The Albanese Government is defending its cost of living handouts, including tax cuts for all taxpayers which come into effect today, against fears they will fuel inflation and lead to higher interest rates. Source: news.com.au.
Prime Minister Anthony Albanese and Treasurer Jim Chalmers yesterday were both spruiking the stage 3 tax cuts and other measures, including the $300 energy rebate and pay rise for low-income workers, denying they would overstimulate the economy.
Mr Albanese, during a visit to an Indian sweet factory in Melbourne, said the Government was doing what it could to bring inflation down while helping Australians.
He said the Sweet Magic factory was an appropriate place to talk about the Government’s economic plans “because our objective is to hit the sweet spot.”
“Tomorrow will be a big day – 2.6 million people on award wages will get a wage increase, as well, 13.6 million Australian taxpayers will get a tax cut.”
Fears that the RBA would raise rates from 4.35 per cent, the highest its been since late 2020, rose after the CPI indicator for the month of May hit 4 per cent.
Dr Chalmers said he expected inflation would be tamed, despite the May figure and the March quarter figure of 3.6 per cent – above the RBA’s target of between 2 and 3 per cent.
Shadow Treasurer Angus Taylor laid the blame for inflation at the feet of the Government.
“The Albanese Labor Government has completely failed to address the source of Australia’s cost of living crisis – inflation,” Mr Taylor said in a statement.
Dr Chalmers acknowledged many households were “under the pump” because of higher cost of living pressures and interest rates, but he said he expected the Government’s policies to be “helpful in the fight against inflation”.
FULL STORY
Treasurer Jim Chalmers says he’s confident inflation will be tamed (By Joanne Williamson, news.com.au)
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