Majority of Aussies back energy, fuel subsidies against cost-of-living crunch, poll says
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Rising living costs, driven by soaring house prices, wage stagnation, and increasing grocery expenses, demand immediate attention.
In response, many Aussies are fervently seeking government aid to ease the strain of elevated energy and fuel bills, especially in light of the RBA rate hike yesterday.
Just before the most recent rate hike was announced, data from a poll showed that many Australians believe offering subsidies for energy and fuel expenses can ease the financial strain of daily living.
The Reserve Bank of Australia (RBA) convened on Tuesday and decided to raise the cash rate target by 25 basis points to 4.35 per cent.
Interest rates have been steady at 4.10 per cent since the RBA Board's meeting in June.
The exclusive poll by The Australian asked the public for their views on government actions to address the rising cost of living.
A significant 84 per cent favoured energy bill subsidies, with 81 per cent supporting fuel price subsidies.
Additionally, 77 per cent suggested cutting government spending to combat inflation, and 73 per cent called for individual tax cuts.
Interestingly, 53 per cent of the 1,220 poll participants believed offering cash assistance to low-income families could be a viable solution.
As more Australians feel the crunch of high prices, Shadow Finance Minister Jane Hume urged the government to take stronger action against inflation during an interview.
‘If you were serious about tackling the cost of living and rising prices, why on earth would you put a tax on truckies and a tax on farmers when you know those taxes are going to immediately be passed on in the form of higher grocery prices?’ she said.
‘Why would you intervene so severely in the gas market that you're turning away new investors when we know that the only way to bring down energy prices, particularly gas prices, is to increase supply?’
The government introduced an energy bill relief plan last year, resulting in rebates for eligible households across the country.
Ms Hume also warned that measures like energy and fuel subsidies are not sustainable, long-term solutions.
‘Well of course putting subsidies, whether it be on fuel prices, whether it be on energy bills, whether it be on child care, all of these things can fuel the inflationary fire rather than temper it. They are band-aides on the bullet hole,’ she explained.
‘We want to see the government tackle inflation at its root cause, which of course is aggregate demand.’
Aggregate demand is the total spending in the economy, which includes consumption, business investment, government spending, and net exports.
‘Private sector demand has almost ground to a halt because of the 11 interest rate rises we’ve had already,’ Ms Hume said.
‘The public sector demand keeps being fuelled by government spending.’
‘That’s why we want to see the government come up with a specific plan to tackle inflation, not just deal with the symptoms, deal with the causes.’
Video source: YouTube/Sky News Australia
Members, besides subsidies, what other solutions can you propose for the government to ease the public's financial strain due to high energy and fuel costs?
Share your ideas in the comments below!
In response, many Aussies are fervently seeking government aid to ease the strain of elevated energy and fuel bills, especially in light of the RBA rate hike yesterday.
Just before the most recent rate hike was announced, data from a poll showed that many Australians believe offering subsidies for energy and fuel expenses can ease the financial strain of daily living.
The Reserve Bank of Australia (RBA) convened on Tuesday and decided to raise the cash rate target by 25 basis points to 4.35 per cent.
Interest rates have been steady at 4.10 per cent since the RBA Board's meeting in June.
The Reserve Bank of Australia convened on Tuesday to discuss the cash rate. Image source: Facebook/Reserve Bank of Australia
The exclusive poll by The Australian asked the public for their views on government actions to address the rising cost of living.
A significant 84 per cent favoured energy bill subsidies, with 81 per cent supporting fuel price subsidies.
Additionally, 77 per cent suggested cutting government spending to combat inflation, and 73 per cent called for individual tax cuts.
Interestingly, 53 per cent of the 1,220 poll participants believed offering cash assistance to low-income families could be a viable solution.
As more Australians feel the crunch of high prices, Shadow Finance Minister Jane Hume urged the government to take stronger action against inflation during an interview.
‘If you were serious about tackling the cost of living and rising prices, why on earth would you put a tax on truckies and a tax on farmers when you know those taxes are going to immediately be passed on in the form of higher grocery prices?’ she said.
‘Why would you intervene so severely in the gas market that you're turning away new investors when we know that the only way to bring down energy prices, particularly gas prices, is to increase supply?’
The government introduced an energy bill relief plan last year, resulting in rebates for eligible households across the country.
Ms Hume also warned that measures like energy and fuel subsidies are not sustainable, long-term solutions.
‘Well of course putting subsidies, whether it be on fuel prices, whether it be on energy bills, whether it be on child care, all of these things can fuel the inflationary fire rather than temper it. They are band-aides on the bullet hole,’ she explained.
‘We want to see the government tackle inflation at its root cause, which of course is aggregate demand.’
Aggregate demand is the total spending in the economy, which includes consumption, business investment, government spending, and net exports.
‘Private sector demand has almost ground to a halt because of the 11 interest rate rises we’ve had already,’ Ms Hume said.
‘The public sector demand keeps being fuelled by government spending.’
‘That’s why we want to see the government come up with a specific plan to tackle inflation, not just deal with the symptoms, deal with the causes.’
Video source: YouTube/Sky News Australia
Share your ideas in the comments below!
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