“Australians are getting poorer as ABS data has confirmed a record seventh consecutive quarter of negative per capita economic growth. This means Australians today are $4,310 per annum worse off due to this personal recession,” said Morgan Begg, Director of Research at the Institute of Public Affairs.
Today, Australian Bureau of Statistics’ National Accounts data for the September quarter of 2024 revealed: (Charts below)
- Australians are $4,310 worse off, per annum, as real GDP per capita has fallen behind the pre-pandemic growth trend during the Albanese government’s term of office.
- In the September quarter, GDP per capita fell 0.3 per cent, and through the year has declined 1.5 per cent.
- GDP per capita has declined for seven quarters in a row – the longest decline since seasonally adjusted records began in 1973.
- Eight out of the nine full quarters under the Albanese government has seen a decline in Australians’ living standards and economic wellbeing.
“Australians continue to be mired in an unprecedented period of personal recession. Increased government spending, which only papers over the cracks, does not address the root cause of the cost-of-living crisis, and only exacerbates the problems facing mainstream Australians,” said Mr Begg.
The ABS data follows new IPA research, which found that over the course of the Albanese government, total government spending (federal, state, and local) has accounted for 55 per cent of total GDP growth, while private sector investment and net exports has collapsed to just 6 per cent in this term of office.
“With spending at all levels of government almost back to emergency pandemic levels, coupled with the federal government’s record migration intake, there is now a perfect storm of high inflation, declining household incomes, and record rises in house prices and rents,” said Mr Begg.
“The private sector is the fundamental driver of meaningful and sustained economic growth. Yet, governments are strangling Australian businesses with record levels of red tape and job destroying tax policies. Governments at all levels are holding us back.”
The ABS data follows new IPA research, which found that over the term of the Albanese government, total government spending (federal, state, and local) has accounted for 55 per cent of total GDP growth, while private sector investment and net exports has collapsed to just 6 per cent.
“The federal government has solely relied on the lazy approach of record migration intakes to keep the overall economy from slipping into recession. While this approach grows the overall economic pie, it leaves the typical individual Australian with an ever-shrinking slice,” said Mr Begg.
“Allowing record arrivals without any plan for the requisite housing and social infrastructure is putting additional stress on public services that further crush the living standards of mainstream Australians.”
“Australia is a welcoming country, but migration must be planned for, have the consent of the community, and build the economic prosperity of all Australians. On each count, the federal government has failed,” said Mr Begg.
To download the IPA’s previous research click here.
