There is a “credible case” the Albanese government’s second budget will make inflation worse, shadow treasurer Angus Taylor says.
Mr Taylor on Wednesday used a National Press Club speech to deliver his assessment of Labor’s economic blueprint released last week.
“Far from returning 99 per cent of revenue windfalls to the bottom line, as promised in October, the government has banked just 40 per cent of improvements in the budget bottom line (since the pre-election budget report), and spent 60 per cent of the massive windfall from strong commodities and job markets,” Mr Taylor said.
“No one wins from a big spending government in an inflation crisis.
“At best the budget fails to address inflation. At worse it adds fuel to the fire. There is a credible case that it is making it worse.”
He pointed to $185 billion in new spending since Labor came to office in May last year, with $2 of new spending initiatives for every new dollar of revenue initiatives.
The Liberal frontbencher said “core inflation” in Australia was worse than other major economies.
“At 6.6 per cent, Australia’s core inflation is higher than the UK (6.2 per cent), the US (5.6 per cent), Canada (4.3 per cent) and the Euro Area (5.7 per cent),” he said.
Mr Taylor said poorly planned migration would drive up housing costs and the “fiscal guardrails” demanded by business groups were not in place.
The shadow treasurer said inflation and low economic growth were a “dangerous combination”.
“At a time where inflation is making quality of life worse, productivity gains are the only pathway to ensure Australians can realise their aspirations,” he said.
“Making it easier to do a job or run a business.
“Making it easier for customers to get a better deal or to engage with government services.”
– AAP
