Labor milks taxpayers to hide own inflation crisis

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The Albanese government has a penchant for using taxpayer subsidies to deflect away from its policy failures and to shift inflation from the CPI to the tax system.

We have seen it with energy bill subsidies to hide inflation in gas and electricity prices brought about by its failure to reserve East Coast export gas for domestic use:

And we have seen it with the rental market with increases in Commonwealth Rent Assistance (CRA).

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CRA Rent assistance

We all know the Albanese Gvoernment created both problems.

First, by failing to contain Uraine War gas price gouging in time in 2022.

Second, by inundating Australia with mass immigration.

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But rather than taking concrete actions to fix either problem, the Albanese government is busy throwing more taxpayer subsidies to mask them:

Sky news Tweet

“We’re still going through the processes of our budget preparation”, Housing Minister Julie Collins told Sky News Australia host Andrew Clennell.

“What I would say to you is that we’re always looking at how we can improve cost of living for Australians”.

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“What you saw from us in the last budget was a historic increase in the Commonwealth rental assistance or you know, the biggest increase in more than 30 years – a 15 per cent increase at the maximum rate”, Collins said.

The same response was given by Jim Chalmers about his energy bil subsidies.

Labor is milking taxpayers to hide its own policy ineptitude.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.