Karl Stefanovic has clashed with Anthony Albanese on live television about the impact of cost of living, inflation, and rising interest rates on everyday Aussies after handing down the budget last night.
While welfare recipients, renters, and single parents are among the big winners, middle-class Australians struggling to pay skyrocketing mortgages get next to nothing.
Stefanovic repeatedly asked whether the budget will put pressure on inflation while Mr Albanese refused to give any guarantee there will be no more interest rate rises.
He also spoke up on behalf of millions of Australians struggling to make ends meet.
‘I just want to talk, if I maybe so boldly on behalf of everyday Aussies. I think people are really struggling,’ Stefanovic began.
‘They want to know when will their bills will come down and mortgages stop going up? What guarantee in this budget that any of those things will happen?’
Karl Stefanovic has some tough questions for Prime Minister Anthony Albanese on Wednesday
Mr Albanese used the question to spruik the positives from his ‘responsible’ budget.
‘That is why we provided energy price relief,’ the prime minister replied.
‘That is why cheaper childcare begins on July 1. That’s why we are reducing the cost of medicines. That’s why we have tripled the incentive for bulk billing.’
‘This is a responsible budget, one that helps to lay the foundations for the strong economy that we promised inform are a better future whilst looking after people.
‘Because we understand that people are under financial pressure. That’s why we have provided this support in the budget.’
Mr Albanese was asked several times whether the budget will impact on inflation.
‘Well Karl, If it was the case I was standing before you now talking about whether our deficit was too high, there might be an argument,’ he said.
‘The truth is that our projected surplus is the first in 15 years.
‘And we have gone through hour after hour, day after day, week after week since the October budget putting together a responsible budget that provides that better future, that provides those measures which take pressure off people who need it while not putting pressure on inflation.’
Stefanovic wasn’t finished with the tough questions.
‘Given what you have said about the budget and inflation you can guarantee there will be no more interest rate rises?’ he asked.
Mr Albanese shot back: ‘As you know Karl, the RBA is independent and no-one can speak on behalf of the Reserve Bank.
‘What we can do, as responsible economic managers, is hand down a budget that’s responsible, we did that last night.’
‘Will you increase taxes?,’ Karl asked Albo, before the PM dodged the question.
‘Well, Karl, we just produced a budget last night, all of the measures that we have considered are there for all to see.’
Later that morning, Karl Stefanovic accused treasurer Jim Chalmers of ‘leaving the door open’ to fiddling with the stage three tax cuts.
When the cuts kick in next year, the number of tax brackets will slashed from five to four, for the first time since 1984.
If you earn $80,000 you’re set to get back $875 per year, while those on $120,000 will get back $1,875.
The big winners are those earning more than $200,000 stand to get back $9,075, compared with now.
A new 30 per cent marginal tax rate would apply for those earning $45,000 to $200,000.
This will reduce the income tax burden for about nine million Australians.
‘Can you make a pledge this morning that you aren’t going to make changes to tax?,’ Karl Stefanovic asked Dr Chalmers.
‘The tax cuts are legislated,’ Dr Chalmers replied.
‘We haven’t changed our position on that. They come in more than a year’s time. We have other priorities in the interim.’
‘Okay, so sorry to interrupt. This is just one thing that I wanted to get squared away. You are saying all of that. But can you close the door on any future change this morning?’
‘I think I have been pretty clear, Karl,’ the Treasurer replied.
‘We haven’t changed our position. We actually haven’t discussed it in the context of this budget changing our position on that. They are legislated and in the budget bottom line. I provided the costing of them.’
‘You are leaving the door open, Jim,’ Stefanovic replied.
‘I don’t think that I am, Karl. We haven’t changed your view and we haven’t discussed changing our view. They are legislated.’
| Income | Tax rate before stage three cuts | Tax rate after stage three cuts | |
|---|---|---|---|
| $18,200 or less | 0 per cent | 0 per cent | |
| $18,201 – $45,000 | 19 per cent | 19 per cent | |
| $45,001 – $120,000 | 32.5 per cent | 30 per cent | |
| $120,001 – $180,000 | 37 per cent | 30 per cent | |
| $180,001 – $200,000 | 45 per cent | 30 per cent | |
| $200,001+ | 45 per cent | 45 per cent |
Stefanovic also confronted Dr Chalmers about the impacts of rising immigration hitting rental and house prices.
‘That clearly has to affect house prices and rents have to go up. How is that not inflationary?’ Stefanovic asked.
‘Well, first of all, the increase in the net overseas migration number it’s not a Government policy or a target. It’s driven largely by the fact that the students are coming back quicker and the tourists are coming back quicker than anticipated,’ Dr Chalmers replied.
‘And fewers Australians are leaving Australia for work. Even if this increase is that we forecast in the budget last night, it still doesn’t make up for what we lost during Covid,’ he explained.
‘Compared to what we thought a couple of years ago the population down the track will be a bit smaller than that we anticipated or what the former Government anticipated.’
