9 things government can do to reduce your living costs

In health, we spend proportionately around 50 percent more than countries with similar health outcomes like Israel and Singapore. We've got a generally good health system, but it could be better and cheaper.

Taking these steps would also increase productivity, and therefore reduce upward price pressure.

3. Reform Taxation

Delivering the Stage 3 tax cuts should absolutely happen. This is part of downsizing the government and putting resources in the hands of those who will use them most efficiently.

There is also a list of more radical reforms that should be implemented to raise the productivity of business.

Australia's productivity has been dropping partly because business has not been investing in productive capacity, and most investment in the economy actually comes from companies.

One easy way to boost investment is to allow businesses to accelerate the rate at which they write off assets.

Fast-growing companies are always chronically short of capital, and we exacerbate this by taxing them even when they are not cashflow positive.

Accelerated depreciation helps with this, and while it temporarily decreases government tax revenue, over the long run it should increase it as greater wealth is generated.

They could also look at abolishing company tax altogether and taxing profits entirely in the hands of shareholders.

They should also look at abolishing Capital Gains Tax (a tax that only came into being in 1985).

It is part of the reason there is a shortage of rental properties at the moment, which is increasing living costs for the 31 percent of Australians who rent. Once a homeowner doesn't pay capital gains tax, they have a big advantage over investors when it comes to purchasing a house.