With petrol prices now set to increase by 25 cents a litre following the expiry of the Coalition's six-month fuel excise holiday, the Reserve Bank expected to increase interest rates by another 50 basis points on Tuesday, and disappointing July CPI figures, life for millions of households will get a lot harder before it gets better.
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As a result of the soaring inflation rate, the interest rate rises that are also being passed on to renters, and the escalation in the price of fuel, most families are having to spend hundreds of dollars a week more to cover basic needs such as food, shelter and transport than they were this time last year.
This is one of the reasons why the Treasurer Dr Jim Chalmers's reference to cost-of-living relief in the budget he is due to hand down later this month during his Wednesday press conference was intriguing. This is, after all, the Treasurer who used to criticise the former government for doing too little too late, and who repeatedly called for JobKeeper and the increased JobSeeker payment to be extended regardless of the cost.
He has, since taking over from Josh Frydenberg, repeatedly ruled out extending the fuel excise holiday or implementing any form of cost-of-living relief that would make the Reserve Bank's task of slowing down the rate of inflation any harder. And, despite the fact the ALP voted in favour of the previous government's costly - but necessary - pandemic measures, his default position when asked about economic policy is to talk about "the Coalition's trillion dollars of debt".
While Dr Chalmers was happy to promise "a pretty solid budget focused on cost-of-living relief with an economic dividend" on Wednesday, he has given no indication that this will go beyond changes to childcare and TAFE fees, and a reduction in the cost of PBS medications, that were all announced a long time ago.
The message remains that people are just going to have to keep calm and carry on regardless of whether or not they have the wherewithal to do so.
"We can't afford to fund every bit of cost-of-living relief indefinitely that people would like us to - that's just the reality of the situation," he said.
This ignores the fact that those fortunate enough to have savings are now having to dip into them, and that those who do not are either having to fall back on credit or just do without.
While, on the one hand, the Treasurer's austere approach is understandable - and even commendable, it has created a situation where those with the least are being asked to sacrifice the most to help to rectify a looming financial crisis not of their making.
But the better than expected financial position spelled out in Wednesday's final budget outcome does provide some wiggle room that may well find its way into the up-coming budget. It provides some breathing space despite the continued four years it's estimated it will take to get back into the black.
While many in an affluent community such as Canberra do have the luxury of rolling with punches and, thanks to savings accrued during the COVID years, have a buffer, that is not universally the case.
And, while it is true that Australian fuel prices are still relatively low when compared to much of the developed world, that is cold comfort to the millions of people in regional Australia who drive long distances to access even the most basic services, and to go to work.
While nobody wants to see a return to the "middle class" welfare which saw cash payments to the well-to-do during the GFC and at the start of the pandemic, there is more the government could be doing to extend a helping hand to those who most need it without blowing a hole in the budget.
