It’s cold comfort but ‘restraint is the aim of the game’

As Australians grapple with soaring electricity prices, grocery bills and mortgage repayments, it would have been so tempting for the shiny new government to step in and lend a hand.

As Australians grapple with soaring electricity prices, grocery bills and mortgage repayments, it would have been so tempting for the shiny new government to step in and lend a hand.

Politically very easy to do, but economically potentially disastrous.

That’s the point Treasurer Jim Chalmers is driving home with his first budget, as he moves the nation onto a warlike footing with one clear enemy in his line of sight: inflation.

The cost of basic goods and services is going to be higher for longer, and if the government tries to tip the scales by helping out households it will all but certainly backfire.

A cold comfort to the millions of Australians wondering how they will make ends meet in the coming months, but Mr Chalmers has eschewed political expediency and declared “restraint is the name of the game”.

At the very least, this can’t really come as a surprise.

National Political Editor Clare Armstrong. Picture: Richard Dobson

Mr Chalmers has been foreshadowing his “bread and butter” budget for months, it was just that everyone hoped there might be a sprinkle of jam in there to sweeten the deal.

But extending the fuel excise cut was long ruled out, as was continuing a low and middle income tax offset.

Energy bill relief? No way. Cash for pensioners? Not a good time.

Chalmers had promised it would be a bread and butter budget. Picture: Martin Ollman/Getty Images

What’s the point of helping if it pushes inflation even higher, the government argues.

In his speech on Tuesday night Mr Chalmers mentioned “responsible” eight times, “affordable” 11 times and “resilient” on seven occasions.

After almost a decade on the opposition benches, Labor have landed in the economic drivers seat just as the car is locked on course to go over an inflation and debt cliff.

This budget was carefully calibrated to deliver what was pledged in the lead up to the May federal election and almost nothing more.

Key measures like cheaper childcare and expanded paid parental leave are being sold as productivity measures, and don’t seriously kick in until inflation is expected to ease.

Every dollar spent by the government has been scrutinised, with cuts scattered throughout this budget and all signs point to more coming in the future.

As Mr Chalmers said, these are “difficult times” and he’s not afraid to make “difficult decisions”.