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Higher costs for everyday essentials from groceries to housing, energy and insurance are putting Australians under increasing financial pressure, a new report from Smart shows.
The new report – Stretching your salary: How Australians are managing cost of living pressures – shows that 97% of Smart customers surveyed are concerned about the cost of living.
The report, which is based on the results of Smart’s annual Cost of Living Survey^ of more than 1,300 customers, suggests things are getting worse, rather than better, for many Australians.
Almost two thirds (62%) of respondents to the Smart survey - spanning sectors including health, disability and aged care, education and government - say they are feeling more financially stressed than they were a year ago. More than 40% report that their living expenses have increased significantly in the past year.
“It’s clear from our survey that the cost-of-living crisis is showing no signs of easing for the many Australians who are more worried about making ends meet than they were a year ago,” Smart’s Chief Customer Officer Bianca Bates says.
Despite the challenging economic conditions facing Australian workers, the survey highlights salary packaging as an effective strategy to combat the higher cost of living.
More than 90% of respondents say they are likely to recommend salary packaging to others to save money.
“Our report highlights the critical role that salary packaging can play in reducing financial stress for employees across the country, with 98% of people planning to maintain or increase their salary packaging to ease cost of living pressures,” Ms Bates says.
“Salary packaging isn’t just a tool for high earners. It’s a proven method for all employees – and particularly our essential frontline workers like nurses, disability and aged care workers, teachers and those in the emergency services - to save money and reduce financial pressure.”
There’s no sugarcoating it – housing costs in Australia are tough right now. But you’re not alone. From getting professional advice to exploring salary packaging, every small step can help you feel more in control.
Our report shows customers working in the aged care, disability services and not-for-profit sectors are the most concerned about the cost of living (81% moderately to extremely concerned). They are followed by those working in government or healthcare/ hospitals (78% moderately to extremely concerned).
The most significant financial pressures identified by Smart customers in our report are:
Many of these expenses can be salary packaged, depending on the industry you work in and what benefits are offered by your employer. Learn more about salary packaging.
This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and obtain appropriate legal, tax, financial, or other professional advice based upon your own particular circumstances. This information is current as at July 2025.
^This report is based on Smart’s Cost of Living survey, where 1,379 customers were surveyed from 28 April to 18 May 2025.
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