Treasurer Jim Chalmers is being urged to take action and address the pressing cost of living crisis by cutting immigration and fuel excise. With record immigration levels contributing to a surge in capital city rents and house prices, there is a growing concern about the affordability of housing. Previous Labor governments have successfully implemented measures to reduce immigration during similar crises in the past, and it is being suggested that a similar approach may be effective now.
The impact of rapid population growth on housing affordability has been particularly felt in cities like Sydney, Brisbane, and Perth, where house prices have surged by double-digit figures. This has created significant challenges for young people trying to enter the real estate market. Moreover, inflation is rising, and interest rates have been increased, leading to higher mortgage repayments.
Despite these issues, Treasurer Jim Chalmers has stated that the government does not control or set targets for long-term and permanent arrivals, including skilled migrants and international students. However, record-high immigration levels are having a clear impact on housing prices and rents, leaving many Australians struggling to find affordable accommodation.
To alleviate the cost burden on individuals and families, it is suggested that Treasurer Jim Chalmers consider implementing measures taken by previous Labor governments. These measures included reducing immigration during cost of living crises to put a lid on house price rises and rents. Additionally, cutting fuel excise, as previously done by the Liberal government, would provide Australians battling high rents and mortgage repayments with more disposable income.
In conclusion, the current cost of living crisis demands immediate action. Implementing targeted policies such as reducing immigration and temporarily cutting fuel excise could help alleviate the pressure on housing affordability and provide relief to Australians grappling with surging costs. It is essential for Treasurer Jim Chalmers to consider these measures to ensure the well-being and financial security of all Australians.