SYDNEY, May 8 (Reuters) - Australia's centre-left Labor
government said on Monday it would include A$14.6 billion ($9.84
billion) over four years in the federal budget for cost of
living relief for families and businesses, which it promised
would not stoke inflation.
The plan is designed to directly ease price pressures and
inflation, the federal government said, which has eased in the
first quarter but still sits near 30-year highs of 7.0%.
"The centrepiece of the budget ... will be cost-of-living
relief that doesn't add to inflation," Treasurer Jim Chalmers
said in a statement, ahead of Tuesday's federal budget.
"People are under the pump. We've carefully calibrated and
designed this Budget so that it takes pressure off the
cost-of-living rather than add to it."
The government is set to unveil in the budget financial
assistance for more than 5 million low-income families, small
businesses and pensioners struggling with high power bills.
Chalmers has repeatedly stated his budget would be
restrained on spending so as not to add to inflationary
pressures, while also giving some relief, after the Reserve Bank
of Australia (RBA) last week stunned markets with a rate rise,
defying trader expectations for an extended pause.
The RBA on Friday warned that risks to inflation were on the
upside given low productivity growth, rising energy prices and a
surge in rents.
The latest relief measures come after the government set
aside A$11.3 billion for wage rises for aged care workers over
four years, while announcing an additional 5% tobacco tax and
A$2.4 billion in more tax on oil and gas producers.
Australia's deficit is expected to shrink sharply, the
budget is expected to show, as its coffers bulge with tax
windfalls from commodity exports, yet the outlook will be a
sober one as fiscal challenges loom.
($1 = 1.4830 Australian dollars)
(Reporting by Renju Jose in Sydney; Editing by Sam Holmes)
Messaging: @renjujose))
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