Business leader urges government to slash spending to fight inflation
McKellar urges the government to cut spending from 27% to 25% of GDP and adopt income tests for welfare programs.
Andrew McKellar heads the Australian Chamber of Commerce and Industry and has set out urgent steps to fight inflation. McKellar wants the government to cut spending and to adopt income tests for more welfare programs.
These include childcare subsidies and electric vehicle rebates. Mortgage holders and businesses are struggling with high interest rates and weak consumer confidence, he said.
Spending cuts alone will not fix the problem, McKellar argued. The government also needs firm spending rules and must balance the budget over the economic cycle.
McKellar also backed the EU free trade deal as good for Australia.
- 27% of GDP
- Government spending
- 5th time this year
- Interest rate rises
Why it mattersThe government's spending choices will shape inflation, interest rates, and the support available to households and businesses over the next few years.
AustraliaIf the government adopts these proposals, welfare payments and subsidies could fall, and tax policy may shift to balance the budget, affecting millions of Australian households.
