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CPI confirms devastating impact of Labor's carbon tax on cost of living



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MEDIA RELEASE

THE HON JOE HOCKEY MP

SHADOW TREASURER

Wednesday, 24 October 2012

CPI CONFIRMS DEVASTATING IMPACT OF LABOR’S CARBON TAX ON COST OF LIVING

Today’s CPI figures confirm the devastating impact of Labor’s carbon tax and private health insurance changes on household budgets.

Under Labor the prices of essentials such as electricity, gas and health services, continue to go up and up - and Labor’s reckless policymaking plays a significant part in these price rises.

The September quarter CPI came in significantly higher than expected on both a headline and underlying basis.

The rise in electricity prices, of 15.3% for the September Quarter, was the biggest quarterly increase since records began in December 1980.

This takes the total price rise for electricity since Labor came to power to a massive 89.4%.

Medical and hospital services also rose by 4.5% in the quarter which the ABS stated was “mainly as a result of means-testing reforms of the Private Health Insurance rebate effective from 1 July 2012”.

Wayne Swan’s war on families has continued in the mid-year mini budget (MYEFO) with further cuts to private health insurance and reductions in the Baby Bonus.

Labor’s Budget update includes a $3.9 billion hit on education; and a $1.6 billion hit on health. This can only have the effect of increasing prices or decreasing services for Australian families.

Wayne Swan is clearly out of touch with Australian families and the cost of living pressures they face.

Under Labor, not only are Australians paying more for essentials, but they are also paying a high price for Wayne Swan’s waste, mismanagement and reckless policy making.

[ENDS]

ATTACHED: COST OF LIVING STATISTICS - THE COST OF ESSENTIALS KEEPS RISING UNDER LABOR

COST OF LIVING STATISTICS - THE COST OF ESSENTIALS KEEPS RISING UNDER LABOR

Electricity has gone up 15.3% in the last quarter alone. Gas and other household fuels have gone up 14.2% in the last quarter alone. Medical and hospital services have gone up 4.5% in the last quarter alone.

Percentage cost of living increase since ALP came to power - December Qtr 2007 to September Qtr 2012

Category Increase / (Decrease) % Electricity 89.4%

Water and Sewerage 64.0%

Utilities 77.2%

Gas 62.0%

Insurance 38.7%

Education 31.2%

Medical and Hospital Services

38.4%

Rents 28.2%

(Source: ABS, CPI, September Qtr 2012, 6401.0)

Percentage cost of living increase since Julia Gillard became Prime Minister - June Qtr 2010 to September Qtr 2012

Category Increase / (Decrease) % Electricity 41.4%

Water and Sewerage 27.1%

Utilities 35.3%

Gas 28.7%

Insurance 15.7%

Education 12.3%

Medical and Hospital Services

15.3%

Rents 10.0%

(Source: ABS, CPI, September Qtr 2012, 6401.0)