Cup of Coffee Tax Cut?

Hi Scott,

I’m a mum of two toddlers and watched the Budget hoping for something meaningful. The tax cuts are fine, but $5 a week won’t stretch far with the way groceries and rent are going. The Treasurer says we’ve turned a corner economically – is that really the case, or just pre-election spin? I’m trying to make good decisions for our family, but it’s hard to know what to believe. Would love your take.

Narelle

Hi Narelle,

There was nothing meaningful in the Budget.

The main takeaway? 

Don’t look to the government for help – they’ve got enough problems of their own.

Yet, as you’re a mum of two toddlers, let’s talk about your occupational drug of choice: 

Coffee.

I’m writing this in a café, newspapers spread out, reading headlines like:

“Labor’s ‘top-up’ tax cut is enough for a coffee – and a brazen pitch for votes.”

Bulldust!

I just paid $6 for a macchiato.

(Yes, my coffee order sounds very … Melbourne. But my doctor says I need to ease off the cappuccinos – something about my belly turning into a buddha.)

Six bucks for a watery espresso with a tablespoon of froth! 

So, no, the tax cut’s not even covering your caffeine. And I doubt voters will give a frappuccino about it either – especially with the average price of a coffee tipped to hit $7 within six months.

Why?

Three reasons:

Wholesale bean prices have doubled in the past year.

Café rents and power bills are skyrocketing.

And high staff costs. Sunday rates mean your man-bun barista is on $39/hour (and even then the poor bloke still can’t afford his rent!).

And that’s why it’s been a brutal year for your local café, Narelle.

Higher prices mean more people will bring it from home, grab a servo brew … or skip it altogether.

And that is why nearly one in 11 hospitality businesses have shut shop in the last 12 months.

So, Narelle, has the economy turned the corner?

Not if the price of coffee is anything to go by. It’s a frothy little sign that things are still running hot!

Scott.