Financial Wellbeing Report: The Changing State of Australians’ Finances

Savvy looks at the state of financial wellbeing of Australian consumers, according to the latest research
Written by 
Adrian Edlington
Adrian Edlington is PR & Communications Manager at Savvy. With a keen interest in personal finance, car loans, the mortgage industry, cost of living pressures, electric vehicles and renewable technology, Adrian's research includes conducting primary data surveys and analysis of up-to-the-minute secondary Australian data sources. His work on behalf of Savvy has been featured on The Conversation, the Sydney Morning Herald, AFR,, The Age, Herald Sun, Adelaide Now, SBS On The Money, 7News, Car Expert, Which Car,, Auto Talk, CleanTechnica, The Latch, Newcastle Herald, The Examiner, Illawarra Mercury, Professional Planner, New Idea, Canberra Times, Bendigo Advertiser, The Courier,, MSN, The Australian, Stockhead, Yahoo Lifestyle, Smart Company, Yahoo Finance, Money Management, Proactive Investors, Glam Adelaide, Your Life Choices, Investor Daily, Real Estate Business,, Money Mag, Yahoo News, Elite Agent, The West,, Yahoo Sports,,,, Mortgage Business, The New Daily, MPAMag, and In his spare time, Adrian enjoys mountain biking and business podcasts.
Our authors
, updated on February 2nd, 2023       

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As keen observers of financial wellbeing in Australia, Savvy takes a look at the numbers in Australia, doing a deep dive into the health of finances among the general population.

  • The observed financial wellbeing of Australian consumers slipped 1.1% to 50 points from 51.1 points the previous year
  • The self-reports of “just coping” or “having trouble” with financial wellbeing increased 1.5 points
  • Savings levels have improved since March 2020, with balances 46% higher than pre-pandemic levels
  • Australian consumers “consistently spending at high levels” has increased by 6 points
Happy couple discussing their financial wellbeing

Do you feel secure with your finances? Do you feel more well off than last year? Despite inflation hovering above 7.1% and interest rates climbing seemingly every month, the latest research by the Commonwealth Bank and University of Melbourne’s Melbourne Institute showed that the overall financial wellbeing in Australia decreased by 1.1 points to 50 points out of a possible 100. (Below 50 means more people are worse off than better off, and vice versa.)

This is a 2.6-point increase over March 2020, which was at the height of uncertainty surrounding the COVID-19 pandemic.

Though high-level average statistics may look pleasing, the nitty gritty holds real answers. What do the metrics tell us, and does it bode well for financial wellbeing in the future?

Financial Wellbeing in Australia Infographic

Distribution of financial wellbeing

Financial wellbeing in this report is calculated using five different metrics. Respondents were asked whether:

  • If they experienced payment problems in the last year
  • If a customer had the ability to cover usual monthly expenses
  • How many months they experienced where expenditure exceeded income by 80%
  • The number of days where a respondent had the ability to raise one- or six-months’ expenses from available savings or credit
  • About level of savings relative to other people of the respondent’s age.

Respondents answer on a scale of 0 to 5, with 0 being the worst possible outcome and 5 being the best possible outcome.

According to the report, there are four categories of financial wellbeing. “Doing Great”, “Getting By”, “Just Coping”, and “Having Trouble”. The categories of “Just Coping” and “Having Trouble” increased by 1.5 points over March 2021 and March 2022. The “Doing Great” category dropped by half a point and “Getting By” shrank by one point.

The average observed financial wellbeing score showed a decrease of 1.1 points over last year, though 2.6 points higher than two years earlier at the start of the pandemic. It also showed that savings levels improved, with median savings balances 46% higher than pre-pandemic levels.

Changes in median Australians’ finances

The report tracked the incomes and outgoings of Australians around the country. Combined with Australian Bureau of Statistics data, incomes and inflows (non-work income) remained the same as March 2021.

Savings balances also saw the same number as last year. The precautionary savings metric, however, kept last year’s score of 50 high, as many people saved more “just in case” government interventions such as JobSeeker or JobKeeper stopped. However, this cautious optimism that underpinned 2021 has faded somewhat in 2022, as inflation and high interest rates cause greater economic uncertainty.

Perhaps due to life returning to normal and higher inflation (or a combination thereof), outflows and expenditures rose by $1,600. This may reflect the jump in monthly rent or mortgage repayments as well as the overall higher cost of living due to higher priced petrol, gas, groceries, and electricity.

Average Observed Financial Wellbeing Score
Distribution of Financial Wellbeing Outcomes in Australia 2022

Changes in Australians experiencing problems with finances

Even though there is an overall increase in wellbeing, the change in proportion of Australians experiencing problematic financial outcomes has also risen slightly.

There was a six-point increase in the number of Australians who are consistently spending at high levels, defined as over 80% of their income in the survey, which damage their capacity for regular saving.

There was no change in the proportion who are experiencing severe payment problems, which is defined by being behind in bills, rent, or mortgage repayments for more than two months out of the last twelve. This also means compounding payment issues such as late fees, dishonour fees, and over-limit fees.

There was a two-point increase in Australians living paycheque to paycheque and the proportion of Australians that didn’t have adequate rainy-day savings. The latter is defined by an inability to raise at least one month’s worth of expenses from savings or credit on hand for at least three-quarters of the past year.

There was a one-point increase in the proportion of Australians holding below average savings, defined as “more than one standard deviation below the median for their age bracket.”

YoY Change in Financial Wellbeing by State or Territory
YoY Change in Financial Wellbeing by State or Territory

Year on year change in financial wellbeing by location

The highest average levels of financial wellbeing in Australia were found in the ACT (53.3pts) and Victoria (52.4pts). The lowest levels were found in the NT (45.8pts) and Queensland (46.2pts).

The largest decreases year on year were found in Tasmania (-2.2pts to 48pts) and Queensland (-2pts.) In fact, all states and territories recorded overall decreases.

The decline, according to the report, can be chalked up to outflows and expenditures increasing due to pent-up demand; though as inflation has bitten harder, consumer sentiment has worsened.

Year on year change in financial wellbeing by generation

Financial wellbeing decreased across all age brackets between March 2021 and March 2022, with the Australians from the “Silent” and “Greatest” generations experiencing the most precipitous fall with a 1.7pt decrease. The Baby Boomers were next on -1.1pts, followed by Generation X and Y (Millennials) losing a point each. Generation Z’s wellbeing dropped by half a point.

Getting on top of financial wellbeing

With an overall increase in Australian consumers “having trouble” or “just coping” and perhaps living paycheque to paycheque, getting on top of financial wellbeing can be remedied with a bit of financial planning.

Savvy Spokesperson, Adrian Edlington;

“Though the good old days of near zero interest rates are over, people who are struggling to make ends meet may be hampered by paying ongoing high-interest debts such as credit cards,” says Savvy spokesperson and financial expert Adrian Edlington.

“One way to wrangle debts is to create a snapshot of your income and spending, set a strict budget, and consider consolidating debts using a personal loan. This allows households to ease some of the pressure of debt and put them on a path to debt freedom, saving more, and greater financial wellbeing.”

For media enquiries, please contact Adrian Edlington at [email protected]


Australian Consumer Financial Wellbeing Report – Quarterly Update, March 2022.

About Savvy

Savvy is one of Australia’s largest online financial brokers, focusing on personal and commercial financial products. Founded in 2010, the firm has seen rapid growth, a testament to their provision of market leading rates and reaching customers with the latest in media and technology. Savvy is a proud supporter of Kids Under Cover, a charity assisting homeless and at-risk youth to strengthen their bonds to community and education. Savvy was named one of BRW’s fastest growing companies in 2015.

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