Cost of living pains to endure until 2030, Coalition claims

Australians will be grappling with cost of living pressures until 2030 unless the Albanese government changes tact, according to the Coalition.

Treasurer Jim Chalmers has been urging optimism as Australia begins 2025, waving goodbye to a year defined by high housing, grocery and energy costs.

But his opposition counterpart Angus Taylor warned on Monday regaining the living standards enjoyed in 2022 was still some time away.

“Under the Albanese Labor government, hardworking Australians are enduring the steepest decline in living standards on record,” Mr Taylor said.

“Not only is this completely unprecedented in our history, it’s also unparalleled anywhere else in the world.”

Pointing to official household forecast incomes and population trends, he said living standards would in June still be 7 per cent behind what they were when Labor entered government in 2022.

It would take until 2030 for things to level out on the current trajectory, according to Mr Taylor.

“No amount of spin or unfounded optimism from the Treasurer will restore the financial losses hardworking households have incurred under Labor,” he said.

“The new year of 2025 offers no relief under this failing government.

“The Treasurer’s own data proves Australia cannot afford another three years of Labor.”

Cost of living has surged in most developed countries following a tumultous start to the decade.

Supply chain issues stemming from the Covid-19 pandemic dealt a heavy blow to the global economy.

Subsequent major geopolitical shake-ups, such as Russia’s invasion of Ukraine and conflict in the Middle East, has inflicted further pain on economies.

A slowdown in China has also painted a grim picture for Australian ore exports.

At home, Australians have been slugged with high interest rates as the Reserve Bank tries to stymie inflation, which has dropped but still has some way to go.

But despite the pressures, the economy has continued to grow, albeit at a meagre pace, while peer countries slipped into recession.