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Prime Minister Anthony Albanese has revealed the government is considering new measures to help ease the cost of living crisis for struggling Australians.
The Department of Treasury and Finance has been tasked with bringing forward “new proposals” for the government to consider ahead of the May 2024 budget.
It comes amid shaky poll results for the first-term prime minister, who enjoyed strong support among the general public before defeat in the Indigenous Voice referendum in Parliament.
Since the run-up to the October 14 vote, the polls have been trending steadily downwards, and the rising cost of living has not made life any easier for the Labor Party as it tries to win back voters.
Following the Reserve Bank’s decision to raise interest rates for the 13th time in 18 months in November, and with inflation still high, Labor is having particular difficulty connecting with voters aged 35 to 49 struggling against rising mortgage payments, the latest 2023 Newspoll found.
In a speech on January 3, Albanese revealed that his government is committed to addressing the crisis.
“Our priority will be to alleviate the cost of living and at the same time relieve pressure on inflation,” he said.
“I have asked the Treasury and Finance to bring forward further proposals which we will consider in the run-up to the budget in May this year.”
Albanese later confirmed this was a request he also made to the department last year, when Labor introduced a suite of measures designed to help Australians who need it most.
He accused the Coalition of never having supported them as the Opposition, arguing: ‘No matter what you talk about, they only have one answer: negativity.
‘The lack of proposals for practical solutions. They simply say what they are against, never what they are for.
Prime Minister Anthony Albanese has revealed the government is considering new measures to help ease the cost of living crisis for struggling Australians.
His latest pledge comes after he acknowledged the hardships facing Australians in a New Year’s Eve speech in which he touted the “$23 billion in cost of living support delivered since Labor came to power in May 2022.” .
Albanese said his government would roll out more free TAFE places and continue its work towards universal childcare.
He pointed to changes to the senior pension, which takes effect on January 1, allowing pensioners and veterans to work longer without having their welfare payments reduced.
“A significant priority will be to implement all elements of our Housing Australia plan, including passing our Help to Buy legislation to get first-time homeowners into their own home,” the Prime Minister said.
‘We will continue to build for an Australian-made future, ensuring the energy transition meets not only our climate goals but also Australian jobs.
‘That’s what Australians can expect from a government that delivers. On the contrary, the Coalition has opposed every cost of living measure we have taken.’
But there are concerns about Albanese’s future beyond the next election, after the latest 2023 Newspoll found that Women, the group that turned against former Prime Minister Scott Morrison in 2022, are now also moving away from the ALP .
The Department of Treasury and Finance has been tasked with bringing forward “new proposals” for the government to consider ahead of the May 2024 budget.
Some 36 per cent backed the Coalition, compared to 30 per cent who gave their first preference to Labour.
The poll, conducted for The Australian, was based on a survey of 3,655 voters from October 31 to December 15 covering the aftermath of the failed Voice referendum.
Labor’s lead over the Coalition fell among 35-49 year olds in the latest Newspoll.
This election-deciding demographic saw its support drop from 56 percent to 44 percent in October, to 53 percent to 47 percent in December.
These are the voters with a mortgage and young children who have suffered the most financially, with 12 of the 13 RBA rate rises since Labor came to power in May 2022.
However, young voters continue to overwhelmingly back Labor despite the rental crisis, with the government holding a 66 to 34 per cent lead over the opposition.
Across all age groups and states, the Coalition has a higher primary vote of 36 per cent, compared to Labour’s 34 per cent.
In a speech on January 3, Albanese revealed that his government is committed to addressing the crisis.
But after the Greens’ preferences, Newspoll showed Labor leading 52 per cent to 48 per cent, a similar result to the 2022 election.
And there are also hopes that the pain of the cost of living crisis could be a distant memory when voters go to the polls in early 2025.
The Commonwealth Bank expects six interest rate cuts in 2024 and 2025.
This would reduce the Reserve Bank’s cash rate from a 12-year high of 4.35 per cent to 2.85 per cent by the end of 2025.
ANZ expects November’s inflation rate to fall to 4.1 per cent, down from October’s level of 4.9 per cent.
That means no rate rises in February and the Treasury expects wages to finally outpace inflation in 2024 for the first time since 2021.
Economist Stephen Koukoulas, who was an economic adviser to former Labor prime minister Julia Gillard, said Labor was likely to be re-elected with a majority or a minority with Teal support.
“Labour will win that election based on likely economic conditions: strong wage growth, low inflation, falling interest rates and budget surpluses,” he said in X.