Aussies unleash at Anthony Albanese about their nightmare before Christmas: The dire words the Prime Minister won't want to hear

An Australian mother has spoken out about how her family is struggling with the soaring cost of living despite the Reserve Bank boss insisting households and businesses are in 'pretty good shape'.

The comments coincide with research released on Friday, which found that 14 million Australians will significantly downsize their Christmas, with 5.3million of those not able to afford a Christmas meal.

The poll conducted by PureProfile on behalf of The Salvation Army interviewed 2,005 people and found about one in 10 Australians will rely on charitable support over the festive season.

The research also found 57.7 per cent will spend less on food at Christmas, 47.4 per cent will purchase fewer presents, and 41.9 per cent will refuse invitations to social events.

'In this lucky country, too many are going without food, medication and utilities, and many more don't even have housing,' the Salvation Army's Major Brendan Nottle said.

'Behind every statistic here is a real person – many desperately struggling to get by and making painful decisions on what to go without... Never have we seen a time where the gap between the rich and poor has been so great.'

But Aussies hoping for a Christmas present in the form of income support from the Albanese government will be left wanting, even though a budget update revealed a bumper tax take cushioning the bottom line.

Treasurer Jim Chalmers released the Mid-Year Economic and Fiscal Outlook on Wednesday and resisted the urge to play Santa, saying any further support measures would contribute to inflation.

'We will consider the budget conditions and the economic conditions between now and the May budget to see whether we will provide more cost of living help,' he said.

An example of the situation households are going through was posted to an Adelaide Facebook group this week, where a young mother said she was 'sick' of struggling to afford basic expenses despite having a university degree job and a husband who made decent money working in a trade.

'I'm so sick of the cost of living, and I don't want to be in this endless cycle of living week-to-week and not enjoying life, or is that what the government wants and needs,' she said.

'Seriously, I have a job that requires a degree, my husband has a job that is a trade, and we honestly still can't get in front or save.

'I'm feeling depressed about Christmas and the school holidays as I can't afford it the way I want to.

The woman complained mortgage payments were one of the main expenses crippling her finances after the Reserve Bank hiked up the cash rate in 13 of its last 18 monthly meetings.

'I just can't make ends meet.'

Interest rates are now at 4.35 per cent, up from 0.01 per cent in early 2020, which has plunged millions of Australians into mortgage stress.

Nearly half of all home loan borrowers, at 48.5 per cent, are meeting the mortgage stress test of paying one-third of their disposable income to make minimum mortgage repayments, according to the Australian National University's Australian tax and welfare system model.

The mother asked the Adelaide Facebook group if selling her house would be a way to get ahead.

'The only way we can get in front is sell our house and pocket the cash or invest.'

'We can't refinance as have bad credit rating at the moment due to the struggles and occasionally paying things late. Our families are no support.'

'Seriously how are people financial these days? I just can't make ends meet.'

RBA governor Michele Bullock recently told an overseas conference that frustrations over interest rate hikes were 'noise'.

Ms Bullock, who earns more than $1million a year, was speaking in Hong Kong at a meeting of central bank governors, which also included her predecessor Philip Lowe.

'We have, like other countries, raised interest rates much more quickly than we have in the past, and that has created, in fact, a lot of political noise and a lot of noise from the general public,' Ms Bullock told the conference.

'Despite that noise, households and businesses in Australia are actually in a pretty good position. Their balance sheets are pretty good.'

Ms Bullock said households had built up 'large savings buffers' through the Covid pandemic, which had remained 'largely intact'.

'Housing prices are rising again, much to everyone's surprise, so that's sort of helping people feel a little bit more wealthy,' she said.

Sydney's median house price has soared by 12.1 per cent since January to an even more unaffordable $1.397million, CoreLogic data showed, stopping younger people from getting into the property market as population growth soars.

Members of the group who responded pleaded with the woman not to sell her house.

'Don't sell your house. You'll regret it,' one said.

'I don't have the answers unfortunately but could you get into a financial advisor to have a look at your income and expenses and work out a plan?'

'Everyone is in the same boat. Please call the bank and tell them of your hardship, they lowered my rate, agreed another.

'Also call you Member of Parliament both state and federal. They need to know what the people that voted them in are facing. If you do not speak up the government will assume you are doing well.'

'Fortunately I don't have bad credit but seriously concerned it could happen soon,' another said.

'I am so stressed about Xmas and haven't shopped. First time in six years we don't have a holiday planned. We are super good with money btw, the shopping and general cost of living is getting higher every week.'

'What would selling the house really achieve?' yet another said.

'You'll have some spending money for a while and then be back to square one, only in the volatile and not-enough-houses rental market.'

Another said she agreed 'this is how the government seems to want it' and referred to the situation many Aussie households are struggling with as a 'silent depression'.

Others encouraged the woman and reminded her there were still plenty of ways she could enjoy the holiday season that don't cost a fortune.

'The best things in life are free, as long as you have a home, food, health and your family... There are so many things to do that don't cost a thing,' one said.

'I think part of the key in that statement is the way you want it ... We have to change to suit the ebs and flows of life,' another said.

'Don't get into debt for instant gratification, find low cost fun things to do with the kids. Bonding moments can be cooking meals together, playing a board game or sandwiches at the park with our friends. Remembering the good bits of life really helps,' a third added.