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Welcome to the September newsletter.
Key Information on Consumer Spending
Recently we were fortunate enough to receive information from our contacts at the Commonwealth Bank regarding figures on household spending released by the Australian Bureau of Statistics. The findings certainly make for interesting reading as to the habits over the past five years of consumers.
You may find the following information interesting particularly if you currently provide goods or services in one of the industries mentioned. There are also interesting findings with regards to the pricing of goods and services. Of significant interest is the finding that Australian consumers are spending less than the “normal rate”. Real spending grew by 3.7% last year which was below the normal rate of 3.9%. It would also appear that the consumers have altered their spending habits and are buying different goods.
If you are an investor you may take note of these findings when considering the appropriate companies to invest in.
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Household Spending
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Real Annual Growth, Percent
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Past Year
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Past Five Years
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Past Decade
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Top Five
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Computers
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25.1
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Computers
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456.8
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Computers
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2720.8
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Water Transport
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14.1
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Audio Visual Photography
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119.7
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Audio Visual Photography
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215.6
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Household Appliances
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11.8
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Water Transport
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58.7
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Water Transport
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125.4
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Accommodation
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10
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Life Insurance & Super
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51.3
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Communications
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116.7
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Audio Visual Photography
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9.8
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Household Appliances
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49.5
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Chemist Goods
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101.8
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Total Spending
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3.7
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Total Spending
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20.8
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Total
Spending
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47.8
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Bottom Five
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Rail Services
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-1.2
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Bus Services
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-1.1
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Household Insurance
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10.3
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Household Insurance
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-2.3
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Cigarettes & Tobacco
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-4.9
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Motor Fuel (Petrol)
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9.9
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Cigarettes & Tobacco
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-3.8
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Rail Services
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-5.6
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Cigarettes & Tobacco
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-7.8
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Doctors
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-4.7
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Health Insurance
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-9.9
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Doctors
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-13.9
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Books, Newspapers
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-5.8
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Doctors
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-11.5
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Motor Vehicle Insurance
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-27.1
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Source: CommSec, based on ABS Data
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Interesting points to note...
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We are buying a lot more gadgets – whether it is computers, MP3 players, digital cameras, DVD players or big-screen, high-definition televisions. And it’s not hard to work out why. Not only has the performance and quality of the goods increased, but also prices have slumped – halving in price in just the past five years.
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Clothing prices have fallen 4% over the past five years and we’ve bought 28% more items. And car sales have soared by 30% since 2002 in response to a 6.5% fall in new car prices.
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The same equation holds for furniture, curtains, carpets and household goods like refrigerators, washing machines, kettles and coffee makers. Houses and units may be costing us more, but the goods we put in them have – in many cased – been falling.
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Over the past year, five years and decade, Australians have been spending relatively more on chemist goods, at the same time making fewer on visits to health professionals like doctors.
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Price appears to have played less of a role in our consumption of other items. Over the past year, five years and decade, Australians spent relatively more on alcohol and gambling.
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Some spending is a reflection of our ageing population namely the above-average outlays on life insurance and superannuation.
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Over the past five years, spending on water transport services increased by almost 59%, almost triple the total outlays by consumers on all goods and services over the period.
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In general Australians are buying less ‘everyday’ or ‘essential’ items and more non-essential or discretionary goods. In fact so-called ‘essential’ items like food, clothing, transport, alcohol & tobacco and furnishings now make up just over 36% of household spending, meaning that discretionary items and housing are taking up an increasing share of spending.
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Whether it is cars or general household items, consumers have shown a greater tendency to replace items rather than repair.
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Australian consumers have clearly been cutting back on books and newspapers over time, preferring to use the internet and electronics media for their information and recreational needs.
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Consumers continue to spend more of their budgets on discretionary goods and less on essential items like food – a consequence of our rising wealth and prosperity.
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ATO Key Dates
Friday 21 September 2007
- August 2007 monthly activity statement – due date for lodgment and payment (self assessed deferral is available)
Sunday 30 September 2007 -
Pay as you go (PAYG) withholding payment summary annual report – due date for lodgment for a payer who has agent involvement in preparing the report and is not a large withholder or did not qualify for the closely-held lodgment concession.
MYOB Software
Macquarie Partners have had a close association with MYOB over a number of years and fully recommend the MYOB suite of products.
Macquarie Partners can assist you in the purchase of this appropriate MYOB business management software. There are a number of versions of each product and we can help with the correct choice for your business. Additionally we can provide the software at below recommended price.
If this interests you please contact your usual Macquarie Partners team member to discuss.
Collaborative Family Law
In early 2007 a group of Law firms from across the western Sydney region joined forces to create Western Sydney Collaborative Family Lawyers (WSCFL).
The group comprises experienced family lawyers and accredited specialists from the leading firms in the region who understand the collaborative process. They can help you and your partner to reach the settlement agreement that best suites your unique situation without the need to go to court.
In a collaborative family law process, clients and their respective lawyers agree to work together to find a fair solution to whatever financial or child-related issues need to be addressed in a separation – without involving the Court.
A Participation Agreement is signed between the parties and their respective lawyers stipulating that the case will not be referred to court and a satisfactory settlement is then negotiated through a series of meetings, sometimes involving other independent experts.
How can we get a collaborative case started? It is essential that both parties use lawyers who understand collaborative family law.
If you think that your partner may be interested in trying collaborative law as a way of resolving your separation, refer them to the WSCFL website at
www.sydneycollaborativefamilylawyers.com.au
or request a brochure for them to look at. You and your partner can then select your preferred lawyers from within the Group knowing that they have the right experience to handle your case.
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