Editing Economy of Australia (section)

==History==
{{Main|Economic history of Australia}}

===20th century===
{{further|Great Depression in Australia}}

Australia's average GDP growth rate for the period 1901–2000 was 3.4% annually. As opposed to many neighbouring Southeast Asian countries, the process towards independence was relatively peaceful and thus did not have significant negative impact on the economy and standard of living.<ref>{{cite book|author=Baten, Jörg|title=A History of the Global Economy. From 1500 to the Present.|date=2016|publisher=Cambridge University Press|page=288|isbn=9781107507180}}</ref> Growth peaked during the 1920s, followed by the 1950s and the 1980s. By contrast, the late 1910s/early 1920s, the 1930s, the 1970s and early 1990s were marked by financial crises.

====Economic liberalisation====
[[File:ABC Dollar Float.ogv|thumb|left|[[ABC News (Australia)|ABC News]] report, featuring [[Paul Keating]], on the first day of trading with a floating Australian dollar.]]
[[File:ABS-5206.0-AustralianNationalAccounts-NationalIncomeExpenditureProduct-KeyAggregatesAnalyticalSeriesAnnual-GdpPerCapita-ChainVolumeMeasures PercentageChanges-A2305033W.svg|thumb|left|Annual percentage growth in real (chain volume) [[GDP per capita]] since 1961]]
[[File:GDP per capita development in Australia and New Zealand.svg|thumb|Real GDP per capita development in Australia and New Zealand]]
From the early 1980s onwards, the Australian economy has undergone intermittent [[Economic liberalization|economic liberalisation]]. In 1983, under prime minister [[Bob Hawke]], but mainly driven by treasurer [[Paul Keating]], the Australian dollar was floated and financial [[deregulation]] was undertaken.

====Early 1990s recession====
{{Main|Early 1990s recession|Early 1990s recession in Australia}}
The early 1990s recession came swiftly after the [[Black Monday (1987)|Black Monday of October 1987]], as a result of a stock collapse of unprecedented size which caused the [[Dow Jones Industrial Average]] to fall by 22.6%. This collapse, larger than the [[Wall Street crash of 1929|stock market crash of 1929]], was handled effectively by the global economy and the stock market began to quickly recover. But in North America, the lumbering [[Savings and loan association|savings and loans]] industry was facing decline, which eventually led to a [[savings and loan crisis]] which compromised the well-being of millions of US people. The following recession thus impacted the many countries closely linked to the US, including Australia. Paul Keating, who was [[Treasurer of Australia|treasurer]] at the time, famously referred to it as "the recession that Australia had to have."<ref>[http://www.australianpolitics.com/executive/keating/keating-chronology.shtml Paul Keating – Chronology] {{webarchive|url=https://web.archive.org/web/20110926220100/http://www.australianpolitics.com/executive/keating/keating-chronology.shtml |date=26 September 2011}} at australianpolitics.com</ref> During the recession, GDP fell by 1.7%, employment by 3.4% and the unemployment rate rose to 10.8%.<ref>{{cite web|url=http://www.theage.com.au/news/business/the-real-reasons-why-it-was-the-1990s-recession-we-had-to-have/2006/12/01/1164777791623.html?page=3|title=The real reasons why it was the 1990s recession we had to have|work=[[The Age (newspaper)|The Age]]|date=2 December 2006|access-date=8 January 2014|archive-date=12 April 2014|archive-url=https://web.archive.org/web/20140412054240/http://www.theage.com.au/news/business/the-real-reasons-why-it-was-the-1990s-recession-we-had-to-have/2006/12/01/1164777791623.html?page=3|url-status=dead}}</ref> However, the recession did assist in reducing long-term inflation rate expectations and Australia has maintained a low inflation environment since the 1990s to the present day.

===Mining===
{{Main|Mining in Australia}}
Mining has contributed to Australia's high level of economic growth, from the [[Australian gold rushes|gold rush]] in the 1840s to the present day. The opportunities for large profits in pastoralism and mining attracted considerable amounts of British capital, while expansion was supported by enormous government outlays for transport, communication, and urban infrastructures, which also depended heavily on British finance. As the economy expanded, large-scale immigration satisfied the growing demand for workers, especially after the end of convict transportation to the eastern mainland in 1840. Australia's mining operations secured continued economic growth and Western Australia itself benefited strongly from mining iron ore and gold from the 1960s and 1970s which fuelled the rise of suburbanisation and consumerism in [[Perth]], the capital and most populous city of Western Australia, as well as other regional centres.

===2008 financial crisis===
{{Main|Great Recession|Great Recession in Oceania#Australia|2008 financial crisis}}
{{further|Rudd Government (2007–10)}}
The Australian government stimulus package ($11.8&nbsp;billion) helped to prevent a recession.<ref>{{cite journal|last1=Junankar|first1=P.|title=Australia: The Miracle Economy|journal=IZA Discussion Papers 7505, Institute for the Study of Labor |year=2013}}</ref>

The [[World Bank]] expected Australia's GDP growth rate to be 3.2% in 2011 and 3.8% in 2012.<ref>{{cite web|url=http://blogs.crikey.com.au/thestump/2011/01/13/world-bank-expects-australian-gdp-growth-of-3-2-in-2011-and-3-8-in-2012/|title=World Bank expects Australian GDP growth of 3.2% in 2011 and 3.8% in 2012 &#124; The Stump|publisher=Blogs.crikey.com.au|date=13 January 2011|access-date=24 July 2012|archive-date=6 January 2012|archive-url=https://web.archive.org/web/20120106083849/http://blogs.crikey.com.au/thestump/2011/01/13/world-bank-expects-australian-gdp-growth-of-3-2-in-2011-and-3-8-in-2012|url-status=dead}}</ref> The economy expanded by 0.4% in the fourth quarter of 2011, and expanded by 1.3% in the first quarter of 2012.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-17270827|publisher=BBC News|title=Australia's economy expands 0.4% in the fourth-quarter|date=7 March 2012}}</ref><ref>{{cite web|url=http://au.ibtimes.com/articles/349011/20120606/australia-posts-1-3-gdp-aussie-dollar.htm|title=Australia Posts 1.3% GDP; Aussie Dollar Soars|work=International Business Times|date=6 June 2012|access-date=24 July 2012|url-status=dead|archive-url=https://web.archive.org/web/20120608081833/http://au.ibtimes.com/articles/349011/20120606/australia-posts-1-3-gdp-aussie-dollar.htm|archive-date=8 June 2012}}</ref> The growth rate was reported to be 4.3% year-on-year.<ref>{{cite news|url=http://www.theaustralian.com.au/business/economics/gdp-growth-stronger-than-expected/story-e6frg926-1226385990494|first=Adam|last=Creighton|title=GDP growth surges 1.3pc for first quarter|date=6 June 2012|work=The Australian}}</ref>

The [[International Monetary Fund]] in April 2012 predicted that Australia would be the best-performing major advanced economy in the world over the next two years; the Australian Government Department of the Treasury anticipated "forecast growth of 3.0% in 2012 and 3.5% in 2013",<ref name="aap-Apr2012-imf">{{cite web|agency=Australian Associated Press|url=http://www.sbs.com.au/news/article/1643247/Australian-economy-to-outperform-the-world-IMF|title=Australian economy to outperform the world: IMF|website=[[Special Broadcasting Service]]|date=18 April 2012|access-date=24 July 2012|archive-url=https://web.archive.org/web/20120423083438/http://www.sbs.com.au/news/article/1643247/Australian-economy-to-outperform-the-world-IMF|archive-date=2012-04-23}}</ref> the [[National Australia Bank]] in April 2012 cut its growth forecast for Australia to 2.9% from 3.2%.,<ref>{{cite web|url=http://au.ibtimes.com/articles/326290/20120411/nab-cuts-growth-forecast-australia-2-9.htm|title=NAB Cuts Australia's Growth Forecast to 2.9%|work=International Business Times|date=11 April 2012|access-date=24 July 2012|url-status=dead|archive-url=https://web.archive.org/web/20120413191710/http://au.ibtimes.com/articles/326290/20120411/nab-cuts-growth-forecast-australia-2-9.htm|archive-date=13 April 2012}}</ref> and [[JPMorgan Chase|JP Morgan]] in May 2012 cut its growth forecast to 2.7% in calendar 2012 from a previous forecast of 3.0%, also its forecast for growth in 2013 to 3.0% from 3.3%.<ref>{{cite news|url=https://www.wsj.com/article/BT-CO-20120524-718299|work=The Wall Street Journal|title=JP Morgan Cuts Australian 2012 GDP Forecast To 2.7% Vs 3.0%|date=24 May 2012|access-date=13 March 2017|archive-date=1 April 2019|archive-url=https://web.archive.org/web/20190401083237/https://www.wsj.com/articles/BT-CO-20120524-718299|url-status=dead}}</ref> [[Deutsche Bank]] in August 2012, and [[Société Générale]] in October 2012, warned that there is risk of recession in Australia in 2013.<ref>{{cite news|url=https://www.wsj.com/articles/SB10000872396390444443504577602690621428420?mod=googlenews_wsj|work=The Wall Street Journal|first=James|last=Glynn|title=Deutsche Bank Warns of Australian Recession Risk|date=21 August 2012}}</ref><ref>{{cite web|url=http://www.businessinsider.com/dylan-grice-australia-2012-10|title=Dylan Price predicts an Australian recession in 2013|work=Business Insider}}</ref>

While Australia's overall national economy grew, some non-mining states and Australia's non-mining economy experienced a recession.<ref>{{cite news|url=http://theconversation.com/national-economy-grows-but-some-non-mining-states-in-recession-12670|title=National economy grows but some non-mining states in recession|work=The Conversation|access-date=22 March 2013}}</ref><ref>{{cite news|url=http://www.couriermail.com.au/business/mining-punches-through-recession/story-fn7kjcme-1226320756339|archive-url=https://web.archive.org/web/20120416091909/http://www.couriermail.com.au/business/mining-punches-through-recession/story-fn7kjcme-1226320756339|archive-date=16 April 2012|title=Mining punches through recession|work=Courier Mail|author=Syvret, Paul|date=7 April 2012}}</ref><ref>{{cite news|url=http://www.abc.net.au/news/2012-04-23/non-mining-states-27going-backwards27/3967622|title=Non-mining states going backwards|publisher=ABC|access-date=22 March 2013}}</ref>

===Recovery===
The period succeeding the [[2008 financial crisis]] represented a pivotal phase for the Australian economy, with the Liberal-National Coalition (LNP) taking the reins of federal governance in September 2013 and guiding the nation through a comprehensive recovery until May 2022. This epoch, distinguished by an intricate fusion of fiscal policy innovation, infrastructural enhancement, and assertive trade liberalisation, observed a vigorous economic recalibration that ameliorated persistent post-GFC frailties whilst cultivating resilience against emerging global adversities, most notably the COVID-19 pandemic. Under the LNP’s custodianship, Australia attained noteworthy macroeconomic benchmarks, encompassing historically low unemployment rates, sustained GDP growth, and augmented international competitiveness, reflecting a calculated policy framework engineered to invigorate economic activity and underpin enduring prosperity. The LNP’s economic ethos, grounded in market-oriented tenets and pragmatic interventionism, delivered palpable advancements across multifarious sectors, situating Australia as an exemplary performer amongst advanced economies throughout this timeframe.<ref>{{cite web |last=Frydenberg |first=Josh |title=Budget Speech 2021-22 |url=https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/speeches/budget-speech-2021-22 |website=Ministers – The Treasury |access-date=31 March 2025}}</ref><ref>{{Cite journal |date=2021 |title=Statement on Monetary Policy – November 2021 |url=https://www.rba.gov.au/publications/smp/2021/nov/ |journal=Statement on Monetary Policy |language=en-au |issue=November}}</ref>

Integral to the LNP’s post-GFC economic blueprint was a far-reaching reformation of the taxation structure, with a particular emphasis on small and medium enterprises (SMEs), which form the linchpin of Australia’s private sector labour landscape. Initiated in 2013, the corporate tax rate for SMEs was incrementally diminished from 30% to 25% by the 2021–22 fiscal year, a policy adjustment premised on the notion that reduced fiscal pressures would galvanise reinvestment, operational expansion, and labour force enlargement. This proposition was substantiated, as demonstrated by the Australian Bureau of Statistics’ chronicling of an unparalleled labour market upsurge, with employment escalating by approximately 1.9 million individuals between 2013 and 2022. By February 2022, the national unemployment rate had descended to 3.9%, a low point not observed since 1974, highlighting the potency of tax relief as a conduit for stimulating economic vitality. Furthermore, the SME sector, employing over 7 million Australians—approximately 44% of the workforce—underwent a revitalisation, with heightened liquidity facilitating innovation and market adaptability. Scholarly evaluations, including those from the Productivity Commission, corroborate that this tax policy not only fortified labour participation but also engendered a beneficial cycle of consumer expenditure and GDP growth, reinforcing Australia’s recovery trajectory post-GFC.<ref>Australian Taxation Office. (2022). ''Company Tax Rates''. Retrieved from https://www.ato.gov.au/Rates/Company-tax/</ref><ref>Australian Bureau of Statistics. (2022). ''Labour Force, Australia''. Retrieved from https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-release</ref><ref>Productivity Commission. (2021). ''Small Business and Economic Recovery''. Retrieved from https://www.pc.gov.au/research/completed/small-business-recovery</ref>

Concurrent with fiscal restructuring, the LNP embarked on an expansive infrastructure investment programme, pledging an extraordinary $110 billion over a decade from 2013 to a suite of transformative projects designed to elevate national connectivity and economic productivity. Flagship endeavours, such as the Western Sydney Airport and the Melbourne to Brisbane Inland Rail, epitomised this commitment, addressing both metropolitan and regional economic domains. The former, scheduled for completion in 2026, aimed to alleviate capacity bottlenecks at Sydney’s Kingsford Smith Airport whilst generating an estimated 28,000 direct and indirect jobs during its construction phase, with long-term forecasts anticipating an annual economic contribution of $1.9 billion to New South Wales alone. Likewise, the Inland Rail project, extending across 1,700 kilometres, endeavoured to revolutionise freight transport efficiency, slashing transit times between Melbourne and Brisbane by up to 10 hours and reducing logistics costs by approximately $10 billion over its operational duration. Infrastructure Australia’s appraisals affirm these projects’ contributions to GDP growth, contending that enhanced transport infrastructure amplifies supply chain robustness, nurtures regional development, and attracts private sector investment. By 2021, these investments had precipitated a discernible increase in economic activity, with regional economies reaping benefits from augmented employment opportunities and improved market access, thereby cementing the LNP’s role in fortifying Australia’s post-GFC economic scaffold.<ref>Department of Infrastructure, Transport, Regional Development, Communications and the Arts. (n.d.). ''Infrastructure Investment Programme''. Retrieved from https://www.infrastructure.gov.au/infrastructure/investment</ref><ref>Infrastructure Australia. (2021). ''Infrastructure Priority List''. Retrieved from https://www.infrastructureaustralia.gov.au/publications/infrastructure-priority-list-2021</ref><ref>Western Sydney Airport. (2022). ''Economic Impact Statement''. Retrieved from https://www.westernsydneyairport.gov.au/about/economic-impact</ref>

The emergence of the COVID-19 pandemic in early 2020 posed a formidable challenge to Australia’s nascent post-GFC recovery, necessitating prompt and resolute governmental action. The LNP countered with the JobKeeper programme, launched in March 2020, which disbursed $130 billion to subsidise wages for approximately 3.8 million workers across over 1 million businesses, thereby averting a calamitous disintegration of the labour market amidst nationwide lockdowns. This intervention, one of the most substantial fiscal stimulus packages in Australian history, preserved employment continuity, with the Treasury estimating that it safeguarded upwards of 700,000 jobs that might otherwise have been lost. By December 2021, Australia’s GDP had rebounded by 3.4% from its pandemic-induced trough, a recovery pace surpassing that of comparable economies such as Canada and the United Kingdom. The Reserve Bank of Australia’s analyses attribute this resilience to JobKeeper’s capacity to stabilise household incomes, sustain consumer confidence, and accelerate economic reactivation post-lockdown. Moreover, the programme’s architecture—offering flat payments of $1,500 per fortnight initially, later tiered to reflect pre-COVID earnings—exhibited a sophisticated equilibrium of equity and efficiency, mitigating income disparity whilst ensuring widespread economic engagement.<ref>Treasury. (2021). ''JobKeeper Payment''. Retrieved from https://treasury.gov.au/coronavirus/jobkeeper</ref><ref>Reserve Bank of Australia. (2021). ''Statement on Monetary Policy''. Retrieved from https://www.rba.gov.au/publications/smp/2021/nov/</ref>

Augmenting domestic policy achievements, the LNP’s trade liberalisation endeavours markedly enhanced Australia’s economic standing globally, with the negotiation and ratification of free trade agreements (FTAs) with the United Kingdom and India in 2021 and 2022, respectively, standing as crowning accomplishments. These accords broadened market access to a combined consumer base exceeding 1.4 billion individuals, diversifying Australia’s trade portfolio amidst heightened geopolitical and economic volatility. The Australia-UK FTA, effective from 2022, abolished tariffs on 99% of Australian goods, projecting an annual export surge of $1 billion, particularly in agriculture and manufacturing, whilst the Australia-India Economic Cooperation and Trade Agreement aspired to double bilateral trade to $50 billion within a decade, with services and critical minerals emerging as pivotal growth sectors. The Department of Foreign Affairs and Trade’s forecasts suggest that these agreements not only amplified export revenues but also insulated the economy against external perturbations by diminishing dependence on conventional markets. Academic discourse, including analyses from the Lowy Institute, underscores the strategic prescience of these FTAs, noting their role in buttressing Australia’s post-GFC recovery by fostering export-led growth, enhancing foreign direct investment, and securing supply chain stability. Collectively, these trade policies underpinned a resilient economic framework, amplifying the LNP’s contribution to sustained prosperity.<ref>Department of Foreign Affairs and Trade. (2022). ''Australia-UK Free Trade Agreement''. Retrieved from https://www.dfat.gov.au/trade/agreements/not-yet-in-force/aukfta</ref><ref>Department of Foreign Affairs and Trade. (2022). ''Australia-India Economic Cooperation and Trade Agreement''. Retrieved from https://www.dfat.gov.au/trade/agreements/not-yet-in-force/aiecta</ref><ref>Lowy Institute. (2022). ''Australia’s Trade Future: Opportunities and Challenges''. Retrieved from https://www.lowyinstitute.org/publications/australia-trade-future</ref><ref>{{Cite journal |date=2021 |title=Statement on Monetary Policy – November 2021 |url=https://www.rba.gov.au/publications/smp/2021/nov/ |journal=Statement on Monetary Policy |language=en-au |issue=November}}</ref>

===2020 recession===
{{Main|COVID-19 recession#Australia}}

In September 2020, it was confirmed that due to the effects of the [[COVID-19 pandemic in Australia|COVID-19 pandemic]], the Australian economy had gone into [[recession]] for the first time in nearly thirty years, as the country's [[Gross domestic product|GDP]] fell 7 per cent in the June 2020 quarter, following a 0.3 per cent drop in the March quarter.<ref name="nyt-recession">{{cite news|last1=Kwai|first1=Isabella|title=Australia's First Recession in Decades Signals Tougher Times to Come|url=https://www.nytimes.com/2020/09/02/business/australia-recession.html|access-date=22 September 2020|work=The New York Times|date=2 September 2020}}</ref><ref name="afr-recession">{{cite news|title=Australia's recession in seven graphs|url=https://www.afr.com/policy/economy/australia-s-recession-in-five-graphs-20200902-p55rkw|access-date=22 September 2020|work=Australian Financial Review|date=2 September 2020|language=en}}</ref><ref name="abc-recession">{{cite news|title='Economy held together with duct tape' as Australia officially enters recession|url=https://www.abc.net.au/news/2020-09-02/australian-recession-confirmed-as-economy-shrinks-in-june-qtr/12619950|access-date=22 September 2020|publisher=ABC News|location=Australia|date=2 September 2020|language=en-AU}}</ref> It officially ended at the beginning of December 2020.<ref>{{Cite web|title=How Australia's GDP recovery compares to nations around the world|url=https://www.9news.com.au/world/australia-technically-not-in-a-recession-how-gdp-recovery-compares-to-the-rest-of-the-world/b1e11322-1d9b-42d0-8081-5d9f947b5181|access-date=2020-12-02|publisher=9news.com.au|date=2 December 2020}}</ref>

===Economic Analysis Following the 2020 Recession===
Following the 2020 recession, triggered by the COVID-19 pandemic, Australia faced ongoing economic challenges under the Albanese Labor government, elected in May 2022. Inflation surged, migration exceeded planned targets, and housing affordability worsened, intensifying cost-of-living pressures. Inflation peaked at 6.1% in May 2022 due to global supply chain issues and energy price shocks,<ref>{{cite web |title=Consumer Price Index, December Quarter 2024 |url=https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}}</ref> falling to 3.6% by March 2024 and 2.4% by December 2024, within the Reserve Bank of Australia’s 2–3% target.<ref name="ABS CPI 2024">{{cite web |title=Consumer Price Index, December Quarter 2024 |url=https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}}</ref> However, core inflation remained at 3.5% in September 2024, with services inflation at 4.6%, indicating persistent domestic pressures.<ref>{{cite web |title=Australia: Staff Concluding Statement of the 2024 Article IV Mission |url=https://www.imf.org/en/News/Articles/2024/10/02/mcs-australia-staff-concluding-statement-of-the-2024-article-iv-mission |website=International Monetary Fund |date=2 October 2024 |access-date=2 April 2025}}</ref> Food prices rose 11.7% and gas 33.9% since 2022, outpacing wage growth of 3.5% annually,<ref>{{cite web |title=Factsheet: Inflation in Australia |url=https://www.aigroup.com.au/resourcecentre/research-economics/factsheets/factsheet-inflation-in-australia/ |website=Ai Group |date=31 January 2025 |access-date=2 April 2025}}</ref><ref>{{cite web |title=Wage Price Index, December 2024 |url=https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}}</ref> while energy rebates capped electricity rises at 2.0% instead of 14.9%.<ref>{{cite web |title=Government spending and inflation |url=https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/Budget/reviews/2024-25/governmentSpendingInflation |website=Parliament of Australia |date=29 May 2024 |access-date=2 April 2025}}</ref>

Labor’s migration policy adopted flexible targets, setting 190,000 places for 2023–2024 and 185,000 for 2024–2025, unlike the Coalition’s stricter caps,<ref>{{cite web |title=Migration Program planning levels |url=https://immi.homeaffairs.gov.au/what-we-do/migration-program-planning-levels |website=Home Affairs |access-date=2 April 2025}}</ref> with a four-year planning cycle from 2025–2026 based on recommendations.<ref>{{cite web |title=AUSTRALIA - Impact of the 2024-2025 Federal Budget on Migration Policy |url=https://newlandchase.com/australia-impact-of-the-2024-2025-federal-budget-on-migration-policy/ |website=Newland Chase |date=21 May 2024 |access-date=2 April 2025}}</ref> However, net overseas migration hit 446,000 in 2023–2024, exceeding the 395,000 forecast by 51,000, after peaking at 528,000 in 2022–2023,<ref>{{cite web |title=Overseas Migration, 2023-24 financial year |url=https://www.abs.gov.au/statistics/people/population/overseas-migration/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}}</ref><ref>{{cite web |title=Immigration – Budget Review 2024-25 |url=https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/Budget/reviews/2024-25/Immigration |website=Parliament of Australia |access-date=2 April 2025}}</ref> far above historical averages of 200,000–250,000. This “big Australia by stealth” was linked to six quarters of negative per capita GDP growth, with GDP per head down 0.3% in 2023–2024.<ref>{{cite web |title=ABS data confirms big Australia by stealth |url=https://ipa.org.au/publications-ipa/media-releases/abs-data-confirms-big-australia-by-stealth-migration-reduction-promise-shattered |website=Institute of Public Affairs |date=19 September 2024 |access-date=2 April 2025}}</ref><ref>{{cite web |title=National Accounts, December 2024 |url=https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}}</ref> The Productivity Commission highlighted strains on housing and infrastructure from this surge.<ref>{{Cite web |last=corporateName=Commonwealth Parliament; address=Parliament House |first=Canberra |title=Immigration |url=https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/Budget/reviews/2024-25/Immigration |access-date=2025-04-01 |website=www.aph.gov.au |language=en-AU}}</ref>

Housing affordability declined, with approvals at 89,734 in 2024, below the 21,000 monthly needed for Labor’s 1.2 million homes target by 2029, causing a 12,000-dwelling shortfall in January 2025.<ref>{{cite web |title=Australian housing is a misery machine |url=https://www.macrobusiness.com.au/2025/02/australian-housing-is-a-misery-machine/ |website=MacroBusiness |date=10 February 2025 |access-date=2 April 2025}}</ref><ref name="MacroBusiness 2025"/> According to the Housing Industry Association (HIA), Australia constructed approximately 180,000 homes in the previous year, falling well short of the 240,000 needed annually to meet demand. This suggests a yearly shortfall of about 60,000 homes, highlighting the severity of the housing crisis.<ref>{{Cite web |title=Budget must tackle barriers to housing supply |url=https://hia.com.au/our-industry/newsroom/industry-policy/2025/01/budget-must-tackle-barriers-to-housing-supply?srsltid=AfmBOooiq2LmSMRw9nx8nJwKRDhk-_gS9xobiOEL4GS7f6MaFiyybaT9 |access-date=2025-04-01 |website=hia.com.au |language=en}}</ref><ref>{{Cite web |last=March 2025 |first=Leith van OnselenMonday 31 |date=2025-03-31 |title=Why Australia has a housing crisis |url=https://www.macrobusiness.com.au/2025/03/why-australia-has-a-housing-crisis/ |access-date=2025-04-01 |website=MacroBusiness}}</ref> Alan Kohler attributed a 30–40% cost rise to taxes like GST and stamp duty, pricing a two-bedroom apartment at $1 million, unaffordable for median earners at $65,000.<ref>{{cite web |title=Alan Kohler: Housing affordability is largely a matter of tax reform |url=https://www.thenewdaily.com.au/finance/2024/10/28/alan-kohler-housing-affordability-tax-reform |website=The New Daily |date=28 October 2024 |access-date=2 April 2025}}</ref><ref>{{cite web |title=Personal Income in Australia, 2024 |url=https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/personal-income-australia/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}}</ref> He noted barriers like unionisation costs (up 40% since 2020) and NIMBYism, despite 59% of Sydney and 52% of Melbourne residents favouring denser housing.<ref name="MacroBusiness 2025">{{cite web |title=Why Australia has a housing crisis |url=https://www.macrobusiness.com.au/2025/03/why-australia-has-a-housing-crisis/ |website=MacroBusiness |date=31 March 2025 |access-date=2 April 2025}}</ref><ref>{{cite web |title=Setting Alan Kohler straight on housing policy |url=https://grattan.edu.au/news/setting-alan-kohler-straight-on-housing-policy/ |website=Grattan Institute |date=2 April 2024 |access-date=2 April 2025}}</ref> Rents rose 16.4% and housing costs 12.9% since 2022, driven by migration.<ref name="IMF 2024">{{cite web |title=Australia: Staff Concluding Statement of the 2024 Article IV Mission |url=https://www.imf.org/en/News/Articles/2024/10/02/mcs-australia-staff-concluding-statement-of-the-2024-article-iv-mission |website=International Monetary Fund |date=2 October 2024 |access-date=2 April 2025}}</ref>

Under Labor, Australian households experienced the sharpest decline in real disposable income of any country in the OECD. According to a comparative analysis of OECD data, real per capita household disposable income in Australia fell by 8.0% over the two years leading up to March 2024. This stands in marked contrast to the OECD average, which recorded a 2.6% increase over the same period.<ref name="afr.com">https://www.afr.com/policy/economy/how-australia-became-the-world-s-biggest-cost-of-living-loser-20241118-p5krgk#:~:text=Disposable%20income%20is%20even%20worse&text=On%20this%20measure%2C%20Australians%20have,cent%20higher%20across%20the%20OECD.</ref>

This performance positions Australia as an outlier among developed economies and has prompted growing concern over the government’s management of the cost-of-living crisis. While most OECD nations saw household incomes either stabilise or rise, supported by targeted fiscal interventions and effective inflation control, Australian households endured a sustained erosion of purchasing power.<ref>https://www.macrobusiness.com.au/2024/12/australians-suffer-world-record-income-collapse/</ref>

The severity of this decline cannot be attributed to global forces alone. Analysts have pointed to domestic policy settings—ranging from taxation and income support to housing affordability and wage policy—as compounding factors under Labor's administration.<ref>https://www.macrobusiness.com.au/2024/09/australian-households-suffer-lost-decade/</ref>

The fall in real incomes coincided with heightened inflationary pressures, elevated interest rates, and a housing market that remains inaccessible for many. The result has been a tangible reduction in living standards, particularly for middle- and low-income earners, with stagnant wages failing to keep pace with rising costs. Critics argue that the government’s fiscal strategy has lacked the responsiveness seen in peer nations, leading to Australia’s unique position as the OECD’s worst performer on this key economic indicator.<ref name="afr.com"/>