/ 07 February 2024

Inflation and taxes, oh my

Image source: Getty
Image source: Getty

Surprising no one, the Reserve Bank kept its official cash rate on hold at 4.35% yesterday – that was the expected outcome given inflation has fallen to 4.1% from a high of 7.8% a year ago. What was new was RBA Governor Michele Bullock giving a press conference after the announcement, in which she wouldn’t be drawn on the possibility of an impending rate cut: “we haven’t ruled anything out, and we haven’t ruled anything in.” As that transpired, the Coalition has decided it’ll ultimately vote to pass Team Albanese’s changes to the Stage 3 tax cuts, after seeking amendments. In the first Question Time of 2024, Albanese defended the changes as “every taxpayer getting a tax cut”, while Coalition leader Peter Dutton pressed him to rule out other tax changes. So, straight back into it then…

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