Download Are Telecommunications the Hidden Cost of Living Pressure?
The report reveals that South Australian households spend about the same per week on telecommunications as on other utilities like electricity, gas and water. While phone and internet prices are coming down, this is being swamped by increased usage and expenditure, and young people are particularly struggling as they spend more on communications.
The report shows that average South Australian households spend over $40 per week on phone and internet, which equated to 3.8% of their total expenditure on goods and services (with younger
households spending up to 20% more than average). By comparison, electricity and gas accounted for 3.3% of expenditure.
Unlike electricity prices, phone and internet prices are not skyrocketing, but usage is rising rapidly with SACOSS estimating that telecommunications expenditure in the last ABS Household Expenditure Survey was two to three times more than 15 years earlier.
SACOSS Executive Director Ross Womersley said,
“The ability to connect with society is fundamental to human wellbeing, and increasingly
much of that connection happens online or via phones, texts and tweets.
“The issue is not about kids with mobile phones downloading music; it is about access to public information, government services and payments, employment advertisements and a range of other vital social connections.
“When you need to call the ambulance, telecommunications are pretty important. Like electricity and water, telecommunication bills are lumpy and unpredictable, and impact more on low income households.
“Low income households spend proportionately more of their household expenditure on
telecommunications than higher income households; they have lower standard services and
devices, and have less room to move in their household budgets to pay phone bills.”
If people can’t afford to access telecommunications, they risk becoming more isolated in an
increasingly digital age.
SACOSS is calling on state and federal government to develop a range of measures to assist with the affordability and accessibility of telecommunications for low income households, including consideration of:
- Low income support schemes for broadband, potentially extending some of the hardship provisions and packages from the voice-service to broadband suppliers (eg. Bill Assistance Packages, Centrepay options);
- Increasing public wi-fi availability so that those on low incomes are able to minimise download costs;
- Wi-fi availability in all government offices so clients can find and provide data without paying for the downloads; and,
- Increasing and broadening the telecommunications concessions and allowances to ensure they reflect current telecommunication services and usage.
Beyond telecommunications, the SACOSS Cost of Living Report shows that in the June Quarter of 2013 there were no net increases in food or utility prices, but rents and health costs increased well beyond the general inflation rate. For those on Newstart and other base level Centrelink benefits, price rises are still outstripping benefit increases.
For further information/comment contact:
SACOSS Communications Officer - Marnie Round 8305 4227
SACOSS Executive Director - Ross Womersley 0418 805 426