Finance Minister Katy Gallagher emphasized the importance of making the right decisions at the right time. She stated, “Our focus is on making the right decisions for the right time.”
Shadow Treasurer Angus Taylor expressed disappointment over the decrease in the standard of living for Australians, citing a more than 9 percent decline since Labor came into power. This was in response to the low GDP numbers, with the Australian economy growing by only 0.2 percent in the June quarter, its worst performance since the 1991 recession. Taylor pointed out that the economy had been declining for six consecutive quarters.
In contrast, Minister for Finance Katy Gallagher dismissed these comments as political commentary and reiterated the government’s focus on making informed decisions. She defended the increase in government spending as a key driver of growth, a stance that was sharply criticized by the opposition.
Shadow Treasurer Angus Taylor argued that simply increasing spending would lead to inflation and that the cost-of-living crisis cannot be solved by throwing money at it. Gallagher defended Labor’s decisions on cost-of-living support in the last budget, highlighting the stark contrast with the opposition’s proposed budget cuts.
Different Tools
Treasurer Jim Chalmers faced criticism for his remarks about the Reserve Bank of Australia impacting the economy with interest rate hikes. Gallagher supported Chalmers, emphasizing the bank’s role in controlling inflation. Taylor pointed out that the government has various tools at its disposal to stimulate the economy, such as productivity policies, industrial relations, immigration, and energy policies.
Taylor criticized the government for not effectively utilizing these tools, leading to a challenging situation for households. He highlighted the stagnant core inflation and the lack of interest rate cuts compared to other countries facing similar challenges. With GDP per capita decreasing for 18 months, Taylor stressed the need for effective solutions rather than simply injecting money into the economy.
The Australian Bureau of Statistics released figures showing weak GDP performance, with a decline in household spending and a year-on-year GDP growth of 1 percent.
