To the extent that tax cuts put more money in consumer pockets they will increase demand and add to inflationary pressure. JP Morgan made a similar point: • Fiscal policy should be supportive, tax cuts coming which will "therefore be a tailwind for growth (and inflation), allowing the economy to sustain higher interest rates than previously". (full story)

{video} Anthony Albanese has defended breaking a major election promise by overhauling the stage three tax cuts, arguing changed economic conditions forced his hand as he seeks to win back Middle Australia. The Prime Minister addressed the National Press Club on Thursday to unveil his plan to slash the tax cuts for higher income earners in favour of bigger breaks for those earning under $150,000. “For me, our responsibility is clear. This is the right decision, not the easy decision,” he said. Over the summer, senior Treasury and Finance officials were tasked to canvas options for providing cost-of-living relief for ... (full story)