‘Serious Breach’: Liberal MP Warns Labor Against Breaking Key Election Promise - Mc Ebisco ‘Serious Breach’: Liberal MP Warns Labor Against Breaking Key Election Promise - Mc Ebisco
Latest News

‘Serious Breach’: Liberal MP Warns Labor Against Breaking Key Election Promise

Coalition frontbencher Michael Sukkar has said any plans for the government to heed advice and raise taxes would be a “very serious breach” of its election commitments.

Shadow Housing and Social Services Minister Michael Sukkar says higher taxes are the “last thing” Australian families and the country’s economy need. Reserve Bank Governor Philip Lowe said last week the federal government might need to consider raising taxes to lower the country’s debt. Mr Sukkar says he doesn’t want to see Labor “reverting to type” and looking at opportunities to raise taxes. “We know they always do this; they chase higher spending which therefore means they have to attack Australians more,” he told Sky News Political Editor Andrew Clennell. “That would be a very, very serious breach of their commitments.”

Senior Liberal frontbencher Michael Sukkar has warned Treasurer Jim Chalmers against heeding Reserve Bank Governor Philip Lowe’s advice to raise taxes this term.

SEE ALSO:  2023: Atiku, Peter Obi will be humiliated on election day – Oshiomhole

The RBA Governor on Friday flagged the drastic need for a boost in government revenue, suggesting Labor employ tax cuts in the near future.

Labor repeatedly ruled out raising taxes during the election campaign, instead deferring to its plan to target multinational tax avoidance as its primary source of increasing government funds.

Mr Sukkar said the government could not capitalise on Dr Lowe’s statement and “revert to type” to rapidly increase taxes.

“We know that’s in Labor’s DNA,” Mr Sukkar told Sky News Australia on Sunday.

“They went to the election very solemnly telling Australians that they wouldn’t raise taxes that they’d match the Coalition and they should live up to that commitment.

“We know they always do this, they chase higher spending which therefore means they need to tax Australians more.

SEE ALSO:  Amici Rejected By Judge Aileen Cannon Turn To 11th Circuit

“It would be a very very serious breach of their commitments.”

Dr Lowe said Australia’s current budget deficit required Labor to boost government takings or begin cutting expenditure.

He said the Australian community expected a “whole range of services” but despite 50-year record unemployment, the government was struggling to afford it.

“Taxes, cutting back and structural reform – we have to do one of those three things, maybe all three of them, if we’re going to pay for the goods and services that the community wants from our governments,” Dr Lowe said.

“I would hope during this term of Parliament, that you could start addressing probably each of those three things.”

In his first appearance in front of the Senate Economics Committee since the election on Friday, Dr Lowe also conceded it was a “narrow path” to fighting inflation via cash rate rises to avoid a recession.

SEE ALSO:  Nigerians React As Foodstuffs Branded with Peter Obi, Labour Party Surface Online

The Reserve Bank has raised the cash rate four consecutive times from 0.1 per cent to 2.35 with the RBA expected to announce another hike this month.

But the governor flagged the rate rises would slow from its current 0.5 percentage point to a more reasonable 0.25.

“The fact that we’ve raised interest rates by quite a lot already increases the strength of the argument for smaller increases going forward,” he said.

“We’re closer to a normal setting now, which means that the case for large adjustments in interest rates has diminished.

“The alternative, though, of allowing higher inflation to become entrenched would be even more difficult and it would damage our economic prospects.”

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x