The Australian government has decided to end the quarterly electricity subsidy of $75 despite widespread public support for its continuation. This decision, announced by Treasurer Jim Chalmers, comes at a time when many voters are struggling with rising living costs, particularly the burden of increasing energy bills. An exclusive poll conducted by the Resolve Political Monitor indicates that a significant majority of Australians, regardless of political affiliation, believe the government should extend this cost-of-living relief.
According to the survey, 65 per cent of respondents support the continuation of the electricity subsidy, with only 19 per cent advocating for its termination. Support for the subsidy spans across party lines, with 69 per cent of Labor supporters and 68 per cent of Coalition voters in favor of extending the financial aid. The findings illustrate the widespread concern regarding energy prices, which remain a pressing issue for households across the country.
Government’s Financial Considerations
Despite the public backing for the subsidy, the government opted to discontinue it, citing concerns over fiscal responsibility. The subsidy would have potentially added at least $2 billion to public spending over the next two months. Previous subsidies have effectively kept power prices lower over the past two years, but they have also complicated the ability of the Reserve Bank of Australia (RBA) and Treasury to accurately gauge inflation rates. The RBA is now contemplating an interest rate increase as early as February.
The poll further revealed that energy affordability is becoming a pivotal issue. Approximately 59 per cent of participants, including 71 per cent of Coalition supporters, believe energy policy should prioritize lowering costs over reducing greenhouse gas emissions. Even among Labor voters, 55 per cent support the notion of prioritizing price reductions. Only voters from the Greens party showed more inclination towards emissions reduction, with 48 per cent favoring this approach.
Support for Housing Initiatives
Alongside concerns over energy prices, voters also expressed strong support for initiatives aimed at assisting young Australians in entering the housing market. The government’s 5 per cent deposit scheme, which allows first-time home buyers to secure loans with smaller deposits, has received backing from a majority of respondents. The poll indicated that 51 per cent of those surveyed support the scheme, with 62 per cent of Labor voters and 50 per cent of Coalition voters in agreement.
Despite criticism from economists and some political factions regarding the potential impact of this scheme on property prices, it remains popular among the electorate. The issue of housing affordability is expected to remain a significant topic in parliamentary discussions, particularly as two Senate inquiries into the tax arrangements for the sector are set to report in the first half of next year.
Larissa Waters, leader of the Greens, has called on the government to utilize the upcoming mid-year budget update to reform property tax concessions. She emphasized the need for solutions to alleviate the struggles faced by renters and first-time buyers in what she described as an “utterly cooked housing market.”
The findings from the Resolve Political Monitor highlight the urgency with which voters are seeking relief from rising energy costs and housing challenges. As the government navigates these pressing issues, the demand for continued support in these areas is clear, indicating that public sentiment may influence future policy decisions.
