Australians are being urged by the prime minister to stay the course with the Liberal-National coalition as cost of living pressures tighten.
But Labor says the coalition has been “asleep at the wheel” when it comes to inflation.
Prime Minister Scott Morrison said in a time of “great uncertainty” with cost of living pressures, voters should return his government to power based on their track record.
“We have been a steady hand during the most immense pressures on our economy, and it’s paying dividends, but it’s still tough so now’s not the time to risk it on Labor,” he told the Seven Network on Thursday.
The prime minister’s warning comes as Australians brace for the first interest rate hike since 2007.
Three of the four big banks predict a rise in the cash rate by next week, after new data from the Australian Bureau of Statistics showed the annual inflation rate jumped to 5.1 per cent.
It could force the Reserve Bank of Australia to raise the cash rate from its record low of 0.1 per cent.
Scott Morrison said he would respect the independence of the Reserve Bank and not comment on their potential next move.
But he said there was a “big difference” in the 2022 economy compared with 2007 when interest rates were last raised.
“Last time the Reserve Bank did that, the rate was six-and-a-half per cent. Today it’s 0.1 per cent and so the circumstances of the economic environment we’re in now is very different,” he said.
Shadow Treasurer Jim Chalmers said while some issues causing rising inflation were global, the coalition pretended they could not do anything to address the lack of wage rises.
“There are domestic issues and wages have been stagnant for the best part of a decade, that’s been a deliberate design feature of the government’s economic policy in their own words and we are now seeing the consequences of that,” Mr Chalmers told the Seven Network.
“The government has been asleep at the wheel in inflation and have deliberately attacked and targeted wages and working conditions and job security.”
Labor’s economic plan, if it wins office, would include an audit of “waste and rorts” as well as crackdowns on multinational companies avoiding tax in a bid to make $5 billion in budget savings.
Mr Morrison will start Thursday by campaigning in Cairns – the marginal Liberal seat of Leichhardt – which is held by 4.2 per cent.
Opposition Leader Anthony Albanese remains in isolation after returning a positive COVID-19 test last week.
But Labor frontbenchers will continue to campaign in his stead, and will be in Sydney on Thursday.
Mr Albanese will officially launch Labor’s election campaign in Perth on Sunday.
Meanwhile, ABC managing director David Anderson has written to both major parties pitching a leaders’ debate on Monday, May 9.
