Federal Treasurer Jim Chalmers has flagged more tax relief is on the cards if the Government can find room in next month's budget. Cost of living issues are dominating the political agenda, as inflation bites.

Canberra

Federal Treasurer Jim Chalmers has indicated that further tax relief could be a possibility in the upcoming federal budget, should the financial space allow it. This comes amid growing concerns over the cost of living, with inflation impacting households across Australia. The issue is increasingly dominating the country's political discourse, highlighting the need for governmental intervention.

In recent comments, the Treasurer emphasized the government's commitment to providing cost of living relief if it can be achieved in a responsible and meaningful manner, without exacerbating the inflation issue. The consideration for additional support measures is being recalculated in the wake of Chalmers’ trip to Washington D.C., amidst a global economic environment described as uncertain and fragile, particularly due to ongoing conflicts in the Middle East which threaten to further stimulate inflation.

Despite these challenges, the goal for a budget surplus remains, though Chalmers has acknowledged increased difficulty in achieving this target. This comes as new polls suggest a growing concern among Australians regarding their financial resilience, with 55% indicating they would struggle with unexpected significant expenses.

The government's challenge lies in crafting a budget that addresses the cost of living pressures effectively, especially in marginal suburban areas where the political stakes are high. As the budget preparation progresses, the Australian public awaits concrete plans to alleviate the economic strains affecting them. 



More cost of living relief expected in Federal budget

Sentiment on the streets, in a Sydney seat where Labor has a slim margin. I've got two small children and I just feel like as soon as you earn a certain amount of money, that's it. There's not a lot of support out there so I think that there's definitely something more that they could do. It should come as no surprise to the Albanese government. The cost of living with the food in the supermarkets, it's very expensive. Fuel prices. The mortgage is a bit of a killer. More cost of living help has long been promised. If it's affordable, if it's responsible, if it's meaningful and it takes some of the edge off inflation rather than add to the inflation problem, then that is attractive to us. We've just got to make all the numbers add up. The Treasurer is recalculating some of the numbers for the upcoming budget after returning from a trip to Washington DC. The global economy is uncertain and unpredictable, fraught and fragile. And war weighs heavily. Conflict in the Middle East casts a shadow over the global economy and it does risk another spike in inflation. Even so, a surplus is still within sight. Our objective is still a second surplus. We're not there yet. The degree of difficulty on that has come up a bit. There are two new polls out today. One has Labor's vote almost the same as the last election, the other below. In that poll too, people were asked if they would struggle to afford an unexpected major expense like needing a new fridge and 55% said they would. What that data is telling us is that the cost of living crisis in Australia is really beginning to bite. The challenge for the government is how best to deliver relief for cost of living in the budget in the current economic climate and in a way that has impact, especially in marginal suburban seats where every vote counts. Ashley Raper for 10 News First.

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