Chalmers rules out cost-of-living relief as debt servicing costs soar
Treasurer Jim Chalmers downplayed cost-of-living relief as government debt servicing costs are set to rise by billions.
Treasurer Jim Chalmers has downplayed the prospect of cost-of-living relief in the mid-year budget update, due mid-December. Prime Minister Anthony Albanese had suggested relief measures were coming, but Chalmers said the government must run a "tight ship".
The cost of servicing Australia's trillion-dollar debt will rise by billions of dollars. Global borrowing costs have surged as investors demand higher returns to lend money to governments.
As cheaper existing debt matures, Australia will be forced to borrow at these higher, more expensive rates. Chalmers said the savings package will focus on tackling inflation so wages can grow, rather than direct relief payments.
The government is not considering another fuel excise discount. The Reserve Bank lifted interest rates to a 15-year high this week.
- trillion-dollar
- Australia's government debt
- mid-December
- Budget update timing
- 15-year high
- RBA rates milestone
Why it mattersHigher debt costs will constrain the government's ability to help households, putting continued pressure on wages and living costs.
AustraliaAustralians should expect no immediate relief and higher interest rates to persist as the government prioritises managing its debt burden.
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