes the rising costs, admitting he has had to forgo activities he once enjoyed, such as theatre, cinema, and dining out. “I don’t know what would help… because you work out what you’re cutting out,” he says. His gym membership, crucial for maintaining his fitness, is now under threat. For affordable getaways, Geoff relies on his small caravan, exploring national parks. He’s observed that even these inexpensive escapes are becoming crowded, indicating a broader trend of people seeking budget-friendly holiday options.
Prioritising Family Over Finances: A Researcher’s Choice
In Brisbane, 38-year-old postdoctoral researcher William Kwan, earning $101,000 annually, and his wife have made a conscious decision to prioritise having a stay-at-home parent for their two young children, aged four and six. This choice, stemming from their own positive experiences with a stay-at-home parent, means foregoing the financial benefits of dual incomes and the common practice of full-time childcare or after-school care. “We know we could change our lifestyles dramatically to bring in more money to our house… And it’s really something neither my partner nor I want for our kids. So we’re opting to do it the hard way.”
This decision contrasts with the prevailing trend in Australia, where, according to the Australian Bureau of Statistics, nearly 73 per cent of two-parent households had both parents employed in 2025, a figure that has steadily increased since 2005. William notes that every expense in their household is child-focused, from nappies to the ever-increasing cost of fruit. He humorously equates the cost of everyday items to punnets of raspberries, often opting for fruit over a beer to feel like a more responsible parent. While this thrifty approach has brought them closer as a family, it has also led to social isolation. They are currently planning for William’s mother to visit from Melbourne and his wife, originally from the US, has not seen her family since before the pandemic. “We’re just trying to single-income it and have my partner be a full-time stay-at-home parent, so she can be active with their school excursions, after-school care, stuff like that,” William explains. “And I just do my best to burn the candle and give us food.”
