It’s little marvel so many in the Coalition weren’t too apprehensive about dropping final month’s federal election.
Some even joked they could now have time to play golf.
But there was extra to it than simply an urge for the occasional spherical of 18. Barely every week into governing, Labor’s frontbench is quick studying it is not getting a honeymoon interval.
If something, this is as straightforward as it’s going to get.
After nearly a decade in the political wilderness, the duties earlier than Labor are mounting by the day. That’s earlier than it will get to the agenda it has been elected to ship.
Making life even worse are a sequence of landmines — some even laid by Labor earlier than the final election — that danger blowing up in the newly minted government’s face.
There was a pivotal second in the marketing campaign that some in Labor suppose received the election.
Anthony Albanese was underneath strain over wages and located himself agreeing that the Fair Work Commission ought to elevate the minimal wage by 5.1 per cent — to replicate the most up-to-date inflation determine. No employee ought to go backwards, he argued.
The Coalition seized on the second and stated setting a determine was an overreach. But it quickly discovered itself wanting prefer it was in opposition to Australians getting a pay rise. Labor wished a combat on wages and the then government had given it one on a silver platter.
Labor received the election and, even earlier than all the votes had been counted, stormed into workplace vowing to be working from day one.
Among the first issues it did was make a submission to the Fair Work Commission on the minimal wage. What got here subsequent was a basic case of wanting your political cake and consuming it too.
An economic system — and government — underneath strain
“Economic conditions are particularly challenging given inflation is at a 21-year high of 5.1 per cent and is expected to increase further in the near-term due to persistent and compounding supply shocks,” the government wrote in its submission.
“In considering its decision on wages for this year, the Government recommends that the Fair Work Commission ensures real wages of Australia’s low-paid workers do not go backwards,” it added. In the submission doc the again half of the sentence was in daring; an effort by the government to nail its message.
Labor is aware of it will probably’t outright ask for a 5.1 per-cent improve in the minimal wage.
It’s not simply because it fears setting a precedent, although Employment and Workplace Relations Minister Tony Burke has sought to pre-empt assaults like that.
“You don’t start … with putting a fixed number on things in the submissions, as a rule,” he informed the ABC this week.
“But the cost of living crisis is so acute for people on lower wages that that’s why we felt the need to put in that straight principle that those workers should not be going backwards.”
The bother is, inflation may very well be a lot worse than 5.1 per cent by the time the new minimal wage takes pressure.
Treasurer Jim Chalmers all however predicted that when he spoke after the Reserve Bank of Australia raised the money price by 0.5 per cent — its largest single leap in a long time.
“It is the universal expectation across economists, the government and the Reserve Bank that this inflation challenge will get harder before it gets easier,” Mr Chalmers stated.
Labor may need positioned itself as being for increased wages throughout the marketing campaign and now it is in government. But if inflation continues to climb as anticipated, it’s going to face better strain to do extra to assist these struggling to make ends meet.
Another lure to be managed: hovering petrol costs
Albanese will likely be requested to ensure additional rises in inflation too will likely be met with increased wages. It’s a dedication he will not need to make however that will not cease the query being requested.
Chalmers used the RBA price rise to repeatedly say the government would provide extra value of residing measures in its October funds.
It’s a reminder that wages are just one lever the government can pull to take the strain off.
But this leaves Australians dealing with 4 months of getting by with what they’ve now, in a world the place all the things feels prefer it’s getting dearer by the day.
You want solely drive previous a petroleum station to see that. And right here too lies one other lure set earlier than the election that the government now must handle.
Labor backed the Coalition’s halving of the gasoline excise in the March funds. Both sides in the lead as much as the election insisted it was a six-month measure and the full tax could be reapplied to the costs in September, once they hoped costs could be cheaper.
Three months since that call, costs are again above $2 a litre, displaying few indicators of cooling any time quickly.
You can think about how common Chalmers will likely be if he decides to reimpose the additional 22 cents per litre. The blowback from households will likely be one factor; think about how companies already fighting hovering gasoline costs will reply.
The factor about gasoline costs is you can’t miss them. Even whenever you’re not shopping for petrol, the value is actually up in lights, reminding you simply how costly life is.
It’s little marvel it took 13 years to reverse the final “temporary” change made to gasoline excise in 2001.
Be cautious what you want for…
Economists say chopping the gasoline excise went some solution to serving to ease inflation. Reimposing it, you’d anticipate, would simply inflame it. Most economists had been in opposition to chopping the tax, even quickly, given it strips billions from a funds already drowning in deficits.
It leaves Labor in the tough place of claiming it is “for budget repair” whereas extending a coverage that blows a gap in income.
Critics accused Labor of getting a lightweight agenda forward of the election. The get together will get significantly irritated at recommendations it performed a small goal technique to win.
Global situations have given Labor a much bigger agenda — and headache — than it anticipated. War in Ukraine is grinding on, China is turning into ever extra assertive in the Pacific and provide chains are struggling underneath unprecedented demand.
Then there’s the integrity fee it has promised for this yr, and its pledge to legislate emissions reductions targets.
It’s little marvel Coalition politicians wished a relaxation. But they need to watch out with what they want for.
Labor spent 9 years out of energy when it final misplaced government.
The pleasure of a few rounds of golf will wane as the years cross, with every sport one other reminder you can’t change the nation from the thirteenth gap.
After all, as the adage goes, your worst day in government is nonetheless higher than your finest day in opposition.
As Australia’s economic challenges mount, the Albanese government is dodging political landmines all over the place & More Latest News Update
As Australia’s economic challenges mount, the Albanese government is dodging political landmines all over the place & More Live News
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