The federal treasurer has defended his budget’s cost-of-living relief as interest rate hikes and high inflation hit the hip pockets of many Australians.
“We know that Australians are under the pump. We know that cost of living pressures are biting,” Jim Chalmers told reporters in Canberra on Monday.
Welfare advocates, the Greens and independent MPs have been critical of the budget, saying various measures, such as a $40 a fortnight increase to the Jobseeker payment, increased rental support and help with energy bills, do not go far enough.
Dr Chalmers said the budget had helped ease the stress Australians had been facing but acknowledged inflation was still too high.
“That’s why so much of the government’s focus over the first 12 months has been taking some of the edge off these cost-of-living pressures without adding to inflation.”
The treasurer also spruiked a strong jobs market as the government reaches its first year in office.
Treasury analysis of jobs data shows 333,000 more Australians were employed in April 2023 compared to when Labor took office in May 2022.
It was the second-highest increase on record.
“Jobs growth is faster than the major advanced economies and we’re seeing the beginnings of welcome wages growth,” Dr Chalmers said, seizing on record high female employment, with an extra 21,400 women employed full-time in April and almost 224,000 more since a year ago.
Female unemployment dropped to 3.3 per cent, the lowest since 1973.
“This government is all about building an economy that delivers more opportunities for more people in more parts of our country and central to that is creating more secure, well-paid jobs,” Dr Chalmers said.
Almost two-thirds of jobs recorded a higher wage rise than the year before.
The coalition opposition is dismissive of Labor’s back-slapping, saying the results are based on strong economic circumstances left by the outgoing Morrison government.
Nationals leader David Littleproud says increased welfare payments in the budget on top of extra spending risked adding pressure to inflation.
“We’re saying it’s tough for those on welfare, but let’s get you back into the workforce,” he told the ABC.
“Let’s pull the policy levers that bring down your energy prices without having to spend Australian taxpayers’ money.”
Mr Littleproud also called on the government to bind large supermarkets in a mandatory code of conduct as they reported big profits on the back of higher shelf prices.
“What’s happening is our good friends at the supermarket, as usual, are sitting there profiteering off the good old Australian farmer,” he said.
Penalties needed to be increased from $64,000 to $10 million.
“Bring in big stick legislation, divestiture powers where if they do farmers over and it’s not a transparent price, then you lose a Dan Murphy’s,” Mr Littleproud said.
Shadow treasurer Angus Taylor chastised the government for overseeing a decline in real wages as pay raises failed to keep up with inflation.
Small businesses were struggling to keep employees and find workers, while families were struggling to keep up with the cost of living following consecutive interest rate hikes, he said.
– AAP
