top of page

Australia Treasurer confident July 1 tax cuts won't stoke inflation

Australian Treasurer Jim Chalmers poses for a photograph as he arrives to attend a G20 finance ministers' and Central Bank governors' meeting at Gandhinagar, India, July 18, 2023. REUTERS/Amit Dave/File Photo
Australian Treasurer Jim Chalmers poses for a photograph as he arrives to attend a G20 finance ministers' and Central Bank governors' meeting at Gandhinagar, India, July 18, 2023. /Amit Dave/File Photo

SYDNEY - Australia's Treasurer Jim Chalmers said on Sunday he was confident cuts to income taxes from Monday would not exacerbate price rises, as the nation suffers a cost-of-living squeeze amid stubbornly high rates of inflation.


The consumer inflation rate reached a six-month high of 4.0% in May, adding to pain for families battling soaring living costs and lifting the chances of another interest rate hike this year from the Reserve Bank of Australia.


The central bank has held interest rates steady at a 12-year high of 4.35% for five meetings, but has raised rates 425 basis points since May 2022 as inflation runs beyond its 2% to 3% target band.


Addressing media in Queensland state capital Brisbane, Chalmers said the government was "confident but not complacent about inflation in our economy" when asked about the impact of the tax cuts, which trim benefits to the wealthy and give low-income earners more breaks.


The tax cuts were about "ensuring that Australians earn more and keep more of what they earn," Chalmers said, according to an official transcript.


"Our strategy here is to provide substantial, meaningful and responsible cost-of-living relief at the same time as we fight inflation," he said.


Under the centre-left government's policy, people earning up to A$135,000 ($88,763) will fall into lower tax brackets from July 1. Tax breaks for some high-income earners will nearly halve, with the savings redirected to those on low incomes.


Labor Prime Minister Anthony Albanese said in January that the Treasury informed the government that the tax breaks were broadly revenue neutral, supportive of jobs, and would not stoke inflation.

Source: Reuters

Comments


Top Stories

Advertise Now (1).png
Live: Madrid Housing Crisis: Protesters Demand Urgent Safety & Repairs | Spain Economy, Inflation
02:13:36

Live: Madrid Housing Crisis: Protesters Demand Urgent Safety & Repairs | Spain Economy, Inflation

Spaniards rally in Madrid against a severe housing crisis as rents double over a decade. Residents like Blanca Castro endure unsafe conditions—with collapsing ceilings and makeshift kitchens forcing them to wash dishes in bathtubs. The protest calls for urgent reforms and accountability from neglectful property owners, highlighting a social emergency that cannot wait. #MadridProtests #HousingCrisis #SpainHousing #TenantRights #SocialEmergency #RisingRents #UrbanNeglect #MadridCrisis #ProtestForChange #ReformNow Amaravati Today is a news channel that provides the latest updates on world affairs and sports events. It covers a wide range of topics, including international politics, major global incidents, and sports highlights #WorldNews #GlobalInsights #AmaravatiToday #News #InternationalNews #GlobalNews #Politics Subscribe to the Amaravati Today channel and tap the bell icon to receive notifications whenever we go live https://www.youtube.com/@Amaravati_Today_Official Follow Amaravati Today on x or Twitter: https://x.com/amaravati_today Follow Amaravati Today on Facebook: https://www.facebook.com/amaravatitoday Follow Amaravati Today on Instagram: https://www.instagram.com/stories/amaravatitodayofficial/ Follow Amaravati Today on Rumble: https://rumble.com/user/Amaravatitoday Follow Amaravati Today on Linkedin: https://www.linkedin.com/company/amaravati-today/ Follow Amaravati Today on WhatsApp: https://www.whatsapp.com/channel/0029VaHWoNe5q08TF4NFKv3d Website: https://www.amaravati.today/ Source: Reuters
9.png
Live Streams | Facts | Analysis | Explainers | Breaking News

Get in Touch

Manikondu Pvt Ltd
SY. 130P & 115/1P, ISB Rd
Financial District, Gachibowli
Hyderabad, India 500032
letstalk {at} amaravati (dot) today

Follow us on

  • X
  • LinkedIn
  • Youtube
  • Facebook
  • Instagram

© 2024 by Amaravati Today | Privacy Policy | Imprint & Dsiclaimer | CIN: U70200TS2024PTC184435

bottom of page