2 February 2024

Canberra Liberals unveil $65 million promise to tackle cost-of-living pressures

| Claire Fenwicke
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Passenger waiting at bus stop.

The Canberra Liberals policy includes free transport for students, seniors and concession card holders. Photo: Michelle Kroll.

Free public transport for seniors and students, vehicle registration rebates and school vouchers.

These are the promises contained in a $65 million cost-of-living package to be announced by the Canberra Liberals today (31 January).

Leader Elizabeth Lee said the package aimed to provide relief for Canberrans during the “unprecedented” cost-of-living crisis.

“We know through ABS data and evidence given at recent Estimates hearings from community groups such as ACTCOSS and charity organisations there is a significant increase in people accessing their services,” she said.

“These measures we have announced today are broad and designed to provide much-needed cost-of-living relief to many Canberrans who have been continually ignored by the Labor-Greens government.”

The plan, which can only come into effect if the Canberra Liberals win the election, includes:

  • $150 voucher for school-related expenses for each school-enrolled child, preschool to year 12
  • $100 voucher for sport registration and extracurricular activities for each school-enrolled child, preschool to year 12
  • $100 rebate off the registration for each ACT-registered passenger vehicle
  • $100 rebate off the registration for each ACT-registered caravan and camper trailer
  • $50 rebate off the cost of electricity bills for every Canberra household
  • Free public transport for all students, seniors and concession card holders.

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Under the policy, it’s been calculated that a family with two school-aged children and two registered cars will be at least $750 better off.

That increases to at least $1000 for families with three school-aged children.

Ms Lee said this announcement was about providing “real and practical relief” for Canberrans on top of existing concession measures.

“The Canberra Liberals have been listening to the many Canberrans who have been raising their concerns about cost-of-living pressures for some time now but have been continually ignored by the Labor-Greens government,” she said.

“Canberrans have been taxed to the bone by Andrew Barr and their hard-earned money has been wasted on dodgy contracts and abandoned HR programs, [so] all Canberrans deserve some of that money going back into their pocket’s when they need it the most.

“Whilst this policy is squarely aimed at providing cost-of-living relief to Canberrans doing it tough now, I look forward to announcing a number of other initiatives in the lead up to the election that will assist Canberrans with the current cost-of-living crisis.”

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It comes off the back of Canberra being ranked as having the highest cost-of-living expenses in the country.

Global cost-of-living database NUMBEO also has the ACT sitting at 21st in the world.

NUMBEO, the world’s largest cost of living database has confirmed Canberra has the highest current cost of living in Australia with the ACT also sitting at 21st in the world on the current cost of living index.

It’s calculated a family of four has estimated monthly costs of $7418.70 (excluding rent), and a single person’s estimated monthly costs are $2088 (without rent).

Ms Lee said this index came as no surprise.

“Canberrans continue to pay some of the highest rents in the country and are also slugged more than other states and territories when it comes to car registration, sporting registration, and we know how much rates and government charges have increased under Andrew Barr,” she said.

“Add to this the significant increases in interest rates, groceries, petrol and utilities, and it is little wonder so many are struggling with the cost of living.”

This Canberra Liberals policy is its second announcement in the lead-up to the October election, on top of its $100 million ‘Putting Your Suburb First’ policy.

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devils_advocate2:03 pm 02 Feb 24

The biggest bill that most households have to pay is housing, whether that be rent or mortgage.

The biggest single thing any state/territory government could do is to improve housing affordability by reducing the barriers to new supply.

The real barriers – land availability, regulatory red tape (no, don’t water down the planning laws – just administer them quickly and fairly) and remove the ridiculous LVC disincentives to infill redevelopment (which also improves the quality of the housing/rental stock, BTW)

All these little debates will do basically nothing to shift the dial on whether the ACT is an affordable place to live.

This must be the latest joke from the Canberra Liberals. Elizabeth Lee, in her usual theatrical, rehearsed and clipped tone telling us that her party has a social conscience and actually cares about those doing it tough.

This supposedly new reminted Canberra Liberal party under Elizabeth Lee is the same tired and divided party of far-right neocons that voters have become accustomed to. Considered a joke amongst their state and federal colleagues, they are recognised as the most conservative division of the party in the country and have now been in opposition in the ACT for over two decades.

This is the same tired opposition that whinges and moans and has voted against all of the government’s budgets and policies aimed at helping those in our society most in need. This is the same tired opposition that undermined and mocked Labor when the party launched its successful pilot program for free breakfasts across five Canberra public schools at the last election. This is the same tired Liberal party who encouraged their federal colleagues to use their powers to interfere and override the ACT’s drug law reforms, same sex marriage laws and the Calvary Hospital acquisition. These are the same tired Liberals who used the party’s platform to run a highly divisive and hostile No campaign for the Voice to Parliament despite Canberra voters’ overwhelming support. This is the same tired opposition that used the Assembly to undermine and vote against pharmaceutical reforms and laws that would boost bulk billing in the ACT.

I could go on…

Remember folks, whatever the Canberra Liberals give with one hand they will be taking with the other. These miserable wreckers deserve to remain in opposition and they will!!

devils_advocate11:42 am 02 Feb 24

Always hilarious to hear the commentary on the so-called “progressive tax system” from people who pay little to no net tax.

Completely unaware of the additional levies, superannuation contribution charges and withdrawal of specific tax breaks that only apply below certain income levels, which directly undermine the fairness of the progressive tax scales.

And then add to that the progressive withdrawal of benefits, often on hard thresholds and at punitive rates , of benefits that low and middle income earners receive.

Then they have the audacity to lecture others for supposedly not understanding the “progressive tax system”

Would be hilarious if it didn’t have such huge implications for national productivity

@devils_advocate
Oh poor you. You are obviously one of the most over taxed workers in the country.

Have you ever stop to think, that if people actually paid tax according to their means (i.e. their real not declared income), rather than trying to avoid their obligations through conveniently named ‘tax minimilisation’ schemes, then perhaps the need for levies – such as the Medicare levy, would not be so great?

That’s a rhetorical question, by the way. As the widely respected former US Supreme Court justice, Oliver Wendell Holmes, once said: ‘Taxes are the price we pay for civilized (sic) society.’ The issue is too many individuals, like you, want that civilisation at a discount.

Productivity implications? Are you seriously suggesting that people will deliberately reduce their working hours (and income) to avoid tax? Especially, as most people at the highest end of the tax scale don’t get paid for the additional hours they put in anyway.

pink little birdie9:57 am 02 Feb 24

Ensuring all schools have a full complement of teachers would save more than this.
My school doesn’t offer a second language which they are meant to (due to the teacher shortage) so $100 towards that is only 2.5 weeks (38/per hour per session). So i have the choice to have my children be significantly behind in high school or pay for private lessons.

Realistically most kids extra curriculars start at about $20 a session for sports and music lessons are $40.
The only activity that $100 comes close to covering a term of is preschool sport and that is 1 30 min a session.
It’s not close for any of my school aged sons activities.

Ken the Third7:55 am 02 Feb 24

Vouchers for school related expenses and extra curricular sound good. Parents do one of the most economically productive things possible (raising more human resources) for little benefit. It sucks that any kid would miss out on sport etc because of cost of living, and encourages parents to sign them up. However it seems like a nightmare to administrate. How do you distribute it? How do you make sure it’s being spent on what it’s supposed to? Can you do anything with am excess in the voucher value? Do organisations need to sign up to be eligible to accept? Probably end up spending more on beurocrats to handle the thing then the vouchers themselves. Where’s the detail?

It’s managed to work pretty well in NSW for the last five or so years.

Let’s see what I would get.
$100 rebate off the registration for each ACT-registered passenger vehicle
$50 rebate off the cost of electricity bills for every Canberra household. Maybe, maybe not. I just got an energy efficient fridge to replace my ancient (inherited) one, so not sure what my power bill will be next time. My power bill is usually under $100.
Bus travel is already free off peak for seniors and free for over 70s.

Sorry, $100 (maybe $150) is not a big enough bribe. I would rather this money be spent on needed things.

@maya123
Let’s see what I would get.

$150 school rebate x 3 kids
$100 voucher for sport x 3 kids
$100 rebate off car rego x 2 cars
$50 off electricity bill

$1000 better off and we are very much a middle income family who is doing it tough with the rising interest rates and cost of groceries, petrol etc. With all the rates I pay for what seems little in return this will be a big help and is more than the current mob are doing when it comes to cost of living.

Is this the best they can do after 2 decades in opposition? If so, it will soon be 3 decades.

GrumpyGrandpa5:09 pm 31 Jan 24

The Canberra Libs can do better, with the PT promises.

The free PT for students, seniors and concession card holders, is a bit of a nothing iniative;

Seniors already get free PT Off-peak and all-weekends, as do concession card holders. People just need to have a positive balance on their MyWay cards and swipe them, when boarding and and existing.
When travelling during peak, concessional fare apply.

Seniors 70 and over get free PT at any time.

School kids are currently supposed to pay student concession fares;

But anyone who has been on a bus in recent memory can confirm that payment of fares is optional. Concessional card holders and students already ride for free; they just scam free rides!

Rather than offering free rides (to people who don’t pay anyway), the Canberra Libs should just fix the buses; return the Expresso services and reinstate weekend bus services.
The Government’s 2-hourly services through the suburbs is pathetic.

@grumpyGrandpa What makes you think they won’t fix the bus system? From what I have read and listened to today this sounds like a cost of living policy not a transport policy. As a middle income earner with 3 kids and 2 cars this is much welcomed relief and will be a big help for us. Under labor and the greens we always miss out on the benefits.

GrumpyGrandpa11:10 am 01 Feb 24

G’day Tom,
Sure, the announcement was a “cost of living” announcement and not an announcement for the Canberra Libs “Transport Policy”.

I just felt that there wasn’t a lot of new initiatives, but hopefully the full PT announcement will be different.

The Opposition certainly has set itself apart from the Government, on public transport and I hope their policy reflects that.

I’m not a big fan of LR.

We have one car and it’s 25 year old, so public transport is pretty important to us and I expect, a lot of people.

Kindest Regards

Grumpy.

@grumpy yep i hear you, but for someone like me with kids in school etc all these measures would be very helpful for our family. I totally agree with you regarding public transport. I don’t catch it personally and think the LR is a gross waste of money but I really hope for the sake of our city they prioritise and fix the bus system for people that do use it as the current mob have totally dropped the ball on public transport

Canberrans have the highest average disposable income in Australia and while averages can distort there is no qualification of these rebates regarding personal income. If means tested, then a blanket rebate could be adjusted so that those on $200K plus a year, driving Audis and sending their kids to expensive private schools who don’t need these rebates could be omitted from the scheme and bigger rebates could go to low income earners with kids at the local government school and a Honda jazz in the garage. Most seniors and concession card holders already get free transport out of peak times and free anytime if 70 or over.

So yet again, anyone in the higher bracket gets nothing but is expected to cover the lower bracket

@davo1
So yet again you display your lack of understanding of a progressive tax system. No-one in Australia is solely in the highest tax bracket – everyone “moves through” each bracket and their marginal rate increases accordingly. So even those executives who receive multi-million dollar salaries will realise a tax saving when the stage 3 rates cut in – just not as much as originally legislated … and you have a problem with that?

Yeah i under stand doesn’t make it fair

davo1, What I don’t understand is you. How is it unfair?

@davo1
Not fair? What’s not fair about the fact that around 85% of taxpayers will be better off under Labor’s plan than the stage-three tax cuts legislated by the Coalition?

Justsaying,
I think the definition of “fair” in these discussions is a completely subjective one.

The fact that more are better or worse off, doesn’t make it necessarily fair or unfair. Particularly when higher income people are already paying significantly more in tax in the first place.

@chewy14
You are totally correct about the assessment of “fairness” being subjective.

The progressive nature of our PAYG income tax system means those on higher incomes will pay more, possibly significantly more, than those on lesser incomes – and I personally think that’s “fair”.

As someone who, for many years in my later working life, was fortunate enough to earn an income, at a level where some portion fell into the highest bracket – I am (and was) fine with that. For me, it meant the more income tax I paid, the higher my disposable income – and I was still far better off than those who didn’t earn enough to have a marginal rate in the highest bracket.

While it would be nice to live in an income-tax-free economy, the reality is that the government has to raise revenue in order to deliver services and personal income tax is, by a clear margin, the largest component of Australian Government revenue.

Justsaying,
I too am happy with a progressive tax system, although the specifics might differ. Even with a flat tax system, higher income earners would still pay more though.

“personal income tax is, by a clear margin, the largest component of Australian Government revenue.”

I think this is actually part of the problem in that we rely too highly on personal income taxes, whilst things like capital and consumption taxes are too low.

If we had a better balance in the tax system, income taxes could be lower across the board.

So if i lived in a house hold with two 90k incomes im better off than one 180k income

@chewy14
“If we had a better balance in the tax system …”
The very point on which we have agreed on many occasions. There needs to be a total review of our taxation system.

The first issue being that it would take a brave government (no matter what flavour they are), as very few punters would trust them to get it right – let alone the ‘scare mongering’ field day the ‘shock jocks’ would have. Plus the review would, of necessity, take longer than a single parliamentary term – given the consultation, etc. that would be needed.

Then it would need bipartisan support, which would also be an issue. But it’s hardly an issue that either party would openly campaign on.

Nevertheless, as we have discussed previously, indexation of the brackets would definitely be a move towards a “fairer” system.

@davo1
Well, of course … two people on 90k, individually pay less tax than one person on 180k. Why don’t you ask your boss to drop your salary so you pay less tax?

Yes davo1, the two 90k incomes are better off in two respects. The second is that one partner is not mendicant but can live independently, or leave.

Actual on-the-ground relief for Canberra’s insane cost of living?! It’s about time!
Rebates on electricity and vehicle rego would be very welcome for most Canberrans, while free PT for students and seniors is a no-brainer.

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