This final report examines the pressures facing Australians, the Labor Government's policy response and potential measures to ease the cost of living. It finds a growing crisis that is compounded by inflation, excessive public expenditure and poor conduct in the grocery and construction industries and makes nine recommendations with significant implications for policy. 

Key findings

• The cost of living crisis is worsening, with an increasing number of Australians experiencing financial distress.
• Real wages are not growing and have deteriorated due to high inflation. 
• A parallel crisis in housing availability and affordability is putting further pressure on Australians.
• The cost of living crisis disproportionately affects vulnerable groups, including low-income families, young people, and people with disabilities.

Recommendations

1. Address excessive public expenditure by all levels of government that is keeping inflation higher for longer.
2. Develop productivity-enhancing reforms for the economy, including establishing a national deregulation agenda.
3. The Australian Government should note the findings of the First Interim Report and accept in full all of the committee's recommendations made in the Second Interim Report.
4. Introduce divestiture powers to manage poor supermarket behaviour and address price-gouging.
5. Reinstate the Australian Building and Construction Commission to address lawlessness in the Construction, Forestry and Maritime Employees Union and reduce the cost of building new homes for Australians.
6. Legislate to ensure registered organisations work for their members and not themselves, including giving Courts the power to disqualify officials of registered organisations that do not act in the interest of member.
7. Ensure that Commonwealth funding for state and territory infrastructure projects is not attached to projects with procurement arrangements that preference particular unions, driving up the cost of construction.
8. Support the passage of the Tax Laws Amendment (Incentivising Food Donations to Charitable Organisations) Bill 2024.
9. Increase the instant asset write-off threshold for small businesses to $30,000 and make it a permanent feature of Australia's taxation system.