Most people poorer than in 1972

Press, 8 December 1976, Page 2

Most people poorer than in 1972

Wages in 1976 will buy less than they would in 1972 says the report of the Council’of Social Service.

Although incomes rose ahead of prices between 1972 and 1974, they have fallen sharply since then. In 1972, the average weekly wage for a married man after tax was $63.70. In mid-1976 it had increased to $95.14, although its worth in 197? terms — calculated according to the Consumers’ Price Index — is now only 557.95. The average weekly earnings of a male have increased by 58.6 per cent since late 1972, but average overtime earnings have increased much more slowly. Families which rely on overtime to meet hire purchase, housing and other essentia! commitments now have increasing difficulty in maintaining their financial position.

As the average worker’s earnings increased, so did the amount taken by taxation. In 1972, the average male took home 82 per cent of his gross earnings; by 1976 this had fallen to about 77 per cent. No adjustment has been made to family benefit rates since 1972, says the report. Since then, the worth of the family benefit has diminished in relation to prices. To have the purchasing

pjwer it had in 1972, it would have to have risen to $4.93. In 1972, family benefit for three children represented about 14 per cent of the average male’s earnings, but it had fallen to about 9 per cent in 1976. For larger families, the reduction as a percentage of average wage is even more significant. The people in the worst position are lower-income families in which there is only one earner. About 40

per cent of males of familyrearing age are getting below the average wage — $95.14 after tax.

The report says that the greatest financial strain is with a teen-age family. The cost of maintaining a child reaches adult level at 14, and may even exceed the cost of an adult. Three important costs which must be faced by all families however are medical care, education, and housing.

Since 1973, general practitioners’ net charges have risen by 50 per cent — more than the rise in consumer prices or net average incomes. The Accident Compensation scheme and the general medical services benefit compensate for this to some degree, but medical care is a real burden for many families. Although education is nominally’ free, the report says, there are additional costs during what is the

most expensive stage of rearing children. A secon-dary-school child might need up to $lBO annually for uniforms, stationery and trips. Because housing scarcity tends to increase during times of economic difficulty, rents and prices are prone to rise, says the report. Housing costs make up 27 per cent of all spending, and assistance with State housing is an efficient way of giving relief to those at the bottom of the income scale.