Treasurer downplays chance of cost-of-living relief amid surging debt
It seems unlikely households will get cost-of-living relief this year after Treasurer Jim Chalmers revealed the government is looking to "tighten" the budget as borrowing costs boom.
Treasurer Jim Chalmers has downplayed the likelihood of cost-of-living relief for Australians despite surging government debt and rising borrowing costs. The treasurer revealed that a budget savings package will be released before the end of the year, but expressed hesitation about additional assistance for households. Prime Minister Anthony Albanese had previously indicated that cost-of-living relief measures could be forthcoming, but Mr Chalmers emphasized the need for the government to operate a "tight ship" due to mounting budget pressures.
The treasurer cited the intensifying global economic challenges as a primary factor influencing the mid-year budget update, which will focus on finding further savings to alleviate the pressure on the budget. The treasurer acknowledged the impact of inflation and the government's responsibility in bringing it down over time. He also highlighted the Reserve Bank of Australia's recent interest rate hike to a 15-year high, urging the central bank not to "play the blame game" and attributing inflation to factors beyond the Middle East conflict.
The treasurer warned that the cost of servicing government debt would increase by billions of dollars due to rising borrowing costs worldwide, further straining the Australian economy.
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