Under Labor, cost of living pressures have worsened to crisis levels due to high inflation, declining real wages, and skyrocketing grocery and energy bills.
These factors are just some of the findings from the Interim Report of the Select Committee on the Cost of Living that was released today.
The Report delves into some of the causes of the cost of living crisis and outlines 11 major findings, including:
Real wages are not growing and have deteriorated due to high inflation;
High energy prices are having a significant impact in all sectors of the economy and that more supply will reduce the cost of energy;
Greater supply and reforms to domestic policy settings are required to address the need for additional housing; and
The increasing cost of food and groceries is a major contributing factor to the cost of living crisis.
With many Australians struggling to put food on the table due to the cost of living crisis, the charitable and not-for-profit sector are seeing an increase in the demand for services. But as demand continues to grow, these organisations are struggling to keep up due to their own cost pressures and lower levels of charitable giving.
With persistent inflation and a recent tenth interest rate rise under Labor, the Interim Report considered the relationship between Government expenditure and monetary policy.
It found that the most effective way to reduce inflation was to get fiscal policy moving in the same direction as monetary policy - something that is not happening right now.
Senator Jane Hume said the Labor Government must address the findings of this damning report in its upcoming Budget by showing restraint in its spending.
“Despite Labor’s promise to lower the cost of living prior to the election, cost of living pressures have only compounded since Labor came to government and now more Australians are turning to charities for assistance to make ends meet.
“Labor’s increased spending is contributing to the cost of living crisis by adding to inflationary pressures and expectations, forcing the Reserve Bank to do all the heavy lifting to bring down inflation.
“Australians are having to make difficult decisions about their own budgets right now. I would hope Jim Chalmers is prepared to do the same with his budget and rein in spending to help bring down inflation.
“If Labor delivers another big spending Budget, it will only make a bad situation worse and all Australians will pay the price.”
The Committee is seeking submissions from all sectors of the economy and encourages ordinary Australians to complete the short survey available at yourcostofliving.au.