Wednesday May 10, 2023
Australian Prime Minister Anthony Albanese has assured the public that the latest round of government relief for low-income Australians will not boost inflation amid warnings from the opposition.
In an interview with ABC Radio on 10 May, the Prime Minister reiterated the government's views that the $14.6 billion cost-of-living package outlined in the 2023–24 federal budget had no impact on the country's inflationary situation.
“We are facing the global economic challenge of inflation. So what we did was to provide support to take the pressure off people,” he said.
"It's a responsible budget that takes care of people at the same time."
Among the cost-of-living measures introduced in the Budget was an increase in the basic rate for Jobseeker's Support payments, Austudy and Youth Allowance by $US40 ($27) a fortnight, which would benefit around 1.1 million people .
The Labor government also expanded access to single-parent payments by raising the age limit for children from eight to 14, allowing eligible parents to continue receiving support for an additional six years.
Other measures included a 15 per cent increase in maximum Commonwealth Rent Assistance rates, a $500 rebate on electricity bills for eligible households and businesses, as well as cheaper childcare and healthcare costs.
Albanese said the government balanced the needs of the economy with the needs of the people when proposing the measures.
"You don't make decisions based on one thing. You would look at the overall budget,” he said.
“What this government needed was a responsible budget that delivered savings that delivered a stronger economy that laid the foundations for people, while providing support to those who needed it most to take the pressure off them.
The Prime Minister also noted that the government cannot provide everything that is asked for in every budget and is concentrating on what it can do for the people in practice.
In addition, the Albanians said the government has no plans to make changes to the third stage of tax cuts, which are due to take effect in July 2024.
"We have not changed our position," he said. “It's something that was enacted some time ago. It was not part of our considerations in this budget.”
Opposition warns against inflation
Despite the Prime Minister's confidence, Opposition Leader Peter Dutton said the Budget was likely to prompt the Reserve Bank to raise interest rates.
"At least under this Budget we know that interest rates will be higher and longer, which will be a double whammy for Australian families," he told Sky News.
"For families, they're in big trouble at the moment and there's nothing in this budget for them at all."
The Opposition Leader also blamed the government for the energy crisis, saying it was the making of Labor policy.
When the Prime Minister promised that electricity bills would be reduced by $275, in this budget we will find that electricity bills are likely to rise by almost $500 over the next 12 months,” he said.
Dutton also pointed to the impact of 1.5 million immigrants coming to Australia over five years in the budget.
"You have no plan for this. On average, three hundred thousand people a year will contribute to the housing and rental crisis," he said.
"At a time when we don't need an inflationary impact, that will be very significant."
Dutton's warnings come as the budget projected a $4.2 billion surplus for the current financial year after the government saved more than 80 percent of revenue gains from high commodity prices and a strong labor market.
However, the government expected to post a deficit of $13.9 billion in 2023-24, $35.1 billion in 2024-25, $36.6 billion in 2025-26 and $28.5 billion in 2026 -27.
