More Australians are looking for a second job, according to the results of polling released by CPA Australia, as more people are squeezed by cost-of-living pressures.
The poll of 1,200 by Australia’s professional accounting body found that 36% of people were thinking about taking a second job.
According to Elinor Kasapidis, the national skills shortage meant that there were opportunities for Australian workers who wanted to pick up more work to do so.
The CPA Australia tax policy expert added that continued full employment would put upwards pressure on wages, meaning further interest rate rises to deal with inflation.
“The current strong labour market has allowed people looking to earn extra money to take on second jobs,” Kasapidis said.
“Our advice is, however, if you’re taking up a second job or doing some gig work it’s really important to think about your taxes.
“It’s also crucial that you make sure you keep good records so you can claim your expenses,” she said.
The most expensive cities to rent in Australia have been ranked by Domain, whose December 2022 quarterly rent report indicated Canberra was the most costly place to rent, at a median rate of $690 per week. This was followed by Sydney, at $650 per week.
RBA governor Philip Lowe made headlines earlier this month when the independent board decided to lift interest rates for the 12th consecutive time in more than a year. It was a move designed to further depress the Australian economy and set rates at a 10-year high.
Lowe told a conference in Sydney shortly after the RBA lifted the cash rate by 25 basis points to 4.1% that the decision was justified because of “upside surprises” concerning domestic and overseas inflation, wages and housing prices.
Lowe then told senate estimates that Australia’s strong population growth was impacting rising rents and house prices. To survive in these conditions, he said more people would need to consider sharehouse arrangements and pick up additional work.
“As rents go up, people decide not to move out of home, or you don’t have that home office, you get a flatmate,” Lowe said.
“Higher prices do lead people to economise on housing …. Kids don’t move out of home because the rent is too expensive, so you decide to get a flatmate or a housemate because that’s the price mechanism at work.”
Meanwhile, the advocacy group Everybody’s Home has called for new ways to make rent and housing more affordable in Australia to protect essential workers from rental stress and homelessness. Rents are expected to grow in Australia by as much as 10% as more international students and migrants join the market and compete for a place to live.
Everybody’s Home is a coalition supported by 400 organisations and aims to ensure all people have safe and decent accommodation.
The group published a report in April this year noting that soaring rental costs and record-low vacancy rates meant people would be forced to live for decades in share homes or couch-surfing with friends and family as they simply could not find a home.
In a comprehensive breakdown of the net weekly pay of everyday workers Australia-wide, including those working in aged care, frontline services, hospitality, education, and health, it warned that the internationally accepted benchmark for rent prices should be no more than 30% of the household budget. Across all these common occupations, rent prices ate up between 50%-81% of people’s income.
“The results are so critical that for several occupations, a person could be earning double the award wage and still be in rental stress,” the report said.
“These results become even more grim when looking at the average across capital cities, where rents are higher and rental stress is even more severe.”
Outcomes and financial stress were worse for people living in single households and with no savings buffer, Everybody’s Home said.
The CPA Australia poll also found 20% of respondents were already working multiple jobs, with cash-strapped people looking for more ways to increase their income.
Last week a senate inquiry into Australia’s rental crisis was established to give input into national cabinet policy decisions about renters’ rights.
An interim report from that inquiry is expected by September, with submissions being accepted until 28 July, 2023.
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