More empty promises from out of touch Prime Minister

The Hon. Angus Taylor MP
Shadow Treasurer
Federal Member for Hume

Angie Bell MP
Shadow Minister for Early Childhood Education
Shadow Minister for Youth
Federal Member for Moncrieff

JOINT MEDIA RELEASE
More empty promises from out of touch Prime Minister

8 August 2024

The Albanese Government have once again shown Australian families they care more about politics then tackling rising cost of living pressures and inflation.

Today’s announcement on child care wages is further proof that Labor is all about spin, not substance. It is abundantly clear that the Albanese Labor Government does not have a meaningful plan to restore the Australian way of life.

Labor has bypassed the independent Fair Work Commission process all at the behest of their union masters. Labor has traded away billions of dollars for a cap on child care fees that only lasts twelve months. This deal offers no real relief to Australian families who can’t afford child care or are struggling to find a child care place.

If child care fees grow at the 4.4 per cent cap over the next year, by the time of the election, out of pocket expenses will have increased by over 8 per cent under Labor – so much for cheaper child care. Families can plainly see that any benefits from Labor’s policies introduced in 2023 have been eroded ever since.

The Coalition wants to see higher real wages for all Australians, including hardworking childhood educators. But the key to meaningful wage increases is to bring down inflation and boost labour productivity.

The Prime Minister’s claims of up to $155 per week pay increase fails to take into account the ongoing cost of living crisis which will see around half of these nominal gains eroded by inflation. In December 2025, next year beyond the election, when this policy comes into full effect is when inflation is forecast by the RBA to once again jump up to 3.7 per cent – thanks to the Albanese Government.

The Treasurer has previously been caught out using nominal wages, not real wages, to claim Australian’s are better off. Labor does not learn – it continues to spin.

Working Australians have seen their living standards collapse under Labor because of soaring costs. Labor’s failure to break the back of inflation means hardworking families are paying higher prices, higher interest rates and higher taxes for longer.

Shadow Treasurer Angus Taylor said this policy announcement was another empty promise from a Prime Minister who is out of touch and out of his depth.

“All educators do incredibly valuable work for our communities. Of course we would like them to have better pay.

“But today’s announcement from the Prime Minister shows he doesn’t understand why Australians are under so much cost of living pain: Labor’s homegrown inflation.

“As the Reserve Bank Governor noted this week, government spending is adding fuel to the inflationary fire. That means inflation, and therefore interest rates, will stay higher for longer.

“The latest ABS Living Cost Index tells us that cost have soared by over 18 per cent for working families since Labor came to power.

“We have also seen real wages for employees fall by 9 per cent and living standards by 8 per cent.

“Australians are suffering immensely because of Labor’s economic mismanagement. Things will not get better until inflation has been beaten.”

Shadow Minister for Early Childhood Education, Angie Bell said early childhood educators deserve better than this Labor Government who continue to use them as a political football.

“Early childhood educators do an incredible job caring for and educating our youngest Australians, but the reality is that this policy is a pre-election sweetener, and an effort to appease Labor’s union paymasters,” Ms Bell said.

“Labor promised families cheaper child care, and yet 12 months on and out of pockets costs have increased by 8.4 per cent, and there are still no new places for regional Australians suffering from no access.
“What happens in two years when the 15 per cent has been paid and the cap on restraints is lifted? It’s Australian families who will ultimately foot the bill.”

The cost of living crisis is getting worse for Australians and the Albanese Government’s inability to manage the economy and their reckless spending is hurting families and businesses around the country

Today’s announcement is just another example of Labor delaying until after the election. After more than two years of promises they do not have a real plan.

Australian families deserve better than Labor.

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