Tasmanians at Increasing Risk of Falling Into Financial Distress
MyState Bank CEO Brett Morgan said the report found, over half (61%) of Tasmanians feel worse off than last year, with women, renters, and those aged 35–49 facing significant challenges with rising house prices, rents and the general cost of living. “The findings highlight the urgent need for collaborative efforts to address these challenges and support the financial health and resilience of all Tasmanians,” Mr Morgan said.
One-in-five Tasmanians have cut back on healthcare and insurance to cope with rising costs, while almost half have cut back on essential spending to make ends meet. 20% of Tasmanians could not raise $500 for an unforeseen expense within a week. – Findings from the newly launched Financial Wellbeing in Tasmania Report
Colony 47 CEO Dianne Underwood said alarm bells should be ringing about the growing number of people in our community, who’ve had extraordinarily limited capacity to absorb financial shocks.
“The report goes some way to explaining why services such as ours are experiencing unprecedented demand,” Ms Underwood said. “Increasing rents and lack of affordable housing have seen many Tasmanians ask for help who have never had to reach out before. “We should be doing everything we can to stop people falling off the housing cliff because insecure housing and homelessness sit at the heart of so many issues including educational attainment, unemployment, crime, and mental health.”
The biannual report provides a snapshot of the economic and social wellbeing of Tasmanians, with the purpose of shedding light on their challenges and aspirations in the current year and year ahead.
MyState CEO Brett Morgan says understanding the economic and social pressures and aspirations facing Tasmanians is crucial for business, policy makers and community groups. He says, “Inflation and interest rates have put real pressure on many in the community particularly those on fixed incomes facing big price increases for rent, food, healthcare and mortgage payments.”
He goes on to say, “Tasmanians are showing resilience: they’re cutting back on spending; seeking to work more hours and prioritising home ownership.” “However most Tasmanians are worse off this year than last year and only 40% see better times ahead in 2025.”
Colony 47 and MyState Bank are committed to improving and maintaining the financial health of Tasmanians so that they can help the community with the rising cost of living, avoid financial stress, and achieve important financial and life goals.
Key Findings:
- More than half (51%) of Tasmanian women are extremely concerned about their financial situation, compared to 39% of men.
- Over half (61%) of Tasmanians feel worse off than last year, with women, renters, and those aged 35–49 particularly impacted.
- Women under 50 with children are cutting back on healthcare and women under 35 are moving back with their parents.
- One in five mortgage holders are under financial distress.
- 57% of renters are extremely concerned about rising costs, compared to 32% of homeowners.
- One in five Tasmanians could not raise $500 for an unforeseen expense within a week.
- Despite financial pressures, Tasmanians remain resilient, prioritising travel and homeownership.
- 43% of part-time and casual workers are looking to work extra hours to meet cost of living pressures.
Cost of Living Insights:
- More than half (56%) of Tasmanians think it is a bad time to buy a major household appliance.
- One in five Tasmanians have cut back on healthcare and insurance to cope with rising costs.
- Younger people renting or with mortgages are under similar financial pressure.
- Over two-thirds of those under 35 working part-time/casually are actively looking for more hours.
- 58% are searching for ways to save money on everyday items, while almost half have cut back on essential spending to make ends meet.
- Holidays remain a priority, with more than half (51%) planning domestic travel.
Housing Concerns:
- 89% believe it is harder than ever to buy a first home.
- Younger Tasmanians feel a growing sense of urgency to enter the property market, with more than half (51%) expressing this sentiment.
Employment and Training Insights:
- 43% of part-time or casual workers are seeking more hours.
- Cost of living pressures are putting downward pressure on the willingness to undertake further study.
Together Colony 47 and MyState Bank have launched the JumpStart program to address the youth housing crisis.
This pilot program provides furnished houses and subsidised rent to eligible Tasmanians aged between 18 and 25 for up to 3 years. It aims to give young Tasmanians the opportunity to build a private rental history, help them become employable and develop the skills they need to live independently.
