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Russell Broadbent urges government budget tightening to reduce cost-of-living pressure to tackle inflation after Reserve Bank decision

Russell Broadbent addresses the Reserve Bank's decision to maintain cash rates, urging government accountability in budgeting to alleviate cost-of-living pressures and tackle inflation effectively for Australians' benefit.

By news@gippsland - 10th May 2024 - Back to News

On Tuesday, the Reserve Bank chose to put cash rates on hold, keeping them at 4.35%. This means ongoing pressure for mortgage-holders, unless the Government listens to the Reserve Bank, takes accountability, and gets its priorities straight. While the Reserve Bank is trying to curb inflation, the Government is feeding it - spending an ever-exceeding amount of tax-payer money on deluded and unproductive ventures.

To genuinely ease cost-of-living pressures, the government must adopt a contractionary approach in the upcoming Budget, considering the excessive tax burden

Tackle inflation now

If the government is genuine about its intention to ease cost-of-living pressures, it should take a contractionary approach in next week's Budget. So, what exactly is the government going to do to alleviate cost-of-living pressures? Sure, the revised tax cuts will come into effect later this year, which was the obvious thing to do.

But there's been an average 7.6% increase in our tax rates since last year - the highest in the world - so these modified stage three tax cuts will only return a small portion back to us, the people. And any other incentives, subsidies, or stimulus in the name of 'Cost of living' will simply continue to delay future rate cuts and continue to put hard working families under the pump.

When the Federal Budget is handed down next week, I want to see the government put aside its shiny targets aimed at securing short term political gain, and start to reign in its reckless spending to tackle inflation, which is a hidden tax on us all. That would be for the benefit of all Australians. That's justice as I see it.

Pictures from David Littleproud MP Facebook page.

Source: http://gippsland.com/

Published by: news@gippsland.com