Take the Tipp on the cost of living

100 dollar notes

A furore has erupted over Sydney’s salary cap concessions after the reigning premier announced the signing of key Crows forward Kurt Tippett.

Representatives of Hawthorn, Brisbane and Adelaide have all questioned the additional 9.8% increase afforded the Swans in their salary cap for the increased cost of living allowance.

While it seems that a major factor in Tippet leaving Adelaide was the desire to leave the pressured existence of an AFL player in a footy-centric city, Adelaide president Rob Chapman lamented the fact Tippett was leaving with ”Certainly from my discussions with Kurt, he really enjoyed himself at the Adelaide footy club, but the fact was he was looking to move away from that fishbowl existence”.

Tippet himself told that he came to his decision “This was a combined football/lifestyle decision and the balance between the two… I was born in Sydney, I have a lot of friends and family there, and this offers me a chance to play football in a lifestyle which I really enjoy.

“It’s obvious the Swans have a very special culture, in addition to a very good team. I look forward to being part of it.”

However the fact that Sydney have extra room in their salary cap due to the concessions has been looming large over the trade. Swans president Andrew Ireland defended the cost-of-living allowance afforded to the Swans, an additional $862,000 this season in the salary cap.

“We’ve got a cost of living allowance, it is clearly dearer in Sydney … there’s no slush fund from our allowance, every player on our list gets (an extra) 10 per cent.”

Hawthorn president Andrew Newbold said of the living allowance ”I think it is just an outdated policy and one that we as a league should have reviewed a long time ago,” he said.

”I don’t know that Melbourne and even Perth costs are that much lower than Sydney now. I think it is an archaic policy setting that needs to be reviewed.” Newbold’s predecessor at Hawthorn Jeff Kennet remarked that the concessions were “20 years out of date” and told how it was almost as expensive to live in Melbourne as it was in Sydney now. Kennett was also part of the group calling for a review of concessions in 2003 in the wake of the Brisbane Lions third consecutive premiership.

The Figures

The most recent House Price Report conducted by Australian Property Monitors showed that for the March 2012 quarter Sydney had the highest median house price of the AFL states at $641, 037, ahead of Perth ($531,065), Melbourne ($529,077), Adelaide ($437,085) and Brisbane ($433,244); with a national average house price of $535,080.

For apartments, it was a similar story, with Sydney’s $462,145 unit price 13.46% higher than the national average of $406,653, 18% higher than Melbourne ($389,491), 36% higher than Brisbane ($338,910), 62% higher than Adelaide ($285, 651) and 35% higher than Perth ($340,947).

Sydney recorded a record high for median weekly house rent with $500 per week – compared to the national average of $411 and, along with Darwin, also tops the median rents for units in Australian capital cities at $460 a week compared to Brisbane ($365), Melbourne ($350), Perth ($350) and Adelaide ($280).

Is the cost of living in Melbourne – as reflected in house prices – really almost as high as Sydney?

In a word: no.

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8 Responses to Take the Tipp on the cost of living

  1. slayer9 October 10, 2012 at 2:37 PM #

    So the only cost of living is either paying off a house or paying rent? Go to Perth & see how much day to day living costs!

  2. Josh Drake October 11, 2012 at 6:11 PM #

    I’m sorry but the entire argument is so flawed I don’t even know where to start.

    Only one thing really needs to be said though: What about the difference in the cost of living between Melbourne and Adelaide? Why don’t Melbourne clubs have a higher salary cap than Adelaide clubs??

  3. Panache October 13, 2012 at 9:36 PM #

    Lets get this clear. If you are on a salary of $200,000 , 10% extra gives you $20,000 extra to spend. This is about $400 per week extra. Now, I am pretty sure that you can get a significantly better Sydney apartment with that money than you could in Melbourne with $400 less. I know there is more to this but the principle remains.

    • MalceskisLeftBoot October 15, 2012 at 6:55 PM #

      Tax? You evading it? Otherwise the correct maths is $210 per week extra.
      And thats if you assume the food, fuel, clothes, alcohol, etc is not also AT LEAST 10% more expensive.

      Having lived in Sydney for most of my life, and visited all of the capital cities in Australia, and now live in Auckland – I can safely safe it is BLOODY expensive. And recently rated the second most expensive in the world behind Tokyo.

      Sydney should be asking for an INCREASE in the COL. 9.8% is an absolute joke, and should be 15%.

  4. mollyfud October 17, 2012 at 9:59 PM #

    I have no issue with the Swans/Giants have a cost of living increase in their salary cap but if it is for cost of living, then the Swans minimum wage should rise by that percentage that they are given extra !!!!

  5. billy78 October 18, 2012 at 12:37 AM #

    I agree with Josh Drake but I will make an attempt to start:-

    1. The concept is fundamentally flawed unless each club’s salary cap is adjusted to a defined cost of living index.

    2. ‘The Figures’ as they are referred to are laughably inadequate basis for any analysis, never mind conclusions.

    3. The policy is / was nothing more than AFL interventionism in the “developing markets”.

    Ended up on this site looking for some draft / trade news / rumour etc. Registered just to pass comment on this garbage. Only the second time I have ever registered on any site, ever. I never went back to the previous one either.

  6. arch@M32 November 12, 2012 at 8:15 PM #

    Home costs more to buy but it should also sell for more too. Using housing alone as a basis for working out a cost of living, to me, seems extremely flawed.

  7. Adrian Appleyard December 19, 2012 at 9:34 AM #

    This 2011 survey for the Economist – https://www.eiu.com/public/topical_report.aspx?activity=reg&campaignid=wcol2012 – shows Sydney at number 5 for cost of living out of 130 world cities:

    http://media.economist.com/sites/default/files/imagecache/original-size/20120218_WOC577.gif

    Not sure if they included other Australian cities in the survey.




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