Treasurer Jim Chalmers says there won’t be too many surprises in next week’s budget. Photo: File, supplied.
Treasurer Jim Chalmers has forecast a ‘soft landing’ federal budget next week with few surprises but one that centres on easing cost-of-living pressures.
However, shadow treasurer Angus Taylor says the Treasurer’s budget preview gives Australians little hope that there will be any solutions to the cost-of-living crisis or rising tax burdens.
In a pre-budget speech delivered this week, Dr Chalmers said despite a difficult three years and against a backdrop of unprecedented international uncertainty, the Australian economy has turned a corner with positive momentum building.
“We know people are still doing it tough, and that’s why cost of living continues to be our major focus,” he said.
“But consider what we’ve achieved together. Inflation is a third of its peak and is now in the lower half of the band.
“The lowest average unemployment rate for any government in 50 years. Stronger employment growth than any major advanced economy.
“Four in every 5 of the 1.1 million jobs created this term, in the private sector.
“More jobs created in the market sector than any first‑term government on record.”
The Treasurer said progress has been “deliberate, not accidental” and is the dividend of the economic strategy Labor has pursued for three years – guided by the principles of relief, repair and reform.
“We said from the outset we would rather a soft landing in our economy than cleaning up after a hard one,” he said.
“And thanks to that strategy, a soft landing is looking more and more likely. This is the foundation and the momentum we will build the budget on.
“It will be a responsible budget, which helps with the cost of living, builds our future and makes our economy more resilient in this new world of global uncertainty.”
Tuesday’s Federal Budget will centre on five major priorities: supporting the recovery and rebuilding from Cyclone Alfred; helping with the cost of living; strengthening Medicare and funding more urgent care clinics; investing in every stage of education; and making the economy more competitive.
Most of the big initiatives under those headings have already been announced, which the Treasurer admitted was more than the government would typically unveil before the actual delivery of the budget.
Being so close to an election is the main reason for that, including the fact the government wasn’t really planning on delivering this budget before the election anyway (not that the Treasurer admitted to that).
There will also be provisions in the budget for policies Labor will announce in the campaign, not next week when the budget is handed down.
Shadow Treasurer Angus Taylor campaigning in Melbourne this week. He says there’s nothing soft about Labor’s budget landing. Photo: Facebook.
The shadow treasurer, however, suggested that was no surprise.
“This is a Treasurer who spins statistics, but his priorities are defending his own record instead of delivering for Australian families, small businesses and aspiring first homeowners,” Mr Taylor said in reference to the Treasurer’s pre-budget address earlier this week.
“Under Labor, our economy is weak, inflation and interest rates have stayed too high for too long, housing is unaffordable, and our country is less safe because this government has failed to prioritise managing the issues that matter.”
Mr Taylor said there was “nothing soft about this landing”, adding that “Jim Chalmers has overseen the largest collapse in living standards in our history”.
