WE all work hard for our money. But have you ever stopped to think about what it costs you to hold down your job?
What do you spend on your commute, clothing, food and child care? In the end it all adds up, and it's probably a much bigger chunk of your take-home pay than you realise.
Social researcher Mark McCrindle said most people don't factor in how much money they spend on their job.
"Because life blurs and we pay for the rates and the water bill and the childcare fee or the weekly bus ticket, we actually are blurring what's for work and what's for personal life. We don't realise until we sit down and segment it that these are extra costs purely because we are working," Mr McCrindle said.
What it costs a family
Mathew Griffith and Cassie Kolcze are a working couple with two kids. Mr Griffith works full time as a supervisor at a sawmill, while Ms Kolcze works part-time as a receptionist at a doctor's clinic. Their combined income is $100,000, meaning they have an after-tax income of about $53,000.
Their two daughters - a three-year-old and a seven-month-old - attend day care two days a week. Every week child care costs the family $160 after the Childcare Benefit is taken into account. Over 50 weeks in a year this costs the family $8000.
Both commute to work by car from their home in the south-eastern Victorian town of Rosedale. Ms Kolcze's drive to and from work costs her $40 in petrol each week, while Mr Griffith spends $80 on petrol each week. Over 50 weeks in a year this cost the family $6000.
All up, childcare and commuting costs the family $14000 each year, which is 14 per cent of their gross income or more than one quarter of their take-home pay.
What it costs a single professional
Ben, 22, works in IT and earns $1000 a week after tax. He commutes 55km from the northern suburbs of Brisbane to the city each day. Each week his petrol costs $150 and parking in the city costs $90 a week.
He also spends $30 on public transport to move around the city for work. Half of his $100 phone bill is spent making work calls and sending work emails. He has to wear a suit to work, and the dry cleaning costs him $15 a week. He buys his lunch and two chai lattes every day, which costs him $22 a day or $110 a week.
All up, he spends $445, or almost half his take-home pay holding down his job.
Child care costs hit hard
The most recent government statistics on the cost of childcare show that out-of-pocket costs for families with one child in long day care ranges between 8.2 per cent and 9.4 per cent of gross family income, depending on the income bracket.
Parents of young children have a high cost of work due to child care, but Mr McCrindle said even childless people sink a large amount of their disposable income on their job.
"We have to keep up the corporate wardrobe with flexible dress and suits and the way our culture is it's not enough to wear the same thing a few times a week. And it's not a luxury to get a coffee in the morning or lunch out it's just how it is. You wouldn't be spending $100 a week at home on your lunch and your coffee," Mr McCrindle said.
Transport is also a major cost. Census data shows that more than two thirds of Australians (68.22 per cent) drive to work, meaning petrol costs are a major contributor to their annual cost of holding down a job. Just 10 per cent of Australians travel to work for free (meaning they either walk, ride a bike or work from home).
How to save
The easiest way for people to save on the cost of work was to work from home, Mr McCrindle added.
"Even one day at home per week, that's a 20 per cent saving on those expenses, or one day a fortnight will save 10 per cent," he said.
People can also tax deduct some expenses, such as the portion of their phone bill that they use for work. Mr McCrindle said child care costs could be reduced slightly if friends and family helped out.
"Perhaps asking grandparents to mind kids, or sharing the pick up of kids with friends will save of after school care costs. It probably can't happen five days a week but any savings will help."
Author: Sarah Michael
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