Australia’s near-term economic fortunes hinge largely on household incomes rising at a faster pace than inflation but not so fast that they prompt an overly rapid series of interest rate increases by the central bank, according to the 2022-23 federal budget.
The delicate balance is at the heart of a budget – and election campaign – strategy that relies on an assumption additional handouts in the form of fuel excise relief and an expanded tax offset for mostly middle-income taxpayers don’t fan inflation further.
