Cost-of-living crisis: How Australian politicians are grappling with rising inflation and surging prices
Introduction – Rising Cost of Living
Cost-of-living distress is a growing concern for Australians, as inflation continues to soar, adding to the issue of housing affordability. With a surge in the number of working families and low-income households facing financial difficulties, citizens are looking for practical solutions from those in power. This article examines the impact of rising costs of tolls, petrol, gas, electricity, and rent on citizens and explores potential solutions, including government policies that could help ease the burden.
The Growing Concern
Australians are growing increasingly concerned about cost-of-living distress. Despite working hard, they are not seeing an improvement in their standard of living. This is particularly true for low-income households and families living in suburban areas, where tolls are a significant cost-of-living pressure. Sydney’s M4 toll road, for example, can cost drivers as much as $4,516 annually, which is a major financial strain. While both political parties have promised to minimize the impact on drivers, it remains to be seen how effective their policies will be.
The Impact of Rising Cost of Living
Rising costs are making it difficult for Australians to improve their standard of living. While higher wages would help, many expenses are outside the government’s control. The prices of petrol and groceries, for example, are proving difficult to lower. Housing, however, remains the most pressing issue as it is a fundamental need for everyone. As housing affordability worsens, there is a fear that the cost-of-living crisis will only get worse. Interest rate rises, for example, could lead to another property market boom, further worsening Australia’s housing affordability crisis.
The Rental Crisis
The rental crisis is also set to worsen as developers struggle to make the case to break ground on new property due to the rising costs of building supplies and interest rates. This is a nationwide problem, exacerbated by a shortage of housing supply, particularly in southeast Queensland, which is experiencing a boost in population as immigrants and international students return to the state. While the intake of migrants is seen as necessary for sustainable economic growth and to fill a skills shortage, there is simply not enough housing to accommodate the growing population.
Potential Solutions
As the pressure of cost-of-living distress increases, governments are being called upon to find solutions to ease the burden on Australians. One possible solution is to reduce the cost of tolls and electricity. While the federal and state governments are working on policies to achieve this, reducing the prices of petrol and groceries is proving challenging. A more long-term solution could be to address the shortage of housing supply, which requires a collaborative effort between the government and the private sector.
Key Takeaways
Cost-of-living distress is a growing concern for Australians, with inflation exacerbating the problem of housing affordability. Rising costs of tolls, petrol, gas, electricity, and rent are putting financial strain on low-income households and families, and while governments are developing policies to ease the burden, the issue of housing supply remains a challenge. To achieve a sustainable solution, a collaborative effort between the government and the private sector is necessary to address the shortage of housing and ease the financial burden on Australians.
Xponential Advisory – How We Can Help
Xponential Advisory‘s Financial Advisors can play a crucial role in helping people facing cost-of-living distress in Australia. With their expertise in finance and investments, they can provide personalized advice and guidance to individuals and families struggling to make ends meet.
