The prime minister, Scott Morrison, has emphasised the importance of the government’s tax cuts amid speculation about how the budget will address rising cost of living pressures.
Facing calls from state Liberal leaders and National MPs to cut the fuel excise as petrol tops $2.20 a litre, Morrison said on Monday that the government was “very aware” of the strain being felt by families across the household budget.
“These cost of living impacts are real, and the Australian government understands that,” Morrison said.
“There is always a lot of speculation before budgets and so I will leave the government’s decisions for [the] budget to that night … but there are many pressures on cost of living and that’s why our tax cuts are so important.”
While Morrison has left open the prospect of cutting the fuel excise, which is set at 44.2 cents per litre, he said the Coalition’s focus had been on reducing the tax burden.
Liberal premiers Steven Marshall from SA and Peter Gutwein from Tasmania have urged the Morrison government to cut the excise, which in 2001 was frozen by the Howard government as it faced community pressure over petrol prices.
But broadening the debate over household cost pressures, Morrison said petrol was just one issue facing consumers, and pointed to the more general hip-pocket benefit of tax cuts. He said someone earning $90,000 a year was $50 a week better off than when Labor was in government after the Coalition’s changes to the personal income tax rates and the low and middle income tax offset.
“By cutting taxes and our commitment to cutting taxes, that is actually helping Australians better able deal with the increases in cost of living that you see, for example, on petrol price rises.”
The government has been
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