Real-world pain weighs heavy on Australian families

Anthony Albanese is confronting record business insolvencies and rising JobSeeker welfare numbers, as voters seek more cost-of-living support heading into an election year. Picture: Martin Ollman/NewsWire

Employers in the inner cities, regions and outer suburbs will spend the Christmas break worried if they can keep their businesses afloat and provide job security for workers.

The real-world crash in living standards and business conditions is being fuelled by a prolonged inflation-fuelled, cost-of-living crisis that has driven up the cost of everything.

ASIC insolvency data and JobSeeker figures show that underneath the hood of Australia’s flatlining economy and historically low 3.9 per cent unemployment rate, there is enormous pain for many.

Inflation has been too high for too long, leaving a trail of economic destruction and personal devastation. Mums and dads work multiple jobs to offset reduced hours, and go without to ensure their kids aren’t left behind. The rising cost-burdens on families and businesses have never been this bad.

People are struggling to pay for life necessities and bills, be they car, health and home insurance, rates, electricity, gas, water, body corporate, mortgages, groceries, petrol, school and childcare fees.

This is true “unavoidable spending”.

The hard-earned incomes of Australians are either going into life costs or being funnelled by the ATO into government coffers.

Anthony Albanese and Jim Chalmers must understand the situation has become more than Australian families simply being “under the pump” or “doing it tough”. They must also realise untargeted and record government spending runs counter to reducing inflation faster and giving the Reserve Bank confidence to cut rates.

In Wednesday’s mid-year budget update, Chalmers is expected to reveal deeper deficits and more spending. On the eve of the Mid-Year Economic and Fiscal Outlook release, Chalmers acknowledged “people are doing it tough” but defended Labor’s actions to help, such as energy bill relief and revamped stage three tax cuts.

After more than 2½ years in office, Chalmers still blames the Coalition for leaving behind a mess, without referencing the Covid pandemic. He also links Australia’s economic woes to global factors, including the weak Chinese economy and overseas wars.

Months out from the 2025 election, the rubber is hitting the road for Chalmers and Albanese.

Voters are looking to Labor and the Coalition for hope and leadership.

They want clear plans and ­assurances that the Australian economy will be back on track ASAP.

The worrying surge of businesses plunging into insolvency and higher levels of working-age Australians on jobless welfare payments is hard evidence that cannot be ignored.

Voters, hungry for solutions, political courage and practical reform, are fed up with rhetoric from all sides.

They want Albanese and Peter Dutton to present them with a way out that occurs sooner rather than later. Because if the path doesn’t emerge next year, businesses will continue collapsing and more people will be without jobs (that aren’t in the public service).