Shadow Assistant Minister for Competition, Charities and Treasury – Opinion Piece – The West Australian – PM out of touch and time
SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA OPINION PIECE – THE WEST AUSTRALIAN 9 December 2024 PM OUT OF TOUCH AND TIME When Anthony Albanese launched his 2022 election campaign here in Perth, he asked Australians to “vote for hope” and trust that his government would deliver us a brighter future. 30 months later, he returned amid a cost-of-living crisis of Labor’s own making that has hit WA harder than anywhere in the nation. The Parliamentary Library recently completed an analysis of data from the Australian Bureau of Statistics for my office. It paints the starkest picture yet of the rising cost of living in Western Australia, revealing the extent to which households and businesses are struggling to keep their heads above water. Over the past two years, Perth has experienced price increases on more than 40 everyday goods and services—many of them essential—and at rates exceeding those seen across the rest of the country. Housing costs have surged by 35.1 percent, compared to 24.2 percent nationally, while rents have climbed an alarming 36.9 percent. With construction costs soaring by nearly 60 percent since 2022, home ownership has become little more than a dream for many. And it’s not just the financial toll. The psychological strain of navigating such volatile conditions can be overwhelming, with people trapped by the relentless cycle of rising costs. There have been steep hikes in insurance premiums, for example, now up by almost 50 percent compared to 38.9 percent nationally. The impact on young families is particularly acute. Childcare costs have risen nearly 10 percent—more than three times the national average—leaving some with no choice but to cut back or pull their children out of daycare entirely to make ends meet. It doesn’t end there. Preschool and primary school fees in Perth have jumped by 11.9 percent, compared to 7.6 percent across the country. Health costs are climbing too. Since Labor took power, medical products have risen by 3.9 percent, while pharmaceutical products have increased by 4.2 percent. The reality is undeniable: Australians are doing it tough, but Western Australians are doing it even tougher. With Anthony Albanese back here in an attempt to champion his government’s record, locals should be demanding to know why his promises of economic security have failed to materialise. After all, the Prime Minister’s 2022 campaign was built on bold commitments. He promised an economy where people could comfortably meet their needs, where housing would be within reach, and where no Australian would be left behind. Instead, households have seen their budgets decimated by relentless price hikes and stagnating wages. That ABS data I referred to earlier reveals that Perth’s Consumer Price Index (CPI) has risen by 19.5 percent over the last two years, far outpacing WA’s modest full-time wage growth. Basic staples like bread and milk—whose prices have jumped more than 25 percent—are emblematic of the crisis. These increases outstrip wage growth by nearly double, leaving residents with a grim realisation of how disconnected Labor’s rhetoric is from reality. It’s no surprise people have cut back on non-essentials. Subscription services are canceled, celebrations scaled back, and holidays are postponed. But, for others, the sacrifices are far more significant. These Western Australians are skipping meals, delaying vital medical treatments and not paying their rent and other major bills with significant implications for their futures. While some of these challenges can be attributed to global factors—and this was the case for a period of time—the real blame now lies with Canberra. Labor’s unchecked spending has fueled domestic inflation, forcing the Reserve Bank to keep interest rates high because of the Albanese Government’s mismanagement. Core inflation now sits at 3.5 percent, higher than in most advanced economies. Services inflation, a key concern for the Reserve Bank, is running at 4.8 percent, more than five times the rate of imported inflation. These are not just economic metrics—they’re playing out in the daily struggles of people and businesses across WA. They expose a government that is failing to respond to its citizens’ most pressing needs. Small businesses in Western Australia face their own battles, because, as well as wrapping them in red and green tape, Labor has also created a cost of doing business crisis. Fuel costs, essential for transportation and logistics, have climbed 37.8 percent, eating into already slim profit margins. Farmers have seen fertiliser and feed prices rise significantly, pushing some to scale back operations. As WA contributes significantly to the nation’s agricultural output, the long-term implications of this must not be understated. For farmers, for small businesses, these increases are not just a matter of tightening budgets—record insolvency figures confirm many cannot survive under these conditions. The Prime Minister should be asking himself if he has delivered the “better future” he promised. Looking at the data, looking at the experiences of households and businesses, the answer is clearly no. The photo opportunities and spin of Anthony Albanese’s visit will have demonstrated for many in WA how out of touch he and his government have become. They are also out of time. The next election is fast approaching and, even if it wanted to, it is doubtful Labor could now make a meaningful change to the mess it has created. Western Australians deserve a government that follows through on its commitments, that really does improve lives and futures. And only the Coalition can deliver that.