Australian household and consumer spending trends 1900-2015

Figure 1: Australian Institute of Company Directors 2016

With constant public discourse on possible changes to taxation, the increasing cost of living and stagnant wage and salary conditions, research released by the Australian Institute of Company Directors (AICD) provides a useful balanced  insight into actual longitudinal spending patterns over the past 115 years. Using data from the Australian Bureau of Statistics (ABS), various comparative conclusions demonstrate that although incomes have been static over the past few years, in relative terms, Australians are living more comfortably than previous decades.

On the income side, allowing for a disputed measure of "imputed dwelling ownership" value of $14,500 (non cash ownership value which the ABS claims home owners receive) net average income for a household is $135,000 per annum (or 71,726 British Pounds Sterling at current exchange rates). Taxes at the turn of last century were 2 per cent of incomes compared to 14 per cent today plus the Goods and Services Tax (GST) and other embedded indirect taxes. Other observations of note are:

• the proportion of income expended on durable goods (cars, furniture, appliances) and non-durable (food, alcohol, clothing, fuel, pharmaceuticals, books etc) has fallen from 62 per cent to 21 per cent. Households now spend more on entertainment than food and twice as much on hospitality than clothes.
• the outsourcing of household functions and chores (such as meal preparation, travel, holidays, financial advice, health services, house cleaning, gardening) has grown to a staggering $42,700 per household or $818 per week. These were previously do-it-yourself functions or 'chores' in the earlier industrial era.
• Online shopping despite media comment does not yet account for 10 per cent of retail spending in Australia however it is projected to reach almost a third by mid century.

With all this extra outsourced support, one would imagine there would be many more hours in the day for leisure yet the phrase 'time poor' has become a familiar refrain in the digital age.