Aussies thousands of dollars worse off under Labor as economic growth slows to 30-year record

As Jim Chalmers claims the economy is showing signs of improving, record government spending and migration are masking the real damage with household budgets.

Australians are thousands of dollars worse off under the Albanese government, as experts claim the country is suffering a ‘recession of the people.’

New national account data revealed economic growth has slowed to its lowest annual rate in more than 30 years, outside of the COVID-19 pandemic, as government spending and high levels of migration mask the true damage to household budgets.

The country has now suffered seven consecutive quarters of negative per capita GDP, with rapid population growth outpacing the growth of the economy. That’s despite the introduction of Stage 3 tax cuts and recent energy rebates.

Australia’s population increased by 615,300 people in the 12 months to March this year, to 27.1 million people. 83 per cent of the growth was attributed to net overseas migration. More than 1 million migrants have arrived during Labor’s term.

Federal Treasurer Jim Chalmers. Australia has now suffered seven consecutive quarters of negative per capita GDP. Picture: NewsWire / Nikki Short

Economist Chris Richardson said living standards remain 10.5 per cent below their peak three years ago. For the average Australian household, this works out to be a drop of roughly $5000 in disposable income.

“The hope had been that big tax cuts and big electricity subsidies would start to put some momentum back into the economy. That didn’t particularly happen (today),” Mr Richardson said, while noting the tax cuts would continue to wash through in future results.

Mark Bouris, the founder of Yellow Brick Road said Australia was struggling through “a recession of the people”.

“The people are feeling it. Anyone who has anything to do with government is not feeling it. From an economic policy point of view, I’m appalled. Household expenditure remains very weak. The major contributor to a very slight increase in GDP was government expenditure” Mr Bouris told The Daily Telegraph.

Mark Bouris, Executive Chairman of Yellow Brick Road said Australia was experiencing a ‘recession of the people.’ Supplied

Overall, spending from both federal and state governments was worth $196 billion in the September quarter alone.

The Commonwealth public service has also grown by 26,000 permanent staff since Labor won the 2022 election, boasting a whopping 365,000 employees, with the annual bill to taxpayers $37-billion.

Speaking on Wednesday, Treasurer Jim Chalmers acknowledged the new figures pointed to a “weaker economy than was anticipated”.

“We don’t pretend that when we see these welcome developments… that people are feeling better or fairing better… people are still under pressure” Dr Chalmers said.

Independent economist Saul Eslake believed that ‘if it hadn’t been for the extraordinary population growth we’ve had since the middle of 2022… Jim Chalmers would have had to have been explaining the ‘r’ word (recession).”

Shadow Treasurer Angus Taylor said the numbers were proof of Labor’s ‘Big Australia, Big government strategy.’. Picture: NewsWire / Martin Ollman

Shadow Treasurer Angus Taylor said today was proof of the Labor’s “Big Australia, Big government strategy”.

“This government is building bureaucracy, not businesses,” Mr Taylor said.

Industry groups described the economy as “flailing”, with Australian Chamber of Commerce and Industry CEO Andrew McKellar saying businesses and households were ‘really starting to feel the pinch.’

Bran Black, the CEO of Business Council Australia said ‘today’s numbers show we must reject anti-business policies, like the recent Industrial Relations changes. Families and businesses are hurting.’

Meanwhile, with the election date yet to be determined, many of the nation’s bookmakers now have Peter Dutton in front. A spokesperson for the TAB confirmed the Coalition moved into favouritism last month and are now paying $1.73, with Labor at $2.05.

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