Australia’s Economic Priorities: Households vs. Big Business

As Australia approaches the next federal election, economic policies are once again at the centre of public debate. While the Albanese government has pursued a balance of cost-of-living relief and investment in public services, the Liberal-National Coalition has remained ambiguous about whether they would continue support for households.

Bridget McKenzie’s recent reluctance to confirm an LNP government would maintain the electricity subsidy for consumers is a striking example of this approach. Yet, as history shows, the LNP has had no hesitation in maintaining generous subsidies for corporations—especially in the fossil fuel sector. So, as voters weigh up their options, the question arises: Who really benefits from each party’s economic policies?

Labor’s Economic Approach: Balancing Support with Investment

Since taking office, the Albanese government has implemented a series of cost-of-living measures, including:

• Electricity bill relief for households, designed to help offset inflationary pressures.
• Expanded Medicare coverage, easing the financial burden of healthcare.
• Targeted wage growth policies, particularly in sectors that had lagged under previous administrations.
• Investment in renewable energy aims to future-proof Australia’s economy while reducing dependency on fossil fuel subsidies.

The Reserve Bank of Australia (RBA) recently lowered interest rates, citing Labor’s responsible fiscal management and economic stabilisation efforts. The budget, while not in surplus, is on track to shrink deficits without drastic cuts to public services.

The LNP’s Track Record: Corporate Welfare Over Household Support

Despite branding themselves as ‘strong economic managers,’ the Coalition’s fiscal policies have historically favoured corporate subsidies and tax cuts for big business. Under the Morrison government, Australia saw:

• Record-high fossil fuel subsidies, with billions in taxpayer dollars funnelled into coal, gas, and mining interests.
• Low wage growth, as policies prioritised corporate profit margins over income increases for workers.
• Public service cuts, removing thousands of jobs while outsourcing government functions to private firms.
• The infamous ‘Back in Black’ surplus promise never materialised despite significant cuts to public spending.

Bridget McKenzie’s refusal to confirm whether the LNP would maintain electricity subsidies for households follows this trend. Instead of committing to direct consumer support, the Coalition appears poised to continue prioritising corporate tax breaks and subsidies—policies that have historically widened wealth inequality.

A Tale of Two Subsidies: Households vs. Corporations

The contrast between the two parties is most apparent in their approach to subsidies. While Labor’s subsidies have been aimed at easing cost-of-living pressures for families, the Coalition’s approach has long centred on corporate welfare.

• Electricity Bill Relief – Labor has committed to maintaining support for households, helping reduce costs during an inflationary period.
• Fossil Fuel Industry Subsidies – The LNP has consistently directed billions to coal and gas projects, ensuring corporate interests remain protected even as global markets shift towards renewables.
• Public Service vs. Outsourcing – Labor has invested in rebuilding public services, while the LNP has a history of reducing government jobs in favour of private contractors.

The Election Choice: Who Benefits?

With the federal election approaching, Australians are faced with a clear economic choice:

• A Labor government that invests in cost-of-living relief, public services, and renewable energy.
• A Coalition government that prioritises corporate subsidies, tax cuts for businesses, and public service reductions.

While both parties claim to be responsible economic stewards, the historical context tells a different story. The question voters must ask is simple: Should taxpayer dollars be used to support households, or should they continue subsidising lunch for big business?

Source List:
Reserve Bank of Australia – https://www.rba.gov.au/media-releases/2025/mr-25-03.html
Australian Bureau of Statistics – https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release
Australian Treasury – https://treasury.gov.au/media-release/budget-2024-25
ABC News – https://www.abc.net.au/news/
The Guardian Australia – https://www.theguardian.com/au
Australian Financial Review – https://www.afr.com/