The federal government is facing mounting pressure to introduce more cost of living measures in the upcoming budget.
Labor says it’s dedicated to dealing with the cost of living crisis but it has a delicate balancing act on its hands.
“Labor is dedicated to tackling the cost of living crisis,” Andrew Leigh, Assistant Minister for Treasury told 9News.
“We’ve had the trifecta of moderating inflation, increased real wages and lower unemployment.”
Interest rate cuts are potentially still a way off as the Reserve Bank reveals around five per cent of borrowers are spending more on repayments than they earn.
“There is a significant group of Australian households who are still struggling here, and there’s probably no relief for some time to come,” AMP’s Chief Economist Shane Oliver told 9News.
“There’s a limit to the extent to which they can cut back on spending, or work longer, or sell off assets or run down bank deposits and I suspect that limit is now starting to be reached.”
Shadow treasurer Angus Taylor says it’s not enough.
“We’re facing Labor’s cost of living crisis and we’re facing uncertain economic times,” Taylor said.
From July, every worker will receive a tax cut but there’s a push to help even more struggling Australians with calls for the next budget to include a boost to JobSeeker and Youth Allowance.
“One in three peoples’ incomes are so low that they won’t get any benefit unless we fix income support,” Cassandra Goldie, CEO of the Australian Council of Social Service (ACOSS) told 9News.
“We must deliver the missing piece.”
Leigh said: “Our focus on last year’s budget was focusing on people on income support.”
As the Treasurer manages expectations, he has consistently ruled out a big cash splash in the budget but he has pointed to providing more cost of living relief.
What that looks like though, won’t be known until it’s unveiled in May.
