Budget update must finally deliver real solutions

A joint media release with
The Hon Angus Taylor MP
Shadow Treasurer

11 December 2024

The upcoming Mid-Year Budget Update is an opportunity for the Treasurer to finally change course from his failed economic plan that is keeping prices high and crushing living standards.

Labor’s economic management has delivered Australians the worst collapse in living standards on record.

The economy has come to a grinding halt, productivity is in free fall, GDP per capita has gone backwards for a record seven consecutive quarters and interest rates have risen 12 times since Labor were elected.

For too many Australians, this Christmas will be bleak with no hope on the horizon next year thanks to Labor’s lack of a plan.

Jim Chalmers and Katy Gallagher must use the budget update to deliver real solutions which will put our economy back on track.

Australians need a plan that:

1. Restores our standard of living and tames inflation by taking pressure off the prices of essentials and delivering affordable energy for families and business.

1. Restores prosperity and creates opportunity for all Australians so small businesses are rewarded for their effort and young Australians have the chance to own a home.

1. Restores Budget discipline and honesty, including re-introducing the Coalition’s fiscal guardrails, a tax-to-GDP cap and delivering a structural surplus not a windfall surplus.

A failure of these tests will continue to drive our country down the wrong path.

Shadow Treasurer Angus Taylor said this was the Treasurer’s last chance to get it right.

“Enough is enough. This budget update is a critical opportunity for the Treasurer to prove he is serious about turning the economy around,” Mr Taylor said.

“Jim Chalmers might make out it's just an update – nothing to see here – but actions matter, decisions matter.

“Inflation in Australia has remained higher for longer because of the government’s disastrous policies and economic mismanagement.

“Interest rates have been cut in almost 40 countries but not here. Under Labor, core inflation, which is what the Reserve Bank looks at when making decisions on interest rates, has risen.

“Australians are rightly waiting for solutions, not empty promises and three-word slogans.

“If next week’s budget update fails the test, Australians and businesses will be in for yet another year of financial pain and uncertainty.”

Shadow Minister for Finance Jane Hume said that Australians are paying the price for Labor's unnecessary and ill-disciplined spending.

“Australians are poorer than they were, paying more than they were, all while their quality of life has collapsed under this hopeless Labor Government.

“Labor’s budget mismanagement has fuelled the cost of living crisis, and kept interest rates higher for longer.

“The only way to sustainably lower the cost of living is to get inflation down, and the way to do that is through strong economic management.

“The Albanese Labor Government has instead fuelled inflation through unnecessary and wasteful spending in each of its three Budgets.

“Labor has no plan to end the cost of living crisis that they have fuelled for the past two and a half years, and Australians are worse off because of it.

“Only the Coalition can deliver a strong back to basics economic agenda that gets inflation down, the cost of living down, and gets Australia back on track.”