Jim Chalmers delivers a grim outlook to struggling pensioners
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Considering the progressive surge in the cost of living lately, it’s only right that we are all looking to the future with the hope of seeing a promising outlook. While many are rejoicing at possible wage growth, there are others whose situation has worsened.
Many pensioners are going through the motions every single day, barely able to scrape by. It’s anxiety-inducing and it shouldn’t be happening.
Fiona, who was in the live audience with other pensioners for Treasurer Jim Chalmers' post-budget Q+A appearance on Thursday night, asked if there was anything she could do to help herself overcome her dire financial circumstances, as she struggles with the surging cost of living.
‘With non-discretionary items rising faster than CPI indexation, welfare recipients like myself are meant to be grateful for (the rise to indexation). What essentials should I be cutting from my budget?’
As part of the routine indexation, the Age, Carer and Disability Support Pensioners will receive a $38.90 increase in the fortnightly allowance for single people and $58.80 for each couple.
But Fiona expressed that it was still not enough, saying: 'It’s all falling behind. I’m playing catch up.'
The question left Chalmers stumped, as he explained that the government needed to be careful not to make things worse as they straddled a fine line between making sure the economy is okay and guaranteeing that people can still manage.
'The best thing we can do is try and address inflation. That’s what the budget was about,' he explained.
'But I don’t want to pretend to Fiona or to anyone in Fiona’s position that the budget nine nights ago fixed all of these challenges.'
'I do need to be upfront with all of you about the nature of this challenge that we are confronting right now.'
'And our best contribution to this problem is being restrained in our spending.'
Chalmers also emphasised that the government's first budget was 'simple', but as the cost of essentials continues to outpace the growth of welfare payments, is it really 'bread and butter' for struggling Australian households?
Due to the rising cost of living, many Australians are struggling to get by, and some are even falling into deeper financial crises.
It should also be noted that during the online broadcast, Stan Grant, the Q+A host, noticed that Fiona's question focused more on the difficult decisions she was having to make.
For example, she said that she had to choose between getting her eyes checked or seeing a doctor because her GP no longer offered bulk billing.
This observation prompted him to call on Chalmers for more in-depth advice.
However, Chalmers declined to provide Fiona with a direct response. Instead, he said that he recognised the challenges faced by Fiona and others in her situation.
'The cost of living is going through the roof, and that has a disproportionate impact on the most vulnerable amongst us, and we understand that,' he added.
'My responsibility to you, Fiona, and to the whole country, is to try and take the right economic decisions, to make sure we are not making inflation worse.'
According to Chalmers, this year's inflation is expected to continue to worsen before peaking.
'Nobody has a perfect crystal ball,' he remarked.
'But the expectations of the Reserve Bank and the Treasury is that this inflation challenge will get a bit worse until the end of the year.'
'The main thing I can do here – the worst thing that could happen for Fiona and for people around Australia – is if we let this inflation get out of control… That’s what I’m trying to avoid.'
In a later statement, Chalmers claimed that he planned to present a 'costed plan with detail' to address the rise in energy prices before Christmas.
He said that the government was thinking about using price controls, subsidies, and taxes but that it would prefer to use regulation.
He said: 'We have a little more work to do on this… But I want to reassure people that we know that electricity price rises are… Intensifying.'
Pensions are a crucial, staple part of Australians' finances here in the country. Many Australians rely, at least somewhat, on their pension payments to get by and to keep their heads above water financially.
What are your thoughts on this? Do you think the government should implement price caps and subsidies to ease the burden of soaring utility prices? Let us know your thoughts in the comments below!
Many pensioners are going through the motions every single day, barely able to scrape by. It’s anxiety-inducing and it shouldn’t be happening.
Fiona, who was in the live audience with other pensioners for Treasurer Jim Chalmers' post-budget Q+A appearance on Thursday night, asked if there was anything she could do to help herself overcome her dire financial circumstances, as she struggles with the surging cost of living.
‘With non-discretionary items rising faster than CPI indexation, welfare recipients like myself are meant to be grateful for (the rise to indexation). What essentials should I be cutting from my budget?’
As part of the routine indexation, the Age, Carer and Disability Support Pensioners will receive a $38.90 increase in the fortnightly allowance for single people and $58.80 for each couple.
But Fiona expressed that it was still not enough, saying: 'It’s all falling behind. I’m playing catch up.'
The question left Chalmers stumped, as he explained that the government needed to be careful not to make things worse as they straddled a fine line between making sure the economy is okay and guaranteeing that people can still manage.
'The best thing we can do is try and address inflation. That’s what the budget was about,' he explained.
'But I don’t want to pretend to Fiona or to anyone in Fiona’s position that the budget nine nights ago fixed all of these challenges.'
'I do need to be upfront with all of you about the nature of this challenge that we are confronting right now.'
'And our best contribution to this problem is being restrained in our spending.'
Chalmers also emphasised that the government's first budget was 'simple', but as the cost of essentials continues to outpace the growth of welfare payments, is it really 'bread and butter' for struggling Australian households?
Due to the rising cost of living, many Australians are struggling to get by, and some are even falling into deeper financial crises.
It should also be noted that during the online broadcast, Stan Grant, the Q+A host, noticed that Fiona's question focused more on the difficult decisions she was having to make.
For example, she said that she had to choose between getting her eyes checked or seeing a doctor because her GP no longer offered bulk billing.
This observation prompted him to call on Chalmers for more in-depth advice.
However, Chalmers declined to provide Fiona with a direct response. Instead, he said that he recognised the challenges faced by Fiona and others in her situation.
'The cost of living is going through the roof, and that has a disproportionate impact on the most vulnerable amongst us, and we understand that,' he added.
'My responsibility to you, Fiona, and to the whole country, is to try and take the right economic decisions, to make sure we are not making inflation worse.'
According to Chalmers, this year's inflation is expected to continue to worsen before peaking.
'Nobody has a perfect crystal ball,' he remarked.
'But the expectations of the Reserve Bank and the Treasury is that this inflation challenge will get a bit worse until the end of the year.'
'The main thing I can do here – the worst thing that could happen for Fiona and for people around Australia – is if we let this inflation get out of control… That’s what I’m trying to avoid.'
In a later statement, Chalmers claimed that he planned to present a 'costed plan with detail' to address the rise in energy prices before Christmas.
He said that the government was thinking about using price controls, subsidies, and taxes but that it would prefer to use regulation.
He said: 'We have a little more work to do on this… But I want to reassure people that we know that electricity price rises are… Intensifying.'
Key Takeaways
- Age pensioners are struggling to keep up with the cost of living, and are having to make tough choices about which essentials to go without.
- Jim Chalmers is struggling to offer hope to pensioners, as he warns inflation is just going to get worse and the government has to straddle a fine line or risk negatively impacting the situation.
- He says the best thing the government can do to try and address inflation is to be restrained in their spending.
Pensions are a crucial, staple part of Australians' finances here in the country. Many Australians rely, at least somewhat, on their pension payments to get by and to keep their heads above water financially.
What are your thoughts on this? Do you think the government should implement price caps and subsidies to ease the burden of soaring utility prices? Let us know your thoughts in the comments below!