Australian Inflation Rate: No Cost-Of-Living Relief In Budget Update
- Dec 20, 2023
- 1 min read
The Federal Government’s most recent Myefo, released yesterday, reveals an additional $64.4 billion in inflows to the government over the next four years, driven by tax receipts from low unemployment, strong commodity prices and record corporate profits in some sectors, especially banking. The figures leave open the door for a second surplus when Treasurer Jim Chalmers delivers his second full Budget in May. However, there was no cost-of-living package for low-income earners or pensioners, out of fear of stoking inflation.
“We know people are still under pressure but inflation is moderating, wages are growing and unemployment is low,” Chalmers said.
Economist Chris Richardson said the strong Myefo figures meant Chalmers could “calm the horses”.
“It’s a very difficult explanation to say to families, ‘We’ve got money and you haven’t, and tough luck, we’re not helping’,” he told Guardian Australia.
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