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Newspoll: 50pc of Australians feel they are ‘worse off’ under Labor

Labor faces an increasingly angry electorate with 50pc of Australians saying they are worse-off now compared to two years ago.

Prime Minister, Anthony Albanese during Question Time at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman
Prime Minister, Anthony Albanese during Question Time at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

Labor is facing an increasingly hostile electorate with 60 per cent of the key 35 to 49-year-old cohort saying they are worse off compared to two years ago, as Anthony Albanese prepares to lean on Jim Chalmers’ mid-year budget update and a migration shake-up to win back angry voters.

An exclusive Newspoll conducted for The Australian shows 50 per cent of Australians feel they are in a worse financial position than two years ago, with the pain higher for the “Middle Australia” age group who are most exposed to interest rate rises through the soaring cost of rents and mortgage repayments.

Facing mounting economic, national security and legislative pressures, the Prime Minister will reassure nervous Labor MPs when caucus meets on Tuesday that Labor can re-engage voters concerned the government is not on top of rising cost-of-living ­pressures.

Spooked Labor MPs are calling for new measures in addition to Dr Chalmers’ 10-point, $23bn cost-of-living plan, which some government figures believe is not cutting through.

The mid-year budget update presents the government with an opportunity to increase targeted support for households and businesses amid internal debate about avoiding cash handouts or a fuel excise cut that could drive up inflation. The government response to Martin Parkinson’s migration review, expected to be released ­before MYEFO, will address how Labor will manage record ­migration levels.

The special Newspoll, revealing 50 per cent of voters feel they are worse off now compared to two years ago, follows a collapse in Labor’s primary vote to 31 per cent and a decline in Mr Albanese’s ­approval ratings. The survey of 1216 voters, conducted between November 20 and 24, showed 16 per cent were better off compared to 34 per cent who said they were about the same.

High-level government discussions have focused on the need to get through the final weeks of parliament before pivoting back to the economy ahead of MYEFO, ­expected in the second week of December.

Monthly government financial statements released last Friday revealed the budget’s underlying cash balance in the first four months of this financial year is tracking around $9bn better than anticipated in the May budget. On the back of a strong labour market, higher commodity prices and pay rises, economists predict Dr Chalmers is on track to deliver a second surplus in 2023-24 rather than a forecast $13.9bn deficit.

The government is bracing for three key economic indicators this week – retail spending, consumer price index and building approvals – ahead of deliberations on a 14th rate hike since May last year at next Tuesday’s RBA board meeting. While national security legislation will dominate the week in Canberra, Labor strategists believe the government must win the economic narrative to counter a resurgent Peter Dutton.

In question time on Monday, the Coalition ramped up attacks over cost-of-living pressures, whether Mr Albanese raised with Xi Jinping a Chinese military sonar incident involving Australian Defence Force personnel, taxpayer guarantees for renewables, inflation, new taxes and the voice referendum.

The Prime Minister, who did not rule out considering taxes on the family home in response ­Coalition questions, said “our number one priority is easing cost-of-living pressures”.

“There are three vital ways you can tackle cost-of-living. You get costs down for families, you get wages up for workers, but you can also get the budget onto a stronger foundation and we are doing all three,” Mr Albanese said.

“We recognise that fiscal policy has an impact on inflation. (Labor handed down) the first budget surplus in 15 years. Something unrecognisable for those opposite who left a $78bn deficit. We’ve got a $22bn surplus.”

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Newspoll shows that younger voters were less likely to feel worse-off with 37 per cent of 18 to 34 year olds agreeing their circumstances were worse with 29 per cent saying there were in fact better off. The dramatic fall in living standards over the past two years – which has seen an almost 10 per cent drop – have been further aggravated by the RBA’s decision earlier this month to raise interest rates again following a five-month pause.

The special Newspoll found that renters were the most likely to feel worse-off than before, with 56 per cent agreeing with this sentiment. Mortgage holders were next at 53 per cent. This compared to 45 per cent of those who owned their home outright. Women were also more inclined to say they were worse-off – 53 per cent – compared to 48 per cent of men. There was a significant difference when split along party political lines. Only 35 per cent of Labor voters considered themselves worse-off compared to 60 per cent of Coalition voters.

The lowest and highest income earning households were also the most affected. A total of 55 per cent of households on incomes under $50k and 51 per cent of households with incomes greater than $150k said they were worse-off.

Workplace Relations Minister Tony Burke on Monday also came under fire from all lower house teal MPs and other independents over his union-backed Closing Loopholes industrial relations omnibus bill, which the government intends to ram through the House of Representatives this week.

Nearly a dozen major business groups and ten lower house crossbench MPs have appealed to Mr Burke to delay a vote on the IR bill, citing concerns about unintended consequences.

Fowler MP Dai Le said she feared small businesses run and owned by migrants and refugee communities in her electorate would be negatively impacted.

“I certainly believe that on important matters such as industrial relations, we cannot simply rush through what is a very complex bill. We certainly need more time to consider these huge changes as it will have unintended consequences and ramifications to small business,” Ms Le said.

Newspoll results showing 50-50 two-party preferred has ‘shaken the Labor Party’

Western Australia teal MP Kate Chaney said she expected 100 amendments to the Closing Loopholes Bill and hadn’t seen them yet: “It’s a tall order to expect someone to be able to get across all of those 100 amendments in time. I definitely do have a problem with the speed of it. I would like to see it delayed and I think it’s an unrealistic time frame.”

Mayo MP Rebekha Sharkie said the bill was “yet another piece of hastily crafted legislation” by the Albanese government: “When legislation is rushed, mistakes are made. We cannot afford to make mistakes that will hurt small business and the economy-at-large.”

Warringah MP Zali Steggall agreed lower house MPs shouldn’t be asked to vote on the legislation until the Senate inquiry had concluded: “We should not be asked to vote on what is essentially an incomplete piece of legislation.”

Mackellar MP Sophie Scamps said the parliament was being asked to vote on the legislation “in an unnecessarily rushed manner” and without sufficient time for consideration or debate the important bill deserved: “The last thing we want right now, when small businesses are doing it so tough, is for this legislation to make it even tougher for them.”

Indi MP Helen Haines said if the government wanted to deliver sound laws and do what was best for the Australian people, it must ensure all parliamentarians had adequate time to carefully review legislation and amendments.

Mr Burke accused business groups opposing his IR shake-up of benefiting financially from its passage through parliament being delayed.

“Effectively, there are some business groups who have members where for those individual members, they are using these loopholes to underpay people,” Mr Burke said in question time.

“Some of them have significant financial gain to be made by this bill not going forward and every day it is delayed is a day that is better for them to be able to continue underpaying their workforce.

“What those organisations are wanting to do is wanting to delay, they’re wanting to complain about consultation.”

Read related topics:Anthony AlbaneseNewspoll

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Original URL: https://www.theaustralian.com.au/nation/politics/newspoll-50pc-of-australians-feel-they-are-worse-off-under-labor/news-story/35d940b3f463b0b0247ec272ff6d8041