Why Australia’s High-Spending Premiers Are Getting Away with Breaking the Bank Amid Soaring Cost of Living Anxiety
- Despite record infrastructure pipelines, swelling public sector wage bills, and rapidly rising debt, premiers are enjoying approval ratings their federal counterparts can only envy.
- The nation’s inflation woes, which have already resulted in one rate hike this year, are partly due to spending beyond the control of the Commonwealth.
- Premiers are using their strong communication skills and “straight talking” with the public to deflect criticism and maintain their popularity.
Australians are feeling the pinch of rising grocery bills, petrol prices, and mortgage repayments, yet the premiers presiding over the nation’s spending spree are enjoying unprecedented popularity. While the Albanese government is under pressure to address the cost of living anxiety, state leaders are reaping the political rewards of their spending.
Queensland Premier David Crisafulli’s recent National Press Club address was a masterclass in confidence and charm, as he pitched his state as a destination for investment, jobs, and opportunity. His enthusiasm and ease were in stark contrast to federal leaders, who tend to get bogged down in tedious speeches and non-answers.
Crisafulli’s restraint in avoiding controversy and refusing to offer advice to his federal counterparts was a calculated move, and one that paid off. He, along with other premiers, is enjoying the political benefits of their spending, while federal leaders shoulder the blame for inflation discontent.
Analysis: What This Means for Australia
The popularity of premiers like Crisafulli, Victorian Premier Jacinta Allan, Western Australian Premier Roger Cook, and South Australian Premier Peter Malinauskas is no accident. They have mastered the art of “straight talking” with the public, tackling controversies head-on, and deflecting criticism to external enemies – frequently the federal government. Their narrow brief, focusing on hospitals, schools, and roads, has produced political durability.
Security analysts say that the clarity of mandate and tangible delivery of state governments are key factors in their popularity. By delivering on infrastructure projects and services, premiers are able to maintain a sense of control and accountability, even as the cost of living soars.
Law enforcement insiders warn that the lack of transparency and accountability in state spending is a growing concern. With net debt in Victoria forecast to reach almost $200 billion by 2028-29, and total net debt held by the states, territories, and federal government reaching $1.1 trillion next financial year, the economic risks are mounting.
Industry observers believe that the Albanese government’s reluctance to rebuke state counterparts is a missed opportunity to address the root causes of inflation. By acknowledging the role of state spending in the nation’s economic woes, the federal government could begin to shift the focus away from Canberra and onto the state cabinets where key decisions are being made.
Until then, premiers will continue to enjoy the political rewards of their spending, while federal leaders shoulder the blame for inflation discontent. As the nation teeters on the edge of another rate hike, one thing is clear: the cost of living crisis is a complex problem that requires a nuanced approach and a willingness to tackle the hard questions – not just shift the blame.