Young people in Australia worst affected by COVID-19 economic toll

A survey of consumer habits during the peak of the pandemic revealed that half of respondents said they were unsure of their ability to pay rent. A study by the Consumer Policy Research Centre indicates that between May and July the number of young Australians who have applied for loans to make ends meet has increased.

Closed shops are seen in the suburb of Crows Nest in Sydney, Wednesday, May 13, 2020. Source: AAP

Young people were found to be two to three times more likely to skip paying their bills than the general population, and more than a third said they were worried about energy costs.

Meanwhile, according to Assistant Minister for Superannuation, Jane Hume, workers who will not receive a single dollar increase in wages in the next five years must blame the costs of superannuation. The mandatory increase in super contributions must gradually rise from the current 9.5% to 12% in 2025. This is 20 billion more per year to super funds which, due to the coronavirus, could however have negative repercussions on salaries. Several Coalition MP's have called on the government to postpone the 0.5% increase planned for next year precisely because of these concerns.

We analysed the issues with finance professor at UNSW-Canberra, Massimiliano Tani.

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