May 19th 2024.
Many Australians are expressing concern over the recent federal budget, with fears that it may lead to an increase in interest rates. According to a new poll featured in today's Australian Financial Review, only a quarter of people believe that they will benefit from the budget. Despite the government's efforts to provide relief, such as the $300-per-household power bill discount, the majority of voters are not convinced that the budget will alleviate the cost of living.
The survey, which gathered responses from 1056 voters, also revealed that 39% of people believe that the large spending measures in last Tuesday's budget will actually increase the likelihood of interest rate rises. This is in stark contrast to the 28% who believe it will have no effect and the mere 11% who think it will decrease the chances of a rate increase. These findings align with the predictions of Treasury, which suggest that while the budget may help reduce inflation, it will not have a significant impact on the cash rate.
Interestingly, the poll also uncovered that despite the budget's $7.8 billion cost-of-living package, $1.9 billion in increased rent assistance, and cheaper medicines, voters were generally unimpressed. Only 24% of participants felt that their household would be financially better off, while 46% predicted no change and 23% believed they would actually be worse off.
It seems that the budget has not had much effect on the popularity of the two major political parties among voters. The results of the poll showed that Labor and the Coalition were tied at 50% on a two-party-preferred basis, the same as a previous poll conducted a month ago. The primary vote for Labor did increase by 1% to 32%, but the Coalition's remained unchanged at 40%.
Overall, the budget does not seem to have swayed voters towards one party or the other. If a federal election were to be held today, it would likely be a close race between the major parties. Despite the government's efforts to provide relief and stimulate the economy, it appears that many Australians are still uncertain about the impact of the budget on their personal finances.
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