National Crisis Needs National Response

A joint media release with
Senator Dean Smith
Shadow Assistant Minister for Competition, Charities and Treasury

Senator the Hon Matt Canavan
Senator for Queensland

18 November 2024

Following a two year inquiry, the Cost of Living Committee has found that Australians' standards of living have collapsed due to Labor’s high inflation and low productivity.

The Committee’s final report, Paying the Price: The Cost of a Crisis on Australians’ Standards of Living makes an additional nine recommendations to the Albanese Government, on top of the 14 that remained unactioned from the Second Interim Report.

In response to the overwhelming evidence that Australia’s inflation crisis is homegrown, the Committee has called for the Albanese Government to show leadership and convene National Cabinet to address excessive government spending that is driving inflation.

In addition, the Committee has found that Australians’ falling standards of living needs an active response from Government. The Report found that Labor’s anti-productivity red tape agenda was contributing to the cost of living crisis, driving up costs for small businesses and prices for consumers.

For that reason, the Committee also recommended the Albanese Government to convene National Cabinet to develop productivity-enhancing reforms for the economy, including establishing a national deregulation agenda.

Chair of the Committee Senator Jane Hume said that two years of evidence has overwhelmingly shown that Australians are worse off under Labor.

“High inflation has eaten away at the standard of living for Australians, and is the driving force of this cost of living crisis.

“Anthony Albanese must call a National Cabinet to address the excessive government spending from all levels of Government, to help address our homegrown inflation crisis.

“Sadly, the Prime Minister and his Labor colleagues have been gutless in their response.

“If Labor was serious about lowering the cost of living and restoring our standards of living, they would show leadership and act on these recommendations.”

Senator Dean Smith, whose Private Senator’s Bill to encourage donations to food charities and slash food waste was endorsed by the report, said Labor needs to focus on people rather than politics.

“A food donation tax incentive is the highest policy priority for food relief charities and the hungry households they support, but despite two and half years of very public advocacy to deliver it, Labor continues to turn a blind eye.

“I call on the Albanese Government to put people first and reverse its decision to oppose this sensible and practical solution, which will help to address record food stress across the country - especially as Christmas approaches.

“Labor’s cost of living crisis has hit charities and not for profits very hard, with many overwhelmed by a combination of skyrocketing demand for services and dramatically increased operating costs.”

Senator Matt Canavan said Labor had abandoned Australians across the country by focussing on their pet projects and keeping cosy relationships, instead of the cost of living crisis.

“For two and a half years we have seen nothing but wrong priorities from Anthony Albanese and his Government.

“Families and small businesses, particularly those in regional and rural Australia, have been forgotten by Labor, and as we heard throughout the Committee it is those communities who are doing it incredibly tough.

“It’s time we saw some action from Labor on the cost of living and I urge the Albanese Government to adopt these recommendations as a matter of priority.”

The Final Report is available online here.