The rising cost of living is by far the biggest concern on NSW voters’ minds as they prepare to cast their vote on March 25.
With that in mind, Crikey asked Premier Dominic Perrottet and Opposition Leader Chris Minns what solutions each would offer if they win at the upcoming election.
Cost-of-living pressures are squeezing households in states and territories across the country. At the end of the December quarter last year, the consumer price index rose to 7.8%, the highest rate seen since 1990.
During that quarter, Sydney saw the second-highest jump in inflation in any state or territory, rising 1.8% and taking inflation for the NSW capital to 7.6% annually, second only to Perth.
According to the Australian Bureau of Statistics, the costs of travel and accommodation in Sydney, paired with the expiry of older accommodation voucher schemes offered by the NSW government, drove the bump.
So too did new home purchases by owner-occupiers, the ABS said, as well as international travel, financial services and the cost of childcare. Wages growth in both the private and public sectors, meanwhile, was soft, at 3.6% and 3.3% respectively — less than half the rate of inflation.
“It’s the biggest issue by a fair margin,” Kos Samaras, director of the polling outfit RedBridge Group, told Crikey.
“The problem is the states don’t have many levers to pull here, and so they risk coming across to voters as disconnected from what they think is the solution to the problem.”
Here’s what the leaders had to say.
What would a government led by you offer NSW residents when it comes to the cost of food, utilities and housing?
Opposition Leader Chris Minns took aim at the NSW government, whose privatisation agenda he said had caused a “housing and rental crisis” and sent energy bills soaring.
“NSW Labor will invest in community batteries to help households take advantage of their rooftop solar, use more of the power they actually generate, and lower their overall power bills,” Minns told Crikey.
“We will remove or reduce stamp duty for 95% of first home buyers, abolish the Liberals forever land tax on the family home and implement real reform for renters.”
Premier Dominic Perrottet said that only the Liberal and Nationals’ “long-term economic plan” would take pressure off household budgets.
“We are making a commitment to families and businesses across the state that there will be no new taxes in the next term of government under the Liberal and Nationals, providing them with financial certainty as they manage their budgets,” Perrottet told Crikey.
“This is on top of more than $7 billion already provided by our Liberal and Nationals government to help ease the pressure on household budgets, which is only possible thanks to our long-term economic plan to keep our state moving forward.”
A key cost-of-living battleground for both leaders beyond household budgets continues to be their respective positions on public sector wages.
The NSW government first introduced a wages cap on its 430,000 public servants in 2011, which was eventually lifted to 3% from 2.5% last year, with another 0.5% bump on the cards for next year should the state make enough cash in productivity gains to fund it.
Labor wants to dispense with the cap altogether, and give government employees free rein to negotiate.
Minns indicated last year he’d like public sector wages to keep pace with inflation, which is currently at a 30-year high and more than triple the state’s wages cap. Labor hasn’t yet clearly set out how the party would fund wage increases beyond the cap.
The Coalition has hammered the point on various occasions. Minns says it’s a scare campaign and that Labor wouldn’t have a problem finding the money.
Do you have any short-term tax reform ambitions? If so, what are they?
Perrottet responded: “Our landmark stamp duty reforms, which give first home buyers the choice of paying a small annual fee instead of a large upfront stamp duty payment, will save families $900 million over the next four years.
“We are also supporting renters to get into housing in a fairer way, without stressful bidding wars where people get pushed beyond their comfort levels. Our ban on solicited rent bidding is already improving affordability for those looking for rentals. These new measures will provide even greater certainty and flexibility for nearly a million renters across NSW.”
Minns responded by pointing to Labor’s plan to abolish the Liberal government’s “forever land tax”.
Both parties have ruled out tax increases in the four years following the election, along with the privatisation of further state assets.
The government came out with its rental support measures earlier this month, following sustained pressure from community housing experts calling for a more realistic policy offering from each of the major parties as NSW descends into a crippling state of rental stress.
Among the electorates worst affected is Minns’ own seat of Kogarah, held by a paper-thin margin of 0.1%, where 9.5% of all households in January reported to be suffering rental stress, accounting for about 3400 families and individuals.
NSW Labor has issued a “portable bonds” pitch to renters, who would be able to bypass stumping up thousands of dollars for a bond when moving home, and instead transfer their existing bond.
The party has also pledged to review lease-ending laws in consultation with “stakeholder and advocacy groups” to develop a list of reasonable grounds for an owner to end a tenancy agreement, “including minimum notice” requirements.
So far, only the NSW Greens have a housing plan that targets social and affordable housing, although details related to budgetary commitments and scope have yet to be released.
With the cost-of-living crisis in mind, what is your pitch to voters who think voting for your opponent might make their lives easier?
Minns responded: “After 12 years of the Liberals, NSW has a cost-of-living crisis that is only getting worse. Power prices have increased and that has been a direct result of privatisation, which we know the premier supported.
“NSW Labor has a real plan to address cost-of-living concerns such as toll relief and we can promise we won’t privatise any assets, such as Sydney Water, which would only drive up prices.”
Perrottet responded: “We know households are feeling the pinch right now and that’s why we will provide immediate bill relief as well as help families get a better energy deal. This is $250 in short-term energy savings whilst at the same time ensuring NSW households can slash their bills into the future.
The premier went on to mention a forthcoming government voucher program for parents to pay for children’s after-school activities, a toll-relief scheme saving each consumer a maximum of $750, a $1000 fee relief scheme for small businesses, and several other voucher programs.
“We know that supply chain issues have been one of the biggest contributors to inflation, with the pandemic, war in Ukraine and extreme weather events wreaking havoc on our freight industry,” Perrottet said.
“That is why we will move quickly to appoint a new supply chain commissioner who will be specifically tasked with finding innovative ways to unblock our supply chains and ensure families get the best deal at the checkout.
“By tackling our supply chain issues head-on, we will provide long-term relief to families feeling the pinch from rising inflation.”
Are the major parties doing enough? Has either leader swayed your vote ahead of the NSW election? Let us know your thoughts by writing to letters@crikey.com.au. Please include your full name to be considered for publication. We reserve the right to edit for length and clarity.
