When Labor took office in May 2022, Australians faced a cost-of-living crisis driven by 6.1% inflation and five consecutive quarters of falling real wages under the Coalition. The government responded with targeted measures addressing immediate pressures whilst supporting sustainable wage growth and economic stability.

Supermarket competition received unprecedented reform through mandatory regulation from April 2025. The Food and Grocery Code now carries penalties up to $10 million, three times the benefit gained, or 10% of annual turnover for breaches. From July 2026, major retailers will be banned from charging excessive prices compared to supply costs plus reasonable margins. The ACCC received over $30 million in additional funding to enforce these protections, whilst anonymous complaints pathways protect suppliers from retribution. Choice quarterly surveys show persistent price gaps between retailers, with Aldi's basket costing $72.41 compared to Woolworths at $98.98, Coles at $100.04, and IGA at $109.25 in September 2025.

Energy bill relief delivered $300 annually to households through automatic $75 quarterly credits from July 2024, with small businesses receiving $325. The Solar Sharer scheme, launching July 2026 in NSW, South-East Queensland and South Australia, provides three hours of free electricity daily during peak solar generation. Australia's 4.16 million solar installations generate 41.8 GW capacity, with rooftop solar alone (26.8 GW) exceeding remaining coal-fired generation. Smart meters enable households to shift energy-intensive activities to midday periods when wholesale prices frequently drop to zero or negative.

Medicine costs received the largest reduction in PBS history. The maximum script price dropped from $42.50 to $30 in January 2023, with 60-day prescriptions introduced September 2023 enabling double quantities for the same price. Prescription costs remain frozen at $31.60 for general patients and $7.70 for pensioners until 2029. These reforms delivered $1.1 billion in total savings, with 66 million prescriptions issued free after patients reached the lower Safety Net threshold. A 2025 election commitment promises further reduction to $25 maximum per script, representing a 20% additional cut saving $200 million annually.

Housing support expanded through multiple channels. The Home Guarantee Scheme removed all place limits and income caps from October 2025, with property price caps substantially increased: Sydney from $900,000 to $1.5 million, Melbourne from $800,000 to $950,000, Brisbane from $700,000 to $1 million. The 5% deposit requirement with government guarantees of 15% enables buyers to avoid Lenders Mortgage Insurance, with over 180,000 buyers assisted since 2022. Commonwealth Rent Assistance increased 45% since May 2022 through consecutive rises including 15% in September 2023 and 10% plus indexation subsequently, benefiting nearly one million households. The School Student Broadband Initiative received $4.9 million extension, providing free NBN connections to 30,000 eligible families until June 2028, saving approximately $1,000 annually per household.

Student debt relief delivered $3 billion through indexation reforms ensuring debt can't grow faster than wages, reducing 2023 indexation from 7.1% to 3.2%. A 2025 election commitment promises 20% cuts to all student loans, wiping approximately $16 billion affecting over three million Australians, with average reductions of $5,520. The minimum repayment threshold would increase from $54,000 to $67,000, saving someone earning $70,000 around $1,300 annually. Combined reforms total close to $20 billion in student debt relief.

Tax reform delivered cuts from July 2024, with the 19% rate dropping to 16% for incomes between $18,200 and $45,000, and the 32.5% rate reducing to 30% for incomes to $135,000. A person earning $40,000 receives $654 annually, whilst someone on $75,000 gets $1,554. All 6.5 million women taxpayers received cuts averaging $1,650. The Medicare levy low-income threshold increased, benefiting over one million Australians.

Childcare subsidies increased in July 2023, setting maximum subsidy to 90% for families earning $80,000 or less. A family earning $120,000 saved approximately $2,768 annually. The Three Day Guarantee, legislated for January 2026, removes the activity test for the first three days of care, guaranteeing 72 hours of subsidised care per fortnight regardless of work requirements. The $426.7 million reform benefits approximately 66,700 families initially, with over 100,000 eligible for additional hours.

Paid Parental Leave expanded from 20 to 26 weeks by 2026, with two additional weeks added annually. From July 2024, parents receive 22 weeks, growing to around $24,000 per child by 2026. Four weeks are reserved for each parent on a "use it or lose it" basis encouraging equal parenting. From July 2025, parents receive superannuation at 12% on Paid Parental Leave payments, addressing the gender retirement savings gap. The reforms benefit around 180,000 families annually through $1.2 billion investment.

Wage growth reversed Coalition-era decline. Real wages grew for eight consecutive quarters as of September 2025, the longest period in almost a decade, following five quarters of decline before the 2022 election. The Wage Price Index grew 3.4% annually to September 2025, with real wages up 0.2%. Average annualised nominal wages grew at 3.7% under Labor compared to 2.2% under the Coalition. Minimum wage earners now receive over $175 per week more than when Labor took office, with three consecutive Fair Work Commission increases of 5.2% (2022), 8.6% (2023), and 3.75% (2024) supported by government advocacy. The National Minimum Wage reached $24.10 per hour from July 2024, up from $20.33 in May 2022, benefiting 2.6 million workers on minimum and award wages.

Early childhood educators received a legislated 15% wage increase over two years through $3.6 billion investment: 10% from December 2024 and 5% from December 2025. Typical educators gain at least $103 weekly initially rising to $155, whilst early childhood teachers receive $166 rising to $249. Fee controls limit increases to 4.4% over 12 months from August 2024 and 4.2% the following year for services accessing the funding.

Superannuation reforms announced October 2025 increase the Low Income Superannuation Tax Offset from $500 to $810 from July 2027, with eligibility rising from $37,000 to $45,000 income, benefiting 1.3 million Australians (60% women). A two-tier tax system from July 2026 applies 30% to earnings on balances between $3 million and $10 million, and 40% over $10 million, with both thresholds indexed. Tax applies only to realised earnings, affecting less than 0.5% of Australians.

Social support expanded through multiple measures. The Single Parenting Payment age cut-off increased from 8 to 14 years through $1.9 billion investment, supporting 57,000 single parents including 52,000 women. JobSeeker payment rose 21% since May 2022, delivering an additional $135 per fortnight for single recipients, with expanded eligibility for the higher rate to single recipients aged 55 and over on income support for nine or more months. The National Tax Clinic program assisted a record 6,533 vulnerable individuals and small businesses in 2024, a 24% increase from 2023, completing 7,909 lodgements with five new clinics opening January 2025.

Economic management delivered results. Headline inflation fell to 2.4% by December 2024, down from 6.1% inherited from the Coalition, placing it within the RBA's 2-3% target band. Underlying inflation reached 3.2%, its lowest level in three years, with six-month annualised underlying inflation at 2.7%. Government cost-of-living measures reduced inflation by approximately 0.75 percentage points. Australia's inflation rate now sits lower than the United States, United Kingdom and Germany. The economy created 1.2 million jobs under Labor, the strongest employment growth among major advanced economies, with four out of five jobs in the private sector.

Key outcomes:

• Inflation fell to 2.4% (December 2024) within RBA target band, down from 6.1% inherited from Coalition, whilst creating 1.2 million jobs

• Mandatory supermarket code from April 2025 with penalties up to $10 million or 10% turnover, price gouging banned from July 2026

• PBS maximum script price cut from $42.50 to $30, with $1.1 billion total savings and 66 million free prescriptions through Safety Net threshold

• Real wages grew for eight consecutive quarters to September 2025, longest period in almost a decade, with minimum wage up $175 per week

• Home Guarantee Scheme unlimited from October 2025, Sydney cap increased to $1.5 million, over 180,000 buyers assisted since 2022