"Taxaholic Treasurer Jim Chalmers has finally admitted his economic agenda is delivering slower growth and higher unemployment, but rather than undo the damage from his active inflation agenda he continues to stoke inflation through deficits and public spending pushing up interest rates and prices at the supermarket", said Shadow Treasurer, Tim Wilson.
Mr Wilson's comments come in the wake of the Treasurer flagging growth and unemployment downgrades ahead of MYEFO, and the Reserve Bank confirming in writing to a parliamentary committee that lower government spending would reduce inflationary pressures.
"Small businesses and families are living the consequences of our Taxaholic Treasurer's active inflation agenda every day with higher taxes, 16 interest rate rises and higher prices at the supermarket".
"The Reserve Bank has now put in writing what every household already knows. When the government spends less, inflation comes down and the pressure comes off interest rates".
"Real government spending grew by 4.3 per cent last financial year, more than double what was forecast, yet the Treasurer still wants Australians to believe inflation is everyone's fault but his".
"Underlying inflation lifted above the RBA's target in July 2025, and it still isn't under control which means higher mortgage rates and supermarket prices and all because the Treasurer can't kick his spending addiction".
"A sugar hit of data centre investment isn't going to solve our Taxaholic Treasurer running down small businesses, households and confidence".
"The Reserve Bank and the International Monetary Fund have warned government spending is fuelling inflation so it might be time for the Treasurer to start listening".
"Markets are now betting on another rate rise in November, and economists are putting a 50-50 chance on recession. Our Titanic Treasurer has been warned about the iceberg of taxes, spending and regulation, and his only response is to shout, "full steam ahead"".
"The Coalition has a plan to turn this around. We will put a speed limit on spending so government can't spend faster than the economy is growing, crack down on the waste, fraud and abuse of public money that is stoking inflation, and deliver our Tax Back Guarantee so every Australian worker gets a bigger, permanent tax cut, every year".
"Lower taxes and lower inflation give small businesses the confidence to invest, hire and grow, and give families the breathing room to get ahead again".
"The Treasurer has a choice in MYEFO. He can rein in spending, or he can keep running the economy down the recession runway and leave households and small businesses to pay for a recession Australia doesn't have to have".
