Prime Minister Anthony Albanese says that support for Australians struggling with the cost of living will be one of the main priorities to be addressed as the government plans the Budget, due in May this year.
Budget to contain measures
In a recent statement, Albanese disclosed plans for additional cost of living support to be included in the budget – a move that comes as many in the electorate face mounting pressures due to rising interest rates, inflation and natural disasters.
Albanese indicated that he has instructed the Departments of Treasury and Finance to explore viable options to mitigate the Australian public’s considerable financial strain over the next six months.
“I have asked Treasury and Finance to come up with further propositions that we’ll consider in the lead-up to the May budget this year, following the Mid-Year Economic and Fiscal Outlook (MYEFO) that we released in December,” Albanese said.
He emphasised the government's commitment to alleviating the burdens caused by global inflation on Australian citizens, without placing upward pressure on inflation in the process.
Handouts will make inflation worse
But Albanese expressed caution regarding the distribution of direct cash relief, warning that such actions might exacerbate inflation, suggesting alternative approaches like additional energy bill subsidies.
“If you … distribute additional cash to people you potentially make inflation worse and therefore don’t help to solve the problem,” he said, highlighting the success of the energy price relief plan in reducing bills rather than issuing direct payments.
“2024 will see us rolling out an additional 300,000 fee-free TAFE places,” Albanese told the media today.
“This is, of course, on top of the 300,000 commencements that we had in 2023.
“We promised 180,000 and delivered 300,000.
“A great example of us providing cost of living relief through fee-free TAFE while also addressing the longer-term issues of labour market shortages and supply chain issues that Australia has to deal with in order to continue to put that downward pressure on inflation.”
The issue of cost of living has been a focal point for unions and certain Labor MPs like Jerome Laxale and Brian Mitchell, who have been vocal about the need for more substantial relief measures to support Australian families.
The government’s response in the upcoming budget will be eagerly awaited as a step towards addressing these concerns.