Cost of living jump pain
HOUSING and cost of living pressures are expected to hold the limelight in the looming state budget, with Townsville economist Colin Dwyer saying the government must be prudent with non-essential infrastructure.
Mr Dwyer said the recent RBA rate rise would have a flow-on effect to local business, with homeowners forced to reprioritise where their cash would be spent.
The average Townsville mortgage holder will pay an additional $3500 to $4000, if mortgages rise by 2.5 per cent.
“While the greater majority of mortgaged households will cope with this change in their budgets, they will do this by adjusting their expenditure priorities,” Mr Dwyer said.
“This will mean lower expenditure in local businesses.
“Eventually businesses will have to adapt, and this may mean fewer hours for some workers.”
Mr Dwyer added that renters, who comprised about 36 per cent of Queensland households, would now be paying an extra $1500 a year for their homes. He said this was in addition to petrol prices rising despite the cut to the excise, food costing more and a predicted increase to retail electricity prices. “Combined, it’s estimated all these price rises will cost renter households around an additional $4000 per annum,” Mr Dwyer said.
“As best we can, because each household is different, it’s estimated that these cost of living pressures represent around 4 per cent of an average dual income household and 7.8 per cent of a single income household. Wage rate increases are not expected to be this high during 2022.”
Mr Dwyer added that relieving the tight rental market, adding skilled workers and closing skill gaps and shortages needed to be a priority.
Townsville Enterprise has also been advocating on the North’s behalf in Brisbane this week, pushing key projects designed to strengthen the North’s future and economy.
TEL put forward a 2022-23 budget submission in January this year. “This delegation has concentrated on the key issues that will impact the North’s prosperity over the coming decade including transformational projects like CopperString, Lansdown Eco Industrial Precinct, CBD revitalisation, housing and new industry development,” TEL CEO Claudia Brumme-smith said.
“These projects will unlock billions of dollars’ worth of private investment into the region and create significant economic opportunities into the future, and we need the state and federal governments working together to bring them to life.” Ms BrummeSmith said it would also be pushing for investment in the Regen Aqua wastewater treatment technology in the Burdekin, while advocating for investment and approvals for the Dungeness Marine Access Upgrade “as a matter of priority”. “With dredging and the proposed rockwall, Dungeness will have permanent allweather and all-tide open water access, which is a basic requirement for reliable marine rescue, tourism and industry operations,” Ms BrummeSmith said.