Rising cost of living pressures are forcing many Australians to choose between keeping their homes and maintaining their health, according to new research.
Naturally, it’s keeping a roof over their heads that is taking priority.
Just released money.com.au data reveals almost one in two Aussies (44 per cent) have delayed or put off medical care in the past five years due to mortgage costs.
It included skipped dental appointments (61 per cent), specialist visits (23 per cent), delayed mental health treatment (12 per cent), and 4 per cent who postponed surgery or other medical procedures.
This comes with a new wave of cost hikes on April 1, including private health insurance premiums rising by nearly four and a half per cent while mortgage repayments continue to climb after the latest RBA rate hike.
Source: Money.com.au
Aussies are said to be spending an average of $4,059 per year on healthcare, a price slightly higher in NSW at $4,163, with the costs making it harder for many households to keep up with essential expenses, according to the research.
From GP visits, dental, specialists, medication, therapy, gap payments and surgery, the research found younger generations have the highest healthcare spend nationally.
Gen Z report average annual healthcare spending of $5,333, followed by Millennials at $4,843 both above Gen X ($3,435) and Baby Boomers ($3,647).
Money.com.au’s mortgage expert Debbie Hays said rising healthcare costs are forcing Aussies to tap into their home loans to pay for treatment.
MORE: ‘Crisis level’: Sydney suburb where it’s almost impossible to rent
Source: Money.com.au
“More borrowers are tapping into their offset or redraw accounts to pay for medical expenses or elective surgery when they need it sooner than the public system allows,” she said.
The average annual income in NSW is $108,368, according to the ABS, meaning healthcare spending accounts for about 3.8 per cent of income.
“Homeowners in NSW have some of the largest mortgages in the country, so while healthcare accounts for a smaller share – around 7 per cent of average annual mortgage repayments – that’s largely because housing costs are so high,” Ms Hays said.
“People in NSW are spending more than $9,000 extra per year on mortgage repayments compared to the rest of Australia.
Debbie Hays
“They’re more likely to report feeling financially stretched by their mortgage, which may lead some to sacrifice or postpone healthcare.
“For them, there’s less capacity to take on additional debt to cover medical costs.”
Rising healthcare costs can also reduce buyer borrowing power, with banks taking into consideration these higher costs when assessing mortgage capacity.
While renters are also feeling the strain to meet weekly payments.
Anglicare Sydney Director of Advocacy and Research Sue King said there are many people forgoing or putting off medical appointments or medication they are unable to afford.
“People might think $35 for a script, or for multiple scripts is not that great, but it is for people who are really juggling every single penny,” she said.
“We’re finding people going without the medication that they need.
“Some people spread out their medication when they shouldn’t, because they can’t afford to have it regularly.”
Sue King
Postponing or putting off dental was also seen regularly – with teeth care often first to go.
“Accessing dentists is really problematic for a lot of people who are experiencing financial hardship and who are struggling with the cost of living,” Ms King said.
“They just can’t afford it and dental care is really significant, particularly for children.”
Ms King said those unable to pay for bulk bulling with their local GP, “tend to sacrifice this as well”.
“It’s quite scary in terms of what people are experiencing,” she said.
“People are coming through saying they can’t pay their rent, they’re asking for payments for support.”
Struggling with rental payments while also needing medication for his depression and OCD,
Wollongong resident Scott Lane reached out to Anglicare last year.
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Wollongong resident Scott Lane is one NSW resident delaying healthcare due to home rental pressure. Picture: Jane Dempster/The Daily Telegraph
“I had no where else to go to and it was the last resort, I went to see them (Anglicare) –
and I got a case manager,” he said.
Mr Lane lost his rental in NSW last year due to not meeting sufficient payments.
“I ended up losing the other place because I have a bad gambling problem related to my OCD,” he said
“I’m in the process of getting another place at the moment, its becoming quite difficult.”
Mr Lane said he has “sometimes had to forgo” his medication.
“It’s becoming more and more difficult because of the cost of living and inflation and the fact that rents are going up as well,” he said.
“Its becoming quite difficult to live.”
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