Shadow treasurer Angus Taylor says the federal government’s new forecast for inflation – which estimates it will reach the top of the Reserve Bank’s target range by the end of the year – is “smoke and mirrors”.
The federal government says its cost-of-living measures, including an additional increase to Commonwealth Rent Assistance and $300 in energy bill rebates for all Australians, will reduce inflation.
Taylor said it was not a real reduction in inflation, and it failed to solve the underlying problem.
“Well, it’s smoke and mirrors. It’s playing with numbers. At the very best, the energy relief is deferred inflation years – put it off [and it] comes back again, because you’re not going to keep offering that 300 bucks, that goes to everybody,” he said on ABC’s RN Breakfast.
Shadow treasurer Angus Taylor says inflation forecasts are “smoke and mirrors”.Credit: Getty
“And the truth is, the Reserve Bank will look straight through it. They’ll look at the underlying inflation. That’s what they do. That’s what they should do. So they’re going to ignore these facts.”
Taylor said it was reasonable to ask whether the relief should be means tested and that’s what the Coalition would ask the government.
Opposition leader Peter Dutton said the Coalition would support the cost-of-living relief measures, but Taylor said there were big parts of the government’s plan the opposition was strongly opposed to.
“Handing out billions to billionaires through production tax credits. You know, frankly, this is not a good use of taxpayers’ money,” he said, referring to the government’s Future Made in Australia policy.
“This is not how you get manufacturing and resources sectors really firing. We know that from history.”
Source Agencies
