Anthony Albanese’s post-budget interviews don’t rule out higher taxes | Samantha Maiden

What happens next? It was a simple question, but the PM’s response makes for uncomfortable listening if you’re hoping for tax cuts.

When Anthony Albanese conducted the traditional post-budget media blitz this week, he was asked if more pain was the next phase of the “hard days to come” promised in Labor’s first budget.

Rising inflation, interest rates, soaring energy costs and the economic forecasts in the budget are a veritable witches’ brew.

And while it would be unfair to blame those predictions on anything but global events including war, pandemic and natural disasters, it does not make for a comforting read.

The real question is: What happens next?

“So, a safe budget to pay for your election commitments. Are tax increases and spending cuts next?’’ Sky News host Peter Stefanovic asked.

The Prime Minister’s response was less than comforting.

“Hang on, Pete. We just had the budget last night. You’re now talking about future budgets,’’ he replied.

It didn’t sound like a “no” to higher taxes.

“Let’s talk about what we did last night,’’ the Prime Minister continued.

“What we did last night was to fulfil our election commitments, provide cost-of-living relief with cheaper childcare, cheaper medicines, more paid parental leave, more support for affordable housing.”

In other words, this is the budget where Labor beds down the election promises.

The budget that explains how that is paid for is down the track. And that may include higher taxes and more spending cuts.

In recent weeks the Albanese government flirted with tinkering with the Stage 3 tax cuts and then dismounted from that idea.

But there’s a sneaking suspicion it’s an idea the Albanese government may return to down the track.

“Australians know there are hard days to come and hard decisions to accompany them,’’ Treasurer Jim Chalmers pronounced in his first budget speech.

Prime Minister Anthony Albanese speaks with morning TV the day after the budget was handed down. Picture: NCA NewsWire / Gary Ramage

In terms of a cost-of-living relief for the here and now in the budget? It was in short supply.

The huge increase in the childcare subsidy will be welcomed by parents of young children, but won’t start until July next year.

It will not do much to ease price pressures for parents of teenagers, and those without kids in childcare who face higher energy bills.

Meanwhile, energy bills are set to skyrocket by up to $1000 a year, according to the budget.

So, why isn’t the Albanese government offering relief for families? And what does the Prime Minister plan to do about it?

Is there a short-term plan to fix the problem?

For example, one-off payments to families on fixed incomes grappling with rising interest rates, inflation and stagnant wage growth?

The short answer is no. In terms of one-off cash handouts, the Treasurer has raised concerns that could make inflation worse.

“Australians know that the complex combination of challenges at home and abroad is pushing up the cost of living,’’ the Treasurer said in his speech.

“They know that governments cannot make inflation disappear overnight.

“And they don’t need us taking steps that would just make the problem worse by putting even more pressure on prices and making the independent reserve bank job even harder.”

The Prime Minister confirmed they will also consider regulatory reform, but that will take time.

Asked if he will now concede Australians won’t see a $275 saving to their annual energy bill, as promised this term, the Prime Minister said he stood by the modelling.

“If you have renewables investment compared with the business-as-usual approach of just sitting back and watching nothing happen, which is what happened under the former government, then you will have cheaper prices,’’ he said.

Before the election, Labor pledged to cut power bills by $275 to ease cost-of-living pressures.

It’s one of those promises that’s difficult to quantify. It doesn’t mean, for example, a cash discount on your bills.

The Prime Minister predicted the ALP’s policies would lower electricity bills by 2025.

After the election, the Liberal leader Peter Dutton has zeroed in on the promise, noting that Mr Albanese mentioned it 97 times before the election and has barely returned to it since winning after prices soared as a result of the war in Ukraine.

“They promised before the election they had a plan, they’ve never mentioned it since,’ Mr Dutton said.

“People voted for this government on the basis that they would reduce their power prices by $275.”

Pressed on the issue on Wednesday, the Treasurer said the government was considering “a whole heap of options” – including a price cap.

“I don’t want to kind of, narrow this or pre-empt what we might be able to do here,” Dr Chalmers told Nine Radio.

“It involves a bit of work with other colleagues and with other levels of government.

“We’ve made it very clear that we would consider a broader range of options than what might have been considered in the past.”

Whether or not those broader options will work is a question that will be judged in the future.