Treasurer Jim Chalmers defends record on economy ahead of quarterly inflation data, key to RBA rates call

Federal Treasurer Jim Chalmers has defended the Government’s record on the economy as the campaign for re-election begins to heat up.

Ahead of the release of quarterly inflation figures for December on Wednesday, Dr Chalmers said the government’s decision on tax cuts a year ago had been the right call.

“These tax cuts ensured that Australians could earn more and keep more of what they earn to help them with cost of living,” Dr Chalmers said at a press conference in Brisbane on Saturday.

“That is in many ways an encapsulation of this government’s economic record.

“Inflation is down, wages are up, unemployment is low, and there are tax cuts flowing in our economy right now because of the decision that we took a year ago.”

But there is a missing piece to the Albanese Government’s pre-election sell: Interest rates.

There have been 13 interest rate hikes since May 2022, which have added thousands to families’ mortgages.

Wednesday’s quarterly inflation figures will have a big bearing on whether the RBA board cuts rates.

“Monthly inflation has been in the Reserve Bank’s target band for consecutive months,” Dr Chalmers said.

“What we expect to see on Wednesday is a reminder of the progress we’ve made together.

“What we’ve been able to do is roll out cost-of-living help, roll out the tax cuts, get inflation down, get wages up and keep unemployment low.”

Prime Minister Anthony Albanese and Dr Chalmers would love dearly to go the Federal election — to be held some time between now and May 17 — telling Australians the worst was over and that interest rates are falling.

But the RBA Board is yet to meet, with the next meeting not until mid-February when they will consider whether to keep interest rates on hold, or cut them.

As reported by The Sunday Times, WA Premier Roger Cook has written to the RBA board, imploring it to cut interest rates.

“Inflation has moderated and there’s no longer any reason for the the Reserve Bank to keep interest rates high,” Mr Cook told the RBA.

With the unofficial election campaign now well and truly in full swing, Dr Chalmers used the press conference to take a swipe at Opposition Leader Peter Dutton.

“Peter Dutton would have made made Australians much worse off in the last couple of years if he had his way,” Dr Chalmers said.

“He’ll make Australians much worse off if he wins the next election.

“That’s becoming clearer and clearer.”