Fed: Australians wealthier than a year ago: Treasury

AAP General News (Australia)
02-02-2007
Fed: Australians wealthier than a year ago: Treasury

EDS: Embargoed to 0001 (AEDT) on Friday, February 2



By Sandra O'Malley

CANBERRA, Feb 2 AAP - Finding it tough until your next pay cheque?

Then it may be a surprise to find that Australians are almost 20 per cent wealthier
than they were a year ago.

The federal Treasury's latest economic roundup also disputes the perception that Australian
child care is expensive and in short supply.

The summer 2007 Treasury figures showed Australia's net private sector wealth jumped
by 19 per cent in the 2006 financial year - or 15 per cent taking inflation into account.

At current prices, total wealth in the private sector was about $7,464 billion - or
$361,000 per Australian.

Real net wealth has risen by more than $150,000 since June 2001 alone, the data shows.

According to Treasury, corporate Australia was a major contributor to the nation's
growing wealth, mainly due to significant rises in business assets and the value of the
stock market.

The continuing rise in property values, particularly in the mining boom capital Perth,
also played a big part in Australia's rising net wealth.

House prices in capital cities across the nation rose by seven per cent in the year to June 2006.

"Two-thirds of this increase was due to the increase in house prices in Perth, which
rose by 38.1 per cent in the year to June 2006," Treasury said.

Apart from suggesting Australians are rolling in dough, Treasury also disputes the
community perception that child care can be hard to find, and when it's available, is
unaffordable.

Assessing available data, it says the supply of formal child care has generally kept
pace with demand.

"At the same time, child care has generally remained affordable," Treasury said.

It says while more families are using formal child care services, it has been "mirrored
by the government expanding provisions to ensure child care remains affordable and accessible".

Treasury notes some discrepancies between where child care may be available and where
there is demand but says data indicates it is not "pronounced".

"Insufficient supply of formal child care places has been reported in inner urban areas,
where the alternative commercial use of available sites may bring greater returns on investment,
while oversupply is reported in lower income outer urban areas," it said.

Rather than lack of child care being the problem, Treasury suggests it may be more
a case of fussy parents who would prefer other types of child care.

"The evidence suggests that broad concerns about child care access might mask consumer
choice, with parents expressing more disquiet about not being able to access their preferred
type of child care rather than child care per se," it said.

It's an argument Labor finds hard to swallow.

Opposition families spokeswoman Jenny Macklin points to figures from the Productivity
Commission to back their claim that the cost of child care is going through the roof.

The average cost of weekly long day care was $233 per child, while family day care
was $214, the commission report showed.

"It just means that child care is getting out of reach for some parents," Ms Macklin said.

"It can't be justified that parents are loaded up with so much cost because for some
parents that means they can't afford child care."

AAP so/sb/jt/nf

KEYWORD: ECONOMY (EMBARGOED)

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