More and more Australians are taking up side jobs, which some experts say shows the impact of rising inflation and the cost of living on households across the country.
according to Australian Bureau of Statistics (ABS), the number of Australians with multiple jobs reached a record 900,000 in the June quarter, up 4.3% from the last three months and up 8% from a year ago. did.
Lauren Ford, head of labor statistics at ABS, said the rise was consistent with historically low underemployment rates.
A low underemployment rate suggests that the country’s productive resources are being better utilized, but workplace experts worry that increased working hours signal a weakening economy. I’m here.
Evgenia Decter of the University of New South Wales said the rise in people taking side jobs was a sign of a worsening trend in cost of living and economic insecurity.
Supply chain disruptions, the war in Ukraine and the COVID-19 pandemic have caused prices of many commodities to skyrocket in Australia since the beginning of the year.
Lettuce soared from $2.80 to $12 ($1.83 to $7.83) at its peak in June. petrol retail price It is now at $1.83 per liter after gaining 10% in the week ending Oct. 2.
Australian inflation was 6.1% in the June quarter. No figures for the September quarter have been released, but the Reserve Bank of Australia expects it to reach 7.75% by the end of 2022.
To combat inflation, the RBA launched an aggressive tightening cycle in May. But it’s starting to slow down on fears of a potential recession.
Impact of tax cuts on side contractors
Meanwhile, the Australian government is set to present a new budget in the coming weeks, so there has been a heated debate over whether the tax cuts will be scrapped or reduced.
The Labor Minister has backed the ‘Phase 3’ tax cuts introduced by the previous Morrison administration. but, some critics He said the cuts would mainly benefit high-income earners.
If the government implements this plan, the current rate of 32.5% will be reduced to 30% and the 37% rate (for incomes between $120,000 and $180,000) will be abolished.
In addition, the 45% bracket threshold will be increased from $180,001 to $200,001.
Dechter said the tax change could be a boon for people with side jobs because they can make more money before being hit with a higher tax rate.
Meanwhile, University of New South Wales Associate Professor Dale Boccabella said those considering a side hustle should weigh the time it takes against other jobs.
“Think of the money you make on the side and the value of spending time away from family and friends,” he said.