Australians can expect “significant” relief in the cost of living in the upcoming federal budget, with Treasurer Jim Chalmers emphasizing that it will not contribute to inflation concerns.
In his third budget, set to be announced on Tuesday, Chalmers aims to strike a balance between alleviating the pressure of rising prices and addressing the impact of inflation.
While the $107 billion (US$70 billion) relief from changes to stage three tax cuts has already been implemented to take effect from July, Chalmers stated that additional measures will complement the tax plan.
Speaking to Sky News, he said, “The cost-of-living relief in this budget will be substantial and different from what we’ve seen before, but it will be in addition to the tax cut for every taxpayer.”
Although inflation has slightly decreased since the last budget, the Reserve Bank anticipates that it will not return to the target range of two to three percent until mid-2026, based on its latest projections.
Related Stories
Inflation for the year ending in March was recorded at 3.6 percent.
Chalmers mentioned to ABC TV, “We anticipate that the budget will exert downward pressure on inflation rather than upward pressure. In every budget, we revise all forecasts.”
He added, “Forecasting the economy in these uncertain times is challenging, but people should anticipate that one of the outcomes of our budget is lower inflation rather than higher.”
Shadow Treasurer Angus Taylor emphasized that addressing domestic inflation should be the primary focus of the budget.
He stated on ABC’s Insiders program, “If the budget falls short again, Australians will bear a significant cost. The government needs to be cautious in spending and ensure that economic growth outpaces spending, which is contrary to what we’ve seen in the past two years.”
Chalmers confirmed that there are no plans to reduce the petrol excise despite the increase in fuel prices.
He explained, “We have found a more effective way to provide cost-of-living relief rather than adjusting petrol prices, which have been volatile and may become even more volatile due to events and tensions in the Middle East.”
The budget will also allocate $8.5 billion towards health, with $3 billion aimed at strengthening the Medicare system.
An additional $227 million will be allocated to establish 29 new urgent care clinics nationwide, with additional funding for clinics in regional and remote areas of Australia.
Chalmers mentioned, “These urgent care clinics have been highly successful, especially for families seeking healthcare for children outside regular hours. We want to expand on the existing clinics to address the significant out-of-pocket healthcare costs and alleviate these pressures where possible.”
Opposition finance spokeswoman Jane Hume stressed the importance of delivering cost-of-living relief in the budget.
She stated on Sky News, “Australians are feeling the financial strain, and we cannot afford another budget misstep. Unless Jim Chalmers presents a budget on Tuesday that reinstates the fiscal discipline seen in previous coalition and Labor budgets, then this government will have failed in its responsibilities.”
Can you please rewrite this sentence?
Source link
