The federal Opposition Leader has used his Budget reply speech to lay the blame for any future increase in interest rates at the feet of the Albanese government, arguing their second Budget will fuel inflation and make life harder for millions of Australians.
Peter Dutton labelled Dr Jim Chalmers’ second Budget as Treasurer big spending and posing “bandaid” relief that will result in more pain.
Mr Dutton said the Albanese government’s Budget would make cost-of-living pressures worse and risk creating a generation of working poor Australians.
“Inflation is coming from Canberra and Labor’s big spending Budget will only fuel inflation and make life harder for millions of Australians,” Mr Dutton said.
“The government has taken decisions – and avoided others – which has made inflation higher than it needs to be.”
Treasury has forecast inflation – which was at 7 per cent for the March quarter – will fall to three-and-a-quarter per cent next financial year and return to the Reserve Bank’s target range of 2 to 3 per cent the year after.
The Budget’s $1.5 billion package to provide up to $500 relief on power bills for one million small businesses and five million households on government assistance has been modelled to reduce inflation by a quarter of a per cent next financial year.
The Opposition Leader has criticised the temporary nature of cost-of-living relief.
“That temporary relief is targeted at Australians on welfare but at the expense of the many including Labor’s working poor,” Mr Dutton said.
“It’s a bandaid now, but much more pain later.
“In this Budget, despite the government’s energy polices, your electricity bill is still going up by more than $500.”
Mr Dutton has remained vague about his position on the government’s $40 a fortnight increase to some income support, including Jobseeker and Youth Allowance.
The Coalition will support changes to increase support for over-55s on Jobseeker but has proposed a new policy.
“The Coalition would have thought, before increasing the base rate in this tight labour market, the government could have instead increased how much people can earn before their welfare payment is impacted,” he said.
“There are over 840,000 Jobseeker recipients, of which more than 75 per cent had no reported earnings – that is, no part-time work.
“This will incentivise more job seekers to take up opportunities and enable Australians on low incomes to be supported.”
Assistant Treasurer Stephen Jones said Mr Dutton was out of touch with middle Australia.
“Peter Dutton looks into the living rooms of middle Australia and doesn’t see people who need childcare, people who use Medicare,” Mr Jones said.
“Peter Dutton needs to get back in touch with what middle Australia really looks like.”
He questioned why the opposition hadn’t acted on any of their proposals while in government.
“Peter Dutton has had 12 months to think about the future of the country, he’s come back into the parliament with the same old ideas,” he said.
“A bloke who’s been talking about the importance of balancing a budget for the last 12 months has delivered a speech that adds at least $10 billion in debt to the bottom line.”
The opposition has also proposed allocating an additional $9 million for women’s health and vowed to restore 20 Medicare-subsidised psychological sessions, up from 10.
Mr Dutton vowed that a Coalition government would move to ban sports betting advertising during sports matches and an hour either side of them.
Mr Dutton announced support for the government’s 15 per cent increase to Commonwealth Rent Assistance, $3.5 billion to triple the bulk-billing incentive for children under 16, pensioners and other Commonwealth concession card holders, and changes to eligibility for the parenting payment.
He accused the government of backing a ‘Big Australia’, citing a projected increase in migration, which is being fuelled by the return of international students and travellers.
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