2 weeks Ago By Shane Wright
Treasurer Jim Chalmers has warned the government’s increasingly worried backbench the pre-election budget will not be a spendathon to woo voters scarred by cost-of-living pressures as evidence grows that inflationary pressures are easing. Ahead of this week’s critical September-quarter inflation figures, which many experts believe will show consumer prices growing at their slowest rate since the early stages of the pandemic, Chalmers said the government would not add to prices with irresponsible spending in either his mid-year budget update or the 2025-26 budget. Treasurer Jim Chalmers has warned backbench MPs he will not use the coming budget to engage in a cost-of-living spendathon.
Credit: Alex Ellinghausen Labor MPs have called for Chalmers to use his two fiscal set pieces to expand programs to help voters dealing with high inflation and mortgage interest rates. There is also growing concern about the hit being borne by small businesses as consumers cut discretionary spending. Saturday’s Queensland state election, at which the Labor government lost power after a 7.
4 per cent swing against it, was dominated by cost-of-living issues. Chalmers has used the past two budgets to reveal initiatives to help households with price pressures, including handouts to reduce power bills , a large increase in rent assistance and this year’s re-jigged stage 3 tax cuts . Pressed on Monday whether he would go further, the treasurer said he would not splash cash on programs that could ultimately add to inflation pressures.
Loading “I want to reassure people and assure people that we will continue to put responsible economic management as the defining feature of this Albanese Labor government,” Chalmers said. “This election was never going to be, from our side, a free-for-all of public spending. It wasn’t going to be before Saturday’s outcome and it’s not going to be after Saturday’s outcome.
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