Aussies feel worse off about cost of living as election race kicks off

New data has revealed how almost half of all Australians feel now compared to when Anthony Albanese took office, as he and Peter Dutton argue they can both fix the country.

Exclusive: Almost half of all Australians feel they are worse off than they were three years ago before Anthony Albanese took office, as the Prime Minister and Opposition leader Peter Dutton both cast the federal election as a “choice” between who will ensure households are better in the future.

About 45 per cent of people say they have gone backwards under the Albanese Government, compared to 26 per cent who feel “better off” and 30 per cent who say they are “about the same”, according to analysis done by News Corp’s Growth Intelligence Centre as part of the Lighthouse Consumer Sentiment Tracker.

The survey of more than 5,000 Australian adults conducted in January and February found changes to the cost of living, including groceries, housing and bills, was the reason 91 per cent of those who said they were worse off felt that way.

A view of a supermarket in Sydney as most households are under pressure with the impact of the high cost of living and rising food costs. Picture: Newswire/ Gaye Gerard

The affordability and availability of housing was the second highest factor among these voters.

A rise in crime and concerns about public safety was a consideration for about 41 per cent of the people who said they were worse off, while 34 per cent said it was due to changes in the economy or business environment, and 35 per cent pointed to immigration levels and policies.

When asked how their financial situation had changed over the past 12 months, 37 per cent of people said they were worse off, which was down slightly, and 24 per cent said better off, which was up three points.

More than 54 per cent of people said they were struggling to save, of which a third are managing but don’t have much left over and seven per cent are “falling behind on essential costs”.

Some Aussies have blamed the Reserve Bank of Australia for rising costs. Here, Governor Michele Bullock is seen in Canberra.. Picture: NewsWire / Martin Ollman

Labor took the blame for cost of living pressures among 34 per cent of Australians, while 11 per cent pointed the finger at the major retailers and supermarkets, and nine per cent at the Reserve Bank of Australia. About 83 per cent of Australians said they had taken action to reduce costs in the last six months, with the most common discretionary spending avoided including eating out, takeaway and entertainment, as well as personal care and buying less clothing.Among Australians who say they feel better off after the last three years, changes in government policies or leadership was a factor for about a third of people, as was “changes in my job or income”.

Prime Minister Anthony Albanese in a shop in Sydney, where cost of living pressures continue to hit households and small business. Picture: NewsWire / Damian Shaw

Changes in personal life, including health, was also a factor for 22 per cent of Australians who said they felt better off under Labor.

These issues featured prominently in Mr Albanese’s election pitch on Friday after he called the poll for May 3, with the PM assuring voters his government will support them to “keep building” workers’ wages, their child’s education and their Medicare card.

“Only Labor has a plan to make you better off over the next three years,” he said.

Mr Dutton has also shaped his message around which party will provide a better future for Australians, by pointing back at the last three years under Labor.

“The question that Australians need to ask is: are you better off today, and is our country better off today, than three years ago?” he said.

“Right now, Australia is going backwards.”

Mr Dutton on Friday promised his plan to carve out a domestic gas reserve for the east coast would deliver cheaper electricity prices almost immediately.

“Starting from the end of this calendar year, we have the ability to bring a lot of gas into the system so that we can see that downward pressure – not just on gas but on electricity prices,” he said.

The Leader of the Opposition Peter Dutton with local shop owners in Mitchelton in Brisbane. He argues the Coalition will bring prices down. Picture: NewsWire/Tertius Pickard

He said this was important because “energy is the economy”.

“If energy is unaffordable, and if it’s unreliable, then it’s disaster for the economy,” he said.

The survey of Australians found women were more likely than men to say they felt worse off, with 47 per cent rating their situation down compared to 43 per cent.

It was still dark when Mr Albanese visited Government House in Canberra early on Friday to kickstart the election campaign, effectively wiping Mr Dutton’s budget in reply speech from the previous evening out of the news cycle.

The Opposition leader continued to promote his centrepiece announcement, a domestic reserve on Australian gas to secure an extra 10 to 20 per cent of supply for east coast states.

Mr Dutton also pledged to be a “prime minister for housing affordability”.

Prime Minister Anthony Albanese gestures as he speaks during a press conference at Parliament House in Canberra. Picture: AFP

Asked if he was ready for the campaign, Mr Albanese declared he was “born ready“.

The PM said Labor had governed through “turbulent seas” by providing cost of living relief.

“Australians today would be $7,200 worse off on average,” he said.

Mr Albanese said the “biggest risk” to Australia’s future was “going back to the failures of the past”,

“The tax increases and cuts to services that Peter Dutton and the Liberal Party want to lock in,” he said.

The opposition has argued temporary cash splashes over the last three years have been inflationary and delayed interest rate cuts, while Mr Dutton reiterated on Friday his plan to halve the fuel excise rather than support Labor’s 2026 tax cuts.

Meanwhile, the Greens announced they would hold a rally in Brisbane as they attempt to sandbag the inner-city seats of the Queensland capital they swept up in 2022.

In a boost for Labor, the Greens will spearhead their campaign on attacking Mr Dutton and keeping the Liberals from regaining the electorates of Brisbane, Griffith and Ryan.

“Keeping Brisbane Green keeps Peter Dutton out,” Greens leader Adam Bandt said.

“The Greens will keep Dutton out and get Labor to act on the cost of living, housing and climate crises.”

Originally published as Aussies feel worse off about cost of living as election race kicks off