CASH-STRAPPED businesses and individuals owe the Australian Taxation Office $14.7 billion - more than half of the nation's deficit.
"These debts are often temporary problems, caused by unforeseen personal circumstances or a short-term business downturn.I wonder if record high mortgage payments on record high mortgage debt could have anything to do with this.
How debt chews up the family's income
A report found four in five Australians list their "biggest concern" as rising living expenses, utilities and petrol prices. Australians spend 45 per cent of income servicing debt - more than India, Italy, Mexico and the UK - compared to an average of 38 per cent.Given that employment numbers in Australia are still good, debt is likely the entire problem. Expect every other consumer-driven sector to suffer as well, which has a nasty habit of showing up in the employment numbers.
Encouraging households to borrow to the edge of affordability is stunningly irresponsible. Maybe now the government will take notice of how much a bad idea.
As the Grays can attest, a Sydney household earning $150,000 is not rich, and news the government is considering raising the upper limit for its carbon tax compensation was welcomed by the family.Let house prices rise out of control, kiss your middle class goodbye.
The Grays are adamant they are struggling with the cost of living, weighed down by a mammoth mortgage and significant transport costs.
Link hat tip: Aussie Roy at Greaterfool.ca