Private Members Statement: Cost of Living

Last month Albury Wodonga Regional FoodShare revealed that over 2,000 people flooded their service for food relief in December. These are local families, pensioners, and individuals who are struggling to put meals on the table at a time when no one should have to go without. Local woman Lisa was one of those who used the food agency for the first time. She revealed that unexpected illness had stopped her from working and hit hard at her household budget. Lisa shared:

"I've been struggling to do activities with my kids over the school holidays, due to the soaring cost of groceries. This food aid is helping to give me some leeway."

 

New South Wales Mental Health Commissioner, Jennifer Black, revealed how the cost-of-living pressures are driving up feelings of isolation and loneliness. She said:

"If you're under financial pressure, you might not be able to afford your mortgage or your rent … you might not be able to afford some of the social activities that you would normally do."

 

Young people have admitted they are having to say no to a social catch-up with friends at local cafes, restaurants and the pub, or even going out on a date—they say they simply cannot afford it—while older people are also bunkering down, focusing on their mortgage repayments and responsibilities over a dinner out with friends. As we modify what we buy or how we spend our money, the impacts are also being felt by our partners, spouses and especially our children.

 

In the 2024 report Impossible Choices: Decisions NSW communities shouldn't have to make, researchers from the University of Technology Sydney detailed how children are bearing the brunt of the growing cost of living pressures. Some parents tell of cutting back spending on meals, essential health care and education resources.

 

Three in four households sacrifice spending on their children, half of all households reduced spending on health and wellbeing essentials, and one in five households delayed early childhood education. Peak social services body NCOSS commissioned the research. Cara Varian, CEO of NCOSS, said of the data:

 

Low-income families should not be forced to choose between paying for food or medication. The basics of life should not be considered a luxury that most low-income families cannot afford.

Economists say the current cost-of-living crisis is hitting New South Wales households twice as hard as the 1990 - 91 and 1982 - 83 recessions, and significantly more sharply than any period dating back to 1959. A significant pressure that families and individuals are facing are mortgage costs.

 

Since May 2022, the Reserve Bank of Australia [RBA] has increased our cash rate 13 times to its highest level in 13 years. With the average mortgage now sitting at a record $642,000, many families are acutely feeling the mounting effects of our cost-of-living pressures and are struggling.

 

The RBA's action, to offset inflation, has marked the fastest tightening cycle in a generation. Last year, when revising up economic growth forecasts, Michelle Bullock, the Governor of the Reserve Bank of Australia, said that the stronger outlook was fuelled by "ongoing spending and recent announcements by Federal and State and Territory governments". She also said:

… make no mistake, inflation is still too high and the Board does remain concerned about the degree of excess demand in the economy.

That is right: Ongoing spending by government placed pressure on interest rates to remain high throughout 2024. Now, whilst the Government is spending record amounts—as evidenced in its own budget papers—the past two years have seen the winding back of support developed by the previous Liberals Nationals Government that was designed to help some of our most vulnerable citizens.

 

This includes axing the $250 regional seniors travel card as well as ending the $250 energy rebate for households and the $150 back-to-school vouchers for families. I acknowledge the hardship and stress that many individuals and families in our community are experiencing.

 

The people of the Albury electorate and throughout New South Wales deserve an economic plan that prioritises responsible budgeting and practical, common-sense measures to relieve cost-of-living pressures. We need to be providing opportunity, protecting jobs, and building a future where individuals and families can get ahead, not just scrape by.