The leading issue in the election battle is the cost-of-living squeeze. The political parties are all offering handouts so they are seen to be providing relief.

Offers include minor tax cuts, a temporary petrol excise cut, incentives for more doctors to bulk bill (Medicare pays), power bill and battery subsidies, rent caps, and so on.

Nearly all these are short-term gifts or bribes to win votes that must be paid for by us, the taxpayers. None will help resolve the cost-of-living crisis permanently. No politician is trying to actually fix the problem.

To solve a problem we must first understand its causes. There are several. We had a period of high inflation, rapidly rising prices, due to the government spending necessary during Covid, not being wound back soon enough. More cash chasing the same amount of goods means rising prices.

High interest rates are bringing inflation down, but we need to get it lower. High rates mean high mortgage payments, but we must continue with them. The Government wants the RBA to cut rates faster. That isn’t the answer. We must accept pain a while longer to achieve stable prices and rates long-term.

Renters face high rents and property shortages. If their rent is half their income they can’t afford other things. Rent caps will cause investors to sell, reducing supply. We must boost supply, build more houses, urgently. Slow approvals is the biggest impediment. No-one is offering to speed them up.

Another cause of the cost squeeze is falling productivity, output per worker per year. The Productivity Commission says it has been declining for five years, beginning with working-from-home during Covid. Statistics show productivity is lower while working from home.

We need to return to the workplace and boost output. While productivity has fallen, many wages have risen more than inflation due to Fair Work Commission awards and negotiated agreements. Lower output and higher wages can only mean more inflation, more cost-of-living pressure.

The inflation driven wage rises have pushed people into higher tax brackets. They now pay a greater proportion of their income in tax. Small tax cuts won’t fix that. Indexation of the tax brackets to the CPI would.

Companies are being handicapped by more legislation favouring unions – forced industry wide bargaining and reduced hiring flexibility. Rules reducing casual and contract work mean fewer jobs and people employed, less company output and lower productivity.

None of the major parties or leading candidates are offering anything to actually solve the cost-of-living crisis. That’s depressing.