The Australian government is considering various alternative options to help households struggling with financial challenges, particularly due to inflation. Prime Minister Anthony Albanese has emphasized that their priority is to provide cost of living relief while managing inflation. He highlighted plans to work with the Treasury and the Department of Finance to develop new cost-of-living policies ahead of the May budget. The government is exploring options such as reducing energy prices to provide relief to households.
The prime minister acknowledged examples of effective relief measures such as the fee-free TAFE policy and increased Commonwealth rent assistance, as well as initiatives designed to help more Australians live in their own homes. The support aims to help ease the financial pressure on Australians facing global inflation brought on by the ongoing supply issues related to the pandemic and the impact of the war in Ukraine.
However, the opposition is calling on the government to control inflation by reducing spending rather than offering cost-of-living assistance, expressing concerns that recent changes to labor mobility schemes will lead to increased costs for everyday goods, further impacting Australians affected by financial pressure.
While Australians continue to save money, the growth in bank deposits has slowed over the past three months as households use their savings to deal with rising costs. Total credit card debt accruing interest charges has increased, prompting advocacy groups to urge the federal government to consider increased income support and other measures to help ease the cost of living. They argue that the soaring rent and energy costs are causing severe financial distress, and Australians need more support.