Rising living costs continue to outpace wage growth for many Australians, leaving households financially strained as mortgage payments, energy bills, and everyday expenses increase. A recent national survey conducted by Finder.com.au found that 82 percent of Australian adults had not received a significant pay rise in the past year, with some reporting an actual reduction in income.

The survey revealed that among those who did see their salaries increase, nearly two-thirds experienced rises of less than 7 percent. Such increments are unlikely to keep pace with the ongoing financial pressures faced by households, particularly those with mortgages. This year alone, three interest rate hikes have put additional strain on borrowers, eroding any modest gains in income.

Taylor Blackburn, a personal finance specialist affiliated with Finder, said the lack of substantial wage growth is making it difficult for workers to manage rising living costs. “Millions of workers are losing ground as wages fail to keep pace with the rising cost of essentials such as housing and energy,” Blackburn said. He emphasized that even standard annual raises might not be sufficient to maintain purchasing power when expenses increase at a faster rate.

With rents expected to surge due to recent government reforms and the possibility of further interest rate increases looming, many households are facing an uphill battle. Blackburn noted that stagnant wages hinder the ability to save, reduce debt, or improve financial standing overall, recommending employees advocate for salary reviews by presenting evidence of their contributions.

For some, refinancing has become a necessary strategy to alleviate financial pressure. Young parents Luke Johns and Camilla Dodkins refinanced their apartment, reportedly saving between $200 and $300 a month. “Cost of living is just crazy right now,” Johns said, adding that they are trying to save as much as possible with a young child.

Aidan Hartley, a broker with Refinance.com.au, highlighted that rising interest rates are a primary driver of financial stress, especially in high-debt markets like Sydney. He noted that many Australians have seen flat salary growth over several years, forcing them to leverage their home equity as a means to manage other debts, such as car loans. Hartley explained that refinancing high-interest loans into mortgages with comparatively lower rates can be a pragmatic response amid economic challenges but underscored that many are struggling to keep up under current conditions.

As costs continue to climb and wage increases remain limited, the economic outlook for many Australian households suggests ongoing financial hardship.