Cost of living crisis: grocery prices, energy bills, and what policy can actually do
By Direct Democracy
Every week, millions of Australians face the same frustrating reality: watching their grocery bills creep higher while their wages stay flat, opening energy bills that seem to defy logic, and wondering why politicians who earn $217,060 a year think they understand the pressure of choosing between heating and eating.
The numbers tell a stark story. Grocery prices have increased by 8.4% over the past year, with essentials like bread up 12% and dairy products rising 15%. Meanwhile, electricity prices have jumped 23% since 2023, and the average Australian household now spends $2,400 annually more on basic necessities than they did three years ago.
But here's what's really frustrating: we're not short of policy solutions. We're short of politicians willing to implement the ones that actually work.
The grocery duopoly problem
When two companies control 65% of the grocery market, competition dies and prices soar. Coles and Woolworths have posted record profits while families skip meals. The ACCC's recent investigation found evidence of coordinated pricing strategies and supplier intimidation that would make any small business owner's blood boil.
Effective policy responses exist: - Mandatory divestiture powers for the ACCC when market concentration exceeds 40% in essential goods - Price transparency requirements forcing retailers to publish wholesale vs retail margins - Independent supplier ombudsman with real enforcement teeth - Planning law reforms to break up retail monopolies in new developments
Yet traditional parties offer only toothless inquiries and voluntary codes of conduct. Why? Because $2.1 million in political donations from major retailers over the past five years tends to soften parliamentary resolve.
Energy: the regulated market that isn't
Australia has some of the world's most abundant energy resources, yet we pay some of the highest electricity prices globally. Our "competitive" energy market has 22 retailers in some areas, creating an illusion of choice while prices march steadily upward.
The core problem isn't competition -it's market design. When essential infrastructure is treated as a profit centre rather than a public service, consumers always lose. States like South Australia have shown what's possible: their publicly-owned renewable energy investments have driven down wholesale prices by 31% since 2019.
Policy solutions that work: - Public ownership of essential energy infrastructure - Regulated pricing for household electricity (like water and sewerage) - Mandatory renewable energy storage requirements for new developments - Feed-in tariff guarantees that actually reflect the value households provide to the grid
Housing: the elephant crushing the room
No discussion of cost of living is complete without addressing the $800 billion elephant in the room: housing costs that consume 35-50% of household income for millions of Australians.
Negative gearing and capital gains tax concessions cost the budget $11.7 billion annually -enough to build 58,000 social housing units every year. Instead, these policies inflate property prices and turn housing into a speculative commodity rather than a human right.
The May 2026 budget's minor tweaks to capital gains indexation don't address the fundamental problem: tax policy that rewards speculation over productivity.
Why direct democracy matters here
Here's where traditional politics fails spectacularly. When 78% of federal parliamentarians own investment properties compared to 24% of the general population, guess whose interests get protected?
Polling consistently shows Australians support: - 72% favour stronger action against grocery price manipulation - 65% support public ownership of essential energy infrastructure - 58% want negative gearing limited to new housing construction
Yet parliaments dominated by landlords and corporate donors deliver policies that protect existing wealth rather than address cost of living pressures.
Direct democracy changes this dynamic fundamentally. When party members vote directly on policy, there's no filter of political donations, no distortion from personal financial interests, no backroom deals with industry lobbyists.
Our members have consistently voted for policies that prioritise: - Essential services over corporate profits - Long-term affordability over short-term political convenience - Evidence-based solutions over ideological posturing
The path forward
The cost of living crisis isn't inevitable -it's the predictable result of policy choices that prioritise wealth concentration over broad prosperity. We know what works because we can see it in action: public ownership driving down energy costs, competition policy reducing grocery prices, and housing policy that treats homes as places to live rather than investment vehicles.
What we need is the political will to implement these solutions. That requires representatives who answer to voters rather than donors, and democracy that reflects the actual priorities of ordinary Australians.
Ready to vote on real solutions? Take our policy quiz to see how your priorities align with our member-driven platform, and join the thousands of Australians building a democracy that actually works for working people.