Treasurer Jim Chalmers says Treasury will continue preparing for a March 25 Budget despite suggestions Prime Minister Anthony Albanese could call an election to capitalise on the Reserve Bank’s first rate cut in four years. Source: News.com.au.
Although Mr Chalmers heralded the RBA’s decision to cut the official cash rate by 25 basis points to 4.1 per cent as the “rate relief Australians need and deserve”, he declined to say whether it would affect when Australians would go to the polls.
While a federal Budget is slated for March 25, with deficits forecast over the forward estimates, the Government can avoid handing down the Budget if the Prime Minister calls the election before that date.
Mr Albanese, in four separate interviews yesterday, stuck to his lines and refused to give any hint if the March 25 Budget would be scrapped for an election.
Mr Chalmers said work on was ongoing for a March 25 Budget.
“We acknowledge the timing of the election is a matter for the Prime Minister, in consultation with his senior colleagues but we’re working towards that Budget,” Mr Chalmers said.
Mr Albanese also declined to commit to handing down a Budget, stating the government was “preparing for a Budget, and indeed the election”.
“The election will be on May 17 or beforehand,” he told 2GB.
Tuesday’s rate drop will give a household with an average mortgage of about $640,000 a payment reduction of about $100 a month or $1200 a year.
Families with a mortgage of $1 million will receive $159 in savings, or $1913 a year.
Mr Chalmers said yesterday’s announcement was “very welcome news for millions of Australians” but acknowledged households were still struggling.
RBA governor Michele Bullock also moved to lower expectations of further rate cuts soon, with the board set to hand down its next update on April 1.
Shadow Treasurer Angus Taylor said the rate cut “has been a long time coming” and accused the Government of prolonging inflation.
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Jim Chalmers welcomes RBA’s first rate cut in four years, mum on affect on election date (By Jessica Wang, News.com.au)
