Latest Australian Bureau of Statistics (ABS) figures show a disturbing trend of “real wages” decreasing, possibly signaling the end of the “era of affluence” in Australia.
Over the last financial year real wages rose 2.6 per cent whereas the consumer price index (CPI), which is used to measure the inflation, rate rose 2.9 per cent. Which marks the weakest growth since the ABS started to keep records of wages growth in 1997. Because wages aren’t keeping up with inflation, they’re going backwards in real terms.
This decrease in wage costs can be good for some businesses but bad for others. As wages decrease consumer sentiment decreases as well, this will also decrease discretionary spending. So the long suffering retailers will feel the pinch again.
There has never been a more important time to understand your finances!
What this means is that it has never been more important to be “fiscally engaged”. Engaged with your own money, engaged with your advisors and engaged with fiscal policy.
Below are 5 key questions to test whether you are fiscally engaged or disengaged:
Which superannuation fund are you with?
What return did you get on your super last year?
What is the marginal tax rate for your current salary?
What is your superannuation balance (rounded to the nearest thousand)?
What are your average monthly expenses?
How did you go.
Could you answer all 5 questions? If not then it’s time to get engaged. Prosperity Accountants are committed to providing BETTER advice now so you can have a more secure financial future. We’re also committed to raising the financial literacy of all our clients.
Contact us today and get 5 out of 5!