Written by Jacob Vadakkedathu, Canberra Liberals Senate candidate.
The latest Australian Bureau of Statistics (ABS) figures show a stark and troubling picture of Australia’s economy. With just 0.2 per cent growth in the June quarter and a meagre 1 per cent growth over the last year, it is clear that the country is grappling with one of the slowest growth periods in decades. In fact, excluding the COVID-19 pandemic, annual economic growth has not been this low since the 1991-92 recession. This data is more than just a blip – it reflects deeper, systemic issues with the way our economy is being managed.
Perhaps the most alarming aspect of the recent figures is that Australia is now facing the sixth consecutive quarter of a household recession, with negative GDP per capita growth. For 18 months, ordinary Australians have seen their personal economic situations deteriorate, as wages struggle to keep up with the rising costs of living. This represents the longest period of negative per capita growth in 50 years, a historic low that underscores the serious economic challenges facing households across the country.
Under the current Labor government, the private sector has also gone backwards, compounding the struggles of individual households. Businesses, the backbone of our economy, are suffering under the weight of reckless policies and misplaced priorities. This government inherited an economy with low unemployment, robust growth, and recovering government finances, yet in just a few short years, they have squandered this legacy. Now, with private businesses faltering and growth stagnating, the government’s failures are coming home to roost.
A key indicator of this failure is the drop in real disposable incomes. Since Labor came to power, real disposable incomes have fallen by almost 9 per cent. This collapse in household living standards is unprecedented. It means that Australians now have significantly less purchasing power than they did two years ago, a situation that is made even worse by rising personal income taxes, which are up by 25.3 per cent. In short, Australians are paying more to the government while getting less in return.
Meanwhile, household savings have plummeted by 10.2 percentage points, and mortgage payments have nearly tripled. For homeowners, the situation is especially dire as rising interest rates have put unbearable pressure on family budgets. In contrast, comparable economies around the world are seeing inflation come down, interest rates stabilise, and growth pick up. But here in Australia, we are not seeing the same improvement, which only adds to the sense of frustration and disillusionment.
The government has failed to tackle inflation effectively, and their inability to manage the broader economy is apparent. While other nations are seeing a recovery, Australia is languishing under the weight of poor policy decisions. This is a government that has spent its term fighting everything but inflation, and now, as these ABS figures show, the consequences of that failure are clear.
The economy is in crisis. Australians are poorer, productivity has collapsed by 6.3 per cent, and businesses are struggling to stay afloat. It is time for the government to wake up and take responsibility for the economic mess they have created. Otherwise, the damage to the country’s long-term prosperity will be even more severe.
