RBA has not looked at whether redistribution of tax cuts to lower and middle income earners could add to inflation
Neither the Treasury nor Reserve Bank modelled the inflationary effects of the Albanese government’s changes to the stage 3 tax cuts even though both agencies have told treasurer Jim Chalmers that the amendments would spur price increases.
Chalmers told ABC’s RN Breakfast on Thursday that the government had consulted RBA governor Michelle Bullock, as had treasury secretary Stephen Kennedy.
Continue reading…RBA has not looked at whether redistribution of tax cuts to lower and middle income earners could add to inflationNeither the Treasury nor Reserve Bank modelled the inflationary effects of the Albanese government’s changes to the stage 3 tax cuts even though both agencies have told treasurer Jim Chalmers that the amendments would spur price increases.Chalmers told ABC’s RN Breakfast on Thursday that the government had consulted RBA governor Michelle Bullock, as had treasury secretary Stephen Kennedy. Continue reading…