One in six Australians say they have less than a week’s cover for essentials

New research coinciding with the November rate decision highlights thin financial buffers  

One in six Australians say they could only cover essential expenses for less than a week if their income suddenly stopped, according to new AMP Bank GO research.  

The national survey found 37% said they could only cover essentials for less than a month without income, including 17% who said they have less than a week’s cover.  

The pressure is particularly pronounced among younger Australians, with those percentages increasing to 51% and 21% respectively for Gen Z, 18–29-year-olds.  

The findings come as the Reserve Bank makes its November cash rate decision, and as households face higher costs for essentials and unemployment sits above its level a year earlier. 

ABS figures published on 28 October show annual inflation rose to 4.3% in September from 4% in August, with housing-related costs up 5.2% over the year. Over the year to September, fuel prices rose 23.6%, electricity 12.8%, insurance 5.4% and rents 3.6%,¹ reflecting continued pressure across household expenses.  

Everyday bills dominate money worries 

The research also found:  

 - More than 1 in 3 (36%) said they were financially worse off than 12 months ago. 

- 27% described themselves as ‘treading water financially’, while 12% said they were ‘falling behind’. 

- More than 1 in 3 (36%) said they thought about money daily, and 32% said paying bills was what they thought about.  

- Close to 1 in 3 (32%) said everyday bills and expenses are their biggest financial concern right now.  

- 1 in 3 (33%) single parents said they only had less than a week’s financial cover, compared with 15% for coupled parents with kids at home. 

AMP Bank Group Executive Sean O’Malley, said the findings highlighted how little time some people would have to adjust if their income stopped. 

“Keeping up with regular bills can leave very little room for a change in circumstances. For people who say they have less than a week’s cover, an interruption to income could quickly make it difficult to pay for essentials. 

“Rent and other regular bills still fall due when income stops. Knowing how long you could cover those costs is a useful first step in working out the buffer you need. 

“When money is tight, building a buffer takes time. Start with an amount you can afford and keep it separate from money needed for regular bills. 

“A first goal might be a week of essential expenses, then build towards a month or more. A small transfer each payday can help make saving a habit.” 

AMP Deputy Chief Economist Diana Mousina, said the latest inflation figures reinforce the pressure many households are experiencing across essential expenses.  

“These findings show just how vulnerable some Australians are to financial shocks amid the ongoing inflationary pressure we’re currently experiencing. 

“It’s why the RBA faces a difficult balancing act – recognising that rising interest rates hurt mortgage holders – but are also a vital tool in helping keep long-term inflation in check.

“It’s this sustained inflationary pressure that is ultimately more damaging to the wider community and, as this research highlights, leaves many Australians exposed.” 
 

Five practical steps to start building a household buffer

1. Work out your cover. Add up essential weekly expenses and compare them with money you could readily access if income stopped. 
2. Separate bills and savings. Put aside money for regular bills and keep emergency savings separate from everyday spending. 
3. Automate what you can afford. Set a regular transfer after payday and adjust it as your circumstances change. 
4. Set an achievable first goal. Work towards a week of essential costs before building towards a month or more. 
5. Review after major changes. Recalculate after a rent or mortgage change, a change in work or a significant new household expense. 

 About the research  

AMP Bank GO commissioned research of 1,012 Australians, conducted by independent research company Dynata in September 2026.  

^{The product issuer and credit provider is AMP Bank Limited ABN 15 081 596 009, AFSL and Australian credit licence 234517.}