Recent polling indicates that Australian voters overwhelmingly blame the federal government, particularly the Labor Party, for the ongoing cost-of-living crisis. The Resolve Political Monitor shows that 46% of voters hold the government responsible, up 6 percentage points since March and 10 points since October 2024. This sentiment reflects a growing frustration with economic conditions, with fewer than 10% expecting improvement in the next month and only 25% optimistic about the next year.
While Treasurer Jim Chalmers has argued that global factors, such as wars in Ukraine and Iran, fuel shortages, and US President Donald Trump's tariffs, contribute to inflation, voters remain focused on domestic policies. The Reserve Bank, under Governor Michele Bullock, has raised interest rates four times this year, but only 4% of voters blame the central bank for cost-of-living pressures. Bullock’s guarded approach has so far shielded her from public anger, unlike her predecessor Philip Lowe.
The government faces an uphill battle to shift public perception before the next election. With cost-of-living issues dominating voter concerns, reversing the belief that Labor is profligate with taxpayer money will be challenging. The Coalition and One Nation have seized on this narrative, making it crucial for Labor to act quickly to regain public trust.