That is according to CommSec’s economics team who broke down percentages of what Australians spent their money on last year.

They spent less on newspapers and books to compensate but more on going out for takeway, alcohol and pharmaceutical and cosmetic products.

CommSec chief economist Craig James told The Age  that there was clear evidence that a ”cocooning effect” took hold during 2009 due to heightened money and job concerns.

”When there’s bad times around, you cocoon yourself at home and you buy takeaway and liquor rather than going out on the town,” he says.

He said Australians “came out of their burrows” towards the end of the year when the financial side of things started looking better.

And it’s likely to continue into 2010 with the economy still at fragile heights.

At least however, Australia’s unemployment rate has been stable and hasn’t risen too much.

KPMG demographer Bernard Salt told The Age many of the spending trends of 2009 will continue.

”It’s quite clear that we got ourselves through this recession by binging on drinks, drugs and burgers,” he says.

”The amount spent at pharmacies has been on the up for a while, reflecting not only our ageing population but our lifestyle shift towards wellness and wellbeing.”

But surely he is speaking from a generation or two ago when saying this.

The majority of the current generation like to experiment and that appears the overall view of Generation Y.

There is still the minority that don’t believe in sex before marriage.

Some live and die by the rule.

In a revealing interview with The Australian Women’s Weekly, Mr Abbott said women should try to stick to ”the rules” when considering sex before marriage.

When they cannot abstain, women should use contraception, the former Catholic seminarian says.

“Look, I was subjected to a one-hour grilling from the editor of the Australian Women’s Weekly, I was asked direct questions and I did my best to give an honest answer”, Mr Abbott told Radio 3AW today.

“I think all of us should act in ways that value ourselves. I’m trying not to be prescriptive here, I am trying not to be a preacher, but if someone asks my advice I would say don’t do anything you will live to regret if you can possibly help it.”

Asked to reveal his advice to his daughters, Mr Abbott told Neil Mitchell on 3AW: ” They shouldn’t give themselves away lightly.”

He said his advice to males was ”Much the same – treat people with respect and don’t act in ways that demean other people.”

It is getting ridiculous with loads of stories telling the same old problem – getting booked with the car parking metre expiring just minutes before they get back to the car.

These people discover a car parking ticket to as much as over $100.

This is an entire days’ work for some people.

For others, it’s a little bit of pocket money.

But for those who get hit with these fines are unlucky and some struggle to get by in life than receiving a ticket or two from councils.

These council ticket inspectors need to have a little more sympathy for the country’s residents and at least give them more time to pay for the metre than just a few minutes in some cases.

It really is discouraging for those who want to drive; for those who really want to explore and get about.

Every year more and more people are getting dumped with a car parking ticket.

Some decide to not pay them but now they’re adding on 10 per cent if the ticket isn’t paid for by the due date.

Mobile phones have never been more important to Australians given that Christmas cards that were sent to loved ones in the past week may not get to the recipient until after the new year.

More and more Australians are forced to opt for text messaging which is a faster and more efficient way anyway.

But you have to wonder if this will affect sales of Christmas cards in the future with a lot of adults getting a taste of sending texts to their loved ones for perhaps the first time.

Some adults aren’t educated with mobile phones but are now being forced to.

The decision for Australia Post to go on strike at such a critical period is disastrous for the nation.

Workers aren’t happy with their pay and are prepared to make a statement.

The statement is a massive one and could mean that Australia Post will lose significant respect amongst the many communities.

Firstly, the first home buyers grant was supposed to be worth something. Giving away as much as $32,000 for a first home buyer appears an attractive offer.

But that was until this week when the interest rate hike continued.

ANZ, Commonwealth Bank and St George have increased interest rates across mortgages in excess of this week’s official interest rate hike, but have stopped short of Westpac’s super-sized increase.

The hike came as Commonwealth Bank warned pressure would remain on all banks to push through further interest rate rises above the Reserve Bank as funding costs soar.

Commonwealth Bank yesterday said it would increase interest rates on its range of standard variable mortgages by 37 basis points, while ANZ took a slightly softer approach, raising mortgage rates by 35 basis points.

Westpac sparked a furore this week when it raised interest rates across its variable mortgages by 45 basis points, nearly twice the level of the Reserve Bank’s 25 basis point rate hike.

It has now given the first home buyers grant little value particularly with greater rate hikes expected over the next year.

Maybe it was needed to boost the economy; but at the same time the government has suckered first home buyers into a mighty punch; bigger and even more hurtful than Danny Green’s.

The first home buyers grant is simply a taste tester; an option to tempt you into the market. But once you’re there, look out.

Woolworths will team up with Optus after having signed a Mobile Virtual Network Operator (MVNO) which will allow them to use their current mobile infrastructure.

The Woolworths Everyday Mobile brand is expected to target the everyday, casual mobile phone users who are after easy, simple mobile phone deals.

After extended research in the market, it was revealed that many mobile customers were fed up with the confusing and technical plans and mobile phone packages currently in the market.

Woolworths have targeted their new service specifically at these complaints, offering pay before you use system and offering highly competitive rates for customers.

The new service will charge 15 cents flag fall for each call and 15 cents for 30 seconds. Customers can also send standard text messages to mobile numbers for 15 cents.

Everyday Mobile SIM packs will sell for $2 starting today from Woolworths Supermarkets, BIG W and Dick Smith stores across Australia.

Alex Cochran, business manager for Woolworths Everyday Mobile, said listening to the public was vital in their decision making.

“Our customers have told us the amount of plans, caps and bonuses is confusing and what they really want is clear and transparent pricing and everyday value,” he said.

“Woolworths Everyday Mobile cuts through the confusion and offers call rates that are easy to understand. There are no unnecessary extras, no lock-in contracts and no hidden charges making it the perfect choice for people who just want a simple mobile solution.”

After the successful transition into the petrol station industry, Woolworths now appear to be stamping their claim as one of Australia’s leading organizations.

While many may argue the move is just another blow for independent and local companies around the nation, with multinational companies continuing to dominate the market, positives do exist.

Regardless of their motives, Woolworth’s entry into the mobile phone market signals many good signs for the public, with an increase in competitive pricing and more choice for the mobile phone user.

It also begs the question. What other mutlinational companies will be tempted to join the mobile phone market?

WHAT’S YOUR OPINION?

Will you consider using the Woolworths Everyday Mobile pre paid deal?

Are you satisfied with the pricing of the new service?

www.youtube.com/watch?v=hQUt8C4iVKc

Solar power currently accounts for less than 2% of total power sourced in Australia.

It is widely accepted that the dry, hot and sunny climate of Australia makes it an ideal candidate for greater utilisation of solar power.

However, the cost of solar power is presently higher per kilowatt than other energy sources (such as coal) due to the cost of solar panels.

From May 2008, an $8000 Federal Government solar panel installation rebate was restricted to people who earn less than $100,000 annually, reducing the number of panels that would have been installed by an estimated 60%.

From June 2009, the rebate was cut to $4000 and the means test was removed. This was because of the overwhelming popularity of the program, which the government hadn’t expected.

In the 2009-2010 Federal Budget the Treasurer Wayne Swan announced $1.5 billion over 6 years in a new Solar Flagships program.

In the same budget, Mr Swan announced $2 billion for ‘carbon capture and storage’ – often referred to as ‘clean coal’ – over 9 years.

Some have estimated that covering 4% of Earth’s surface with solar panels could supply all of the world’s electricity.

THE VIEWS

John Hepburn in a blog for Crikey.com.au:

“The contrast between renewables and supposed ‘clean coal’ couldn’t be more stark. The investment in solar is expected to create 1GW of real, emissions free power within the next 6 years. Wheras the larger investment in CCS will support the development of demonstration projects over 9 years. Reality vs Illusion.

Of course, the decision to give another $2billion to support the coal industry is just a political sop to an industry that has the Government over the barrel. The coal industry is well capable of funding their own research and development into CCS if they were really interested, but so long as they can get taxpayers to continue subsidising them they are unlikely to get their snouts out of the trough.”

Treasurer Wayne Swan in his 2009-2010 Budget Speech:

“…we are also absolutely determined that our nation building plans will create the low pollution economy Australia needs for the future. That’s why the Government is introducing the Carbon Pollution Reduction Scheme and expanding the national renewable energy target… I am pleased to announce the Government will also invest $4.5 billion in a new Clean Energy Initiative — the critical infrastructure that supports low emission technologies and creates low pollution jobs. We will establish Renewables Australia, a new innovation body to promote the development, commercialisation and deployment of renewable technologies. We will establish up to four new Solar Flagship projects to demonstrate the viability of solar technologies.
And we will support projects that demonstrate carbon capture and storage on an industrial scale from coal fired power stations.”

BREAKING IT DOWN

A) The Rudd Government continues to hedge its bets without committing fully to a program to convert Australian power to renewable sources.

The government continues to subsidise the coal industry by using taxpayers dollars to pay for carbon capture research. It could simply put money into solar power and make a massive difference to that industry and the environment.

B) The solar power industry in Australia is ready to take off, it just needs the right support.

The $8000 solar rebate was seized upon by the many Australians who want to contribute positively to the environment. Slashing the rebate is a backwards step for the solar industry and the environment.

WHAT’S YOUR OPINION?

Is solar power the way forward?

Should the Australian Government be investing in CCS technology, or in already-proven technologies?

Should the Australian Government reestablish the $8000 solar rebate?

Is Australia doing enough in the field of renewable energy?

CSR Limited is a heavyweight Australian company that produces aluminium, sugar products and construction products.

On June 16, 2009, the company announced its plan to demerge its energy and sugar businesses to make two distinct companies.

Investors responded by sending up the share value of CSR by almost nine per cent to $1.63 at midday on June 17.

CSR announced that it had been looking to divide the business for quite some time but was waiting for the correct market conditions in which to do so.

THE VIEWS:

Stephen Bartholomeusz for Businessspectator.com.au:

“It appears… that CSR believes that it can de-merge the business in some form and both create value for its shareholders and options for both the sugar entity and its remaining businesses.

If it pursues a pure demerger and simply gives the business to its existing shareholders then the issue of market timing is largely irrelevant. It might be more pertinent if CSR decides to raise some extra capital at the time of the demerger – it has yet to have a discussion with its bankers about the balance sheets that would be acceptable for both entities.

In fact, CSR believes the demerger will create value. Agribusinesses, particularly those with bio-fuel dimensions – CSR is in the process of doubling its ethanol production – trade at a significant premium to the multiples on which CSR is valued today. CSR’s co-generation capacity at its refineries adds a further renewable energy dimension to the business.”

Elizabeth Knight for The Age:

“The CSR board is taking a punt that the equity market rally that began a couple of months back is going to provide it with an opportunity to real shareholder returns.

It did this trick once before – and it worked. It demerged its US building materials businesses from its Australian operations and the sum of the parts turned out to have more sharemarket value than the whole.

But it’s a trick that only works when share markets are rising and it only works on a sustainable basis if the two daughters of the demerger are able to flourish in their own right.

Clearly there is some scepticism about this among the investment banking community.”

BREAKING IT DOWN:

A) It could go both ways for CSR, so the move is certainly a risk.

If either of the businesses is loaded with too much debt as a result of the demerger, bad times could lie ahead.

B) Investors will need to wait some time before seeing which direction the offspring companies will take.

The success or failure of the move will not be immediately apparent. Investors should approach with caution.

WHAT’S YOUR OPINION?

Is the demerger a good idea?

What kind of impact will the demerger have on the rest of the sugar industry and the rest of the construction products industry?

How will investors respond to the news?

Would you invest in either of the new companies?

In May 2009, 4946 Victorian applications to the Federal Government’s first-home buyer’s scheme were submitted, making it the biggest month in the history of the scheme.

The second biggest month for Victorian applications was in October 2001, when 4569 applications were submitted.

Since July 2000, people buying a house for the first time have been eligible to receive a $7000 grant from the government.

This amount was temporarily tripled to $21,000 in the Rudd Government’s economic stimulus package, announced in October 2008.

The success of the scheme in May has been seen by some as a reaction to speculation that the government grant will be halved in coming months.

In addition, some economists have predicted that the Reserve Bank of Australia’s recent trend of cutting interest rates is due to stop.

Commercial banks in Australia have also indicated that they will most likely be increasing interest rates in the near future.

THE VIEWS

Professor Julian Disney, chair of the Rudd Government’s advisory committee on housing affordability, as quoted in the Sydney Morning Herald:

“I don’t think there’s much room for doubt that the [extension of the first-home owners] policy has led to prices being significantly higher than they would have been… That isn’t necessarily bad, it’s a question of degree – by how much and for how long? It may have been a necessary step for a short-term outlook but we have to make sure it doesn’t go on for too long and I think it should have been wound up more quickly.”

Jessica Irvine, economics writer for the Sydney Morning Herald:

“The Rudd Government’s boost to the first-home owners grant stirred up many old wives’ tales that have sustained the great Australian dream of home ownership. It’s time to dismiss a few of them.

Across the country, baby boomer parents whisper in the ears of their progeny that now is the time to buy. They warn: “You’ll never get in if you don’t.” They say: “You’re better off paying off your own mortgage than your landlord’s.” For those not yet convinced, they resort to the old catchcry: “Rent money is dead money.”

What they forget is that average house prices are now seven times the average annual salary, up from about three times when the boomers first bought in. They forget, too, that in the months since the temporary boost to the first-home owners grant – $7000 for established homes and $14,000 for new ones – house prices in the sub-$500,000 category have ballooned.”

BREAKING IT DOWN

A) The first-home buyers grant represents an opportunity, but it cannot be blindly used.

First-home owners need to make sure they are paying the appropriate price for a house, and not an inflated price.

B) Ensuring low interest rates is equally important as the first-home owners grant.

People with mortgages want stability in terms of their interest repayments, and they want them as low as possible.

WHAT’S YOUR OPINION?

Is the first-home owners grant scheme a success?

Has the Australian Labor Party delivered on its promise to improve housing affordability?

Is there an alternative measure that could be taken to help first-home owners?

Should the first-home owners scheme be extended?