Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Hansard source

This guy is truly the gift that keeps on giving, isn't he? If the shadow Treasurer had watched the whole conversation between Bill Evans and Karl Stefanovic, Karl asked Bill Evans, 'Have you changed your expectations for interest rates?' and he said, 'No.' I mean, seriously, help the guy out. Somebody point out to him that when Karl Stefanovic asked Bill Evans, 'Have you changed your expectations of interest rates into the future?' he said, 'No, I haven't changed them,' which is the point that I've been making ever since the budget was handed down. The other thing that the shadow Treasurer said—it's hard to keep a straight face with this bloke—and I'd just read out all of these economists who say that the impact on the budget, when it comes to inflation, is a good one or is broadly neutral, is that he tried to pretend that we are on our own. I'm happy to read them out again for you. JPMorgan says it may also make the RBA's like a bit easier. Alan Oster says it's predicted to be broadly neutral over coming years. Amy Auster:

The budget balances investment in health, cost-of-living relief, and aged care with the need to stimulate productivity without adding to our inflationary pressures.

Stephen Halmarick:

The move to surplus in 2022/23 represents a fiscal contraction that is helpful in moderating the inflation pulse …

The market hasn't moved since Tuesday when it comes to inflation and to interest rate expectations. Most important is something I didn't get the opportunity to mention in the answer before, so I'm pleased that he's very charitably given me the opportunity now. In the strange world that the shadow Treasurer occupies, the budget on Tuesday night that has a net spend over four years of $20 billion is inflationary, but the last budget that they handed down in March 2022 had a net spend of $39 billion. So they had a net spend which was twice the spend as the one on Tuesday night. In their world, $39 billion is not inflationary, as we're heading towards the peak in inflation, but $20 billion on the other side of the peak in inflation is somehow inflationary. This, old son, is why nobody takes you seriously.

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