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Warning against complacency: government relief fails to match the severity of the crisis

Published July 25, 2026 at 9:02 PM UTC

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Despite the government's claims of targeted support, the cost-of-living crisis continues to crush Australian families, and the relief measures are falling woefully short. The energy rebate of up to $500 covers only a fraction of the average annual electricity bill, which has climbed by more than 30% in some states. The increased rent assistance, while welcome, still leaves recipients in large cities paying well above the maximum eligible rent. For a single parent on JobSeeker, the combined support barely touches the rising cost of food, housing, and transport. Meanwhile, the government has continued to allow the expiry of the pandemic-era supplement for income support, leaving the unemployed and underemployed worse off than before. Inflation may be slowing, but price levels remain high, and many families have exhausted their savings. There is a 'lag effect' from interest rate rises that will continue to push mortgage arrears higher, and rental stress is at record levels. The government's obsession with budget surpluses has prevented it from implementing bolder measures like a significant boost to JobSeeker or a temporary freeze on rent increases. The Reserve Bank's single-minded fight against inflation has inflicted unnecessary pain on households without addressing supply-side issues like housing shortages and energy costs. The current path risks entrenching poverty and widening inequality, with the most vulnerable Australians falling further behind while the government congratulates itself on its fiscal prudence.