Treasurer Jim Chalmers has made a controversial decision to end the government’s $75 per quarter electricity subsidy, despite overwhelming public support across political lines for maintaining this cost-of-living relief. The decision comes just ahead of the mid-year budget update, where the government confirmed its stance, citing an additional $2 billion in public spending over the next two months if the subsidy were to continue.
An exclusive Resolve Political Monitor survey reveals that the rising cost of living, exacerbated by increasing energy bills, is a significant concern for many Australians. The poll indicates that 65% of respondents believe the subsidy should be extended, with little difference in opinion between government (69%) and Coalition (68%) supporters.
Public Sentiment and Political Implications
Of the 1,800 people surveyed, only 19% agreed with the government’s decision to end the subsidy. This number drops to 17% among Labor voters and 12% among Coalition voters. Notably, uncommitted voters and those in marginal seats showed the least support for the government’s action, with only 20% backing the decision.
Energy prices remain a pivotal issue in Australian politics. Opposition Leader Sussan Ley’s focus on affordability over greenhouse gas emissions appears to resonate with the electorate. According to the poll, 59% of respondents, including 71% of Coalition supporters, prioritize lowering energy prices over reducing emissions. Even among Labor voters, 55% favor price reduction.
Only 48% of Greens voters prioritize emissions reduction over lower power bills, while a mere 8% of One Nation voters support emissions cuts compared to 79% who advocate for cheaper electricity.
Housing Affordability: A Parallel Concern
While energy costs dominate the current discourse, housing affordability remains a pressing issue. The government’s 5% deposit scheme for first-time home buyers, which insures small deposits with federal taxpayer backing, has garnered majority support, despite criticism from economists and the Coalition regarding potential upward pressure on property prices.
Resolve Political Monitor data shows that 51% of respondents support the scheme, with the strongest backing from Labor voters at 62%. Half of the Coalition voters also endorse the program. Among middle-income (53%) and higher-income (58%) voters, there is majority support, with nearly half of low-income voters (49%) and those in marginal seats (48%) also in favor.
Future Outlook and Policy Considerations
As housing remains a substantial issue in parliament, two Senate inquiries—initiated by the Greens—are set to report on tax arrangements and the impact of high property prices on intergenerational equity in the first half of next year. Greens leader Larissa Waters has called on Treasurer Chalmers to use the upcoming budget update to reform property tax concessions, aiming to assist young Australians in entering the housing market.
“The best gift for any renter this Christmas is a fix to the utterly cooked housing market. Millions of people have given up on the prospect of ever owning their own home,” Waters stated.
The decision to end the energy subsidy, coupled with ongoing debates over housing affordability, underscores the complex economic challenges facing Australian policymakers. As the government navigates these issues, voter sentiment will likely play a crucial role in shaping future policy directions.
