Three things the Albanese government could do right now to make people feel better off
News Source
β’Thu, 22 Oct 2026 14:00:31 GMT
π° What Happened
Australian households feel worse off even though the economy is still growing. Consumer sentiment fell in October to levels usually seen in a recession. That is despite figures showing the economy grew 2% in the year to June, after inflation is taken out.
Economist Nicki Hutley says the anger has clear causes. Energy shocks from wars, higher tariffs, ageing populations, bigger military budgets and worse climate disasters are all pushing prices up. House prices are falling and unemployment is rising.
In her column she names three fixes. Lift the GST to 15% to pay for health and education, tax the super profits of gas exporters, and help low-income households go electric.
π The Backstory
Australia's GST started in 2000 at 10%. The money goes to the states, which spend it on hospitals and schools. The Grattan Institute this week suggested lifting it to 15%, still below the rich-country average of 19.4%.
Gas exporters already pay a petroleum resource rent tax, but critics say the rate is too low. The SuperPower Institute says charging polluters and taxing gas super profits could raise $35bn a year.
Rebates for solar panels and batteries mostly help wealthy homeowners who own roofs and can pay upfront. The NSW Solar for Apartments scheme aims $5m of its $30m budget at poorer postcodes.
π― Why It Matters
These ideas would change what you pay at the shops and what you keep from your pay. They also decide whether your local hospital and school have enough money.
Australian households feel worse off even though the economy is still growing. Consumer sentiment fell in October to levels usually seen in a recession. That is despite figures showing the economy grew 2% in the year to June, after inflation is taken out.
Economist Nicki Hutley says the anger has clear causes. Energy shocks from wars, higher tariffs, ageing populations, bigger military budgets and worse climate disasters are all pushing prices up. House prices are falling and unemployment is rising.
In her column she names three fixes. Lift the GST to 15% to pay for health and education, tax the super profits of gas exporters, and help low-income households go electric.
Australia's GST started in 2000 at 10%. The money goes to the states, which spend it on hospitals and schools. The Grattan Institute this week suggested lifting it to 15%, still below the rich-country average of 19.4%.
Gas exporters already pay a petroleum resource rent tax, but critics say the rate is too low. The SuperPower Institute says charging polluters and taxing gas super profits could raise $35bn a year.
Rebates for solar panels and batteries mostly help wealthy homeowners who own roofs and can pay upfront. The NSW Solar for Apartments scheme aims $5m of its $30m budget at poorer postcodes.
These ideas would change what you pay at the shops and what you keep from your pay. They also decide whether your local hospital and school have enough money.