“The Intergenerational Report reveals the cost of the Albanese economic model that is stoking inflation and higher interest rates, crashing wealth and wages, and setting future generations up for even lower standards of living”, said Shadow Treasurer, Tim Wilson.
Mr Wilson’s comments follow the release of the seventh Intergenerational Report by the Treasurer, Jim Chalmers, today.
The report outlines:
- Productivity growth is assumed to be 1.2 per cent annually, but the RBA assumes only 0.7 per cent and productivity growth under the Albanese government has gone backward by 5.0 per cent.
- Using the RBA’s productivity assumption for 40 years reveals Labor’s debt will be higher by nearly 40 percentage points of GDP. This would be a further $1.1 trillion in today’s dollars, or $28,000 per person.
- Inflation is assumed back in the band by mid-2027, but Labor’s record on inflation has been a failure, with underlying inflation now at 3.6 per cent, above the band for
13 months in a row, and above target for their entire time in office.
- Labor’s permanently higher tax burden, with taxes reaching 24.2 per cent of GDP. This would lock in the highest rate ever – 2 percentage points higher than the average over the last Coalition term.
- These taxes will hit working and young people. Personal income taxes reach well over their highest share of income ever, more than 25 per cent higher than when the Coalition left office.
- The spending projections rely on Labor being able to achieve huge NDIS cuts.
“Because the Prime Minister and his Taxaholic Treasurer can’t kick their spending and inflation addiction, Australians are paying higher interest rates and supermarket prices, inflation is outstripping wage growth, and higher taxes are harming family home values”, Mr Wilson said.
“Over the long-term the next generation of Australians are being set up for lower standards of living as they inherit rising public debt and a less productive economy”.
“We need a reset from the Albanese economic model and to get back to a pathway of economic growth. Instead, the only growth is in regulation, and the number of times the Treasurer cooks the books”.
“Reports suggest that the Treasurer is flagging tax cuts, but every time he has offered a Clayton’s tax cut, it is quickly outstripped by inflation”.
“If the Treasurer is serious about giving the next generation of Australians a fair go, he would back our Tax Back Guarantee to end the bracket creep and deliver every working Australian a bigger, permanent tax cut, every year”.
“The Treasurer is ramping up his stealth inflation tax on every Australian, so that he can turn around and offer them a fake tax cut, in yet another deception of the Australian people”.
“Jim Chalmers is laying out his plan for the 2060’s, while Australians today are staring down the barrel of three interest rate rises wondering when the Government is going to get serious about its inflation addiction right now”.
“Under Labor, productivity has flatlined, and the Treasurer has backflipped to use old metrics he once described as ‘rubbish’ to paper over his failures”.
“It is unclear how the highest tax burden ever, particularly on investment, will achieve the miracle productivity turnaround this report is relying on”.
“No matter how the Treasurer wants to spin it, the reality is that under his watch, Australians have experienced the largest decline in living standards in the developed world”.
