Nearly four out of ten Western Australians would need to seek financial assistance if faced with an unexpected $500 bill, according to new research which reveals the extent of financial hardship faced in WA.
The Cost of Living Survey Report, commissioned by the Financial Counsellors’ Association of Western Australia (FCAWA) and conducted in July, has exposed the harsh impact of persistently high living costs on the community.
Out of 1,074 respondents aged 18 and above, 37 per cent said they would be unable to cover an unexpected $500 bill without borrowing money, selling assets, or using a credit card, further increasing their debt. Around one in five respondents reported constant financial pressure and difficulty in paying their existing bills.
When asked about the most pressing issues facing Western Australia, 73 per cent of respondents identified ‘cost of living’ as one of the top three concerns, followed by ‘housing’ and ‘health’.
Over half of the respondents admitted they had significantly cut back on entertainment and eating out in the past year but alarmingly, 51 per cent are having to make the decision to cut back on life’s basics necessities by eating less food and less nutritious food.
While a majority of respondents believed that the Federal Government has a key responsibility in addressing cost-of-living issues, an overwhelming number, 87 per cent, felt the State Government should be doing more to alleviate these pressures.
There was also a desire to see cost of living relief better targeted to those who need it most: All age groups surveyed said the State Government should prioritise cost of living support for those on lower incomes.
Western Australian Council of Social Service (WACOSS) Chief Executive Officer Louise Giolitto described the findings as both alarming and unsurprising.
“This paints a stark picture of the financial state many Western Australians find themselves in. General expenses have increased significantly in just the last three years. $500 doesn’t go nearly as far as it once did. Yet, having even that amount in savings seems out of reach for many in our community.
“This report highlights the scale of financial hardship in Western Australia, which is at an unprecedented level.
“Now, more than ever, we need to see more effective and targeted relief for those doing it toughest in our community. Sadly, far too many Western Australians fall into this category.”
FCAWA Executive Officer Melanie Hopkinson said the report revealed a concerning reality for many Western Australians.
“The fact that so many people would struggle to cover an unexpected $500 expense highlights the urgent need for more effective and targeted financial support, especially for those on lower incomes.
“It also emphasises the critical need for more financial counsellors and greater awareness of the essential services they can provide.
“When people can’t cover unexpected expenses and need credit, they’re more likely to turn to high-cost options like payday lenders. This can trap them in a cycle of debt, making it even harder to regain financial stability.
“We urgently need to provide more accessible financial support and education to prevent this from happening.”
Shelter WA Chief Executive Officer Kath Snell said it came as no surprise that 45 per cent of respondents listed housing as one of their top three concerns, second only to cost-of-living issues.
“This mirrors the challenges faced in the sector and is evident from the number of people seeking assistance.
“Given Western Australia’s wealth, it’s hard to comprehend why so many residents are facing such significant struggles.”
Youth Affairs Council of WA (YACWA) Chief Executive Officer Sandy McKiernan said that more needs to be done to support young people through these cost of living issues.
“We know that young people are among those worst affected by cost-of-living pressures. Many are unable to afford basic necessities, with only 16 per cent of young people able to consistently afford groceries.
“The State Government needs to urgently prioritise support for those who need it most. Cost-of-living is the biggest issue for West Aussies – we need action to ensure those most impacted aren’t being left behind and unable to afford basics.”
Anglicare WA Chief Executive Officer Mark Glasson said the rising cost of living is going to be one of the defining issues of the upcoming state election.
“More and more Western Australians are seeking the support of organisations like ours and increasing numbers of those have never needed this kind of help before.
“The State Government has made some really positive moves to address the issue, but as we enter election season, voters are going to be looking for more to be done both at scale and at pace to address cost-of-living and financial hardship.”
