Australia may be in a technical GDP Per Capita recession now but you only really feel it's a recession if you've lost your job or the value of your house is going down substantially. At this point unemployment hasn't spiked so it's a long bow to draw to say we're in a conventional recession.
That being said, living standards, for those who spend every dollar they earn, are falling, because incomes are not keeping pace with inflation. For everyone else who doesn't spend every dollar they earn, there may be less room for saving but they can still afford everything they need.
An interesting indicator came out today about new car sales. It could be a pointer to leaner times ahead, or it could be a structural shift in the demand for cars. Either way, we won't know until a year, possibly more down the track for sure.