Chalmers’ budget update applies more heat on the cost of living - Media Release
Thursday 18 December 2025
Australians will feel more pain in the hip pocket during Christmas as the Albanese Labor Government’s ‘MYEFO’ update worsened the cost-of-living crisis, Member for Mallee Dr Anne Webster said today.
Treasurer Jim Chalmers’ ‘Mid-Year Economic and Fiscal Outlook’ might have missed many people’s attention due to other tragic matters in the media, but cast a gloomy shadow that will be felt for years to come.
“The Albanese Labor Government has not taken the necessary action to alleviate the upward pressure on inflation their federal budget is creating,” Dr Webster said.
“Labor will be responsible when interest rates rise next year as the National Australia Bank, the Commonwealth Bank and many others are predicting.
“Economists, business leaders and the Opposition have been warning the Albanese government their reckless spending is driving up inflation and now the inflation genie is well and truly out of the bottle.
“Markets and so many economists are predicting inflation will rise and interest rates will have to go up as well.
“Let's not forget that there have been 12 interest rate rises on Labor's watch and only three interest rate cuts. One or two interest rate increases next year will see many more Australian families worse off. As it is, people with an average mortgage of $600,000 are about $20,000 a year worse off under Labor.
“At a time when economists are calling for spending restraint to prevent rate rises, Jim Chalmers and Finance Minister Katy Gallagher continue to loosen the purse strings.
“In the next two years, when inflation is above target, Labor’s decisions actually worsen the budget bottom line and put more pressure on inflation.
Labor has now delivered permanently larger government, permanently higher spending and permanently larger deficits.
“The Prime Minister and Treasurer have baked in spending at the highest level we've seen in almost 40 years outside the pandemic. Australians are ultimately going to have to pay for all this. When Labor spends, Australians pay,” Dr Webster said.
