Cheaper power, child care and no mortgage blow out: Labor’s pitch quoting former PM

The man bidding for the spot as the next federal treasurer has slammed the Morrison Government for “shovelling cash in the general direction of voters”, saying Labor will focus on cutting wasteful spending in a bid to improve the cost of living for Australians.

Cheaper power bills, child care and more jobs will be central to a Labor budget, Opposition treasury spokesman Jim Chalmers will say as he warns big budget cash sprays could push mortgage repayments to record highs.

It comes as he joins Opposition leader Anthony Albanese in invoking Kevin Rudd’s successful 2007 election campaign, saying “this reckless rorting and wasteful spending must stop”.

His cost-of-living, pre-election pitch to voters will take place on Tuesday, as he reaches out to Labor’s heartland which turned its back on the party in 2019.

Opposition treasury spokesman Jim Chalmers. Picture: Zak Simmonds

He will seek to sell the party’s biggest policies so far, emissions reduction and child care rebates, on how much they will save family budgets and boost jobs.

Queensland’s most senior Labor federal MP will also warn the too much cash stimulus will wreck household budgets if it pushes interest rates too high.

“If it’s not the time to flick a switch to austerity, it is the time to flick a switch to quality,” Mr Chalmers will say at the National Press Club.

“The Commonwealth Bank’s latest forecasts are that a cash rate of around 2.5 per cent in line with market pricing will push mortgage payments as a share of household disposable income to a record high.”

Rather than pitching on climate change, he will sell the party’s emissions reduction plan as a way to save money on power bills.

“It will cut power bills by $275 a year by 2025, unlock $76 billion of investment and create over 600,000 jobs, most of these in the regions too,” Mr Chalmers will say.

“Cheaper child care will boost GDP from higher participation by at least three times as much as the government’s alternative, but it’s also great for kids and helps alleviate cost pressures on working parents.”

Jim Chalmers will paraphrase former Prime Minister Kevin Rudd from his successful 2007 election campaign in his National Press Club budget reply speech. Picture: Gary Ramage

While not mentioning him by name, Mr Chalmers will also paraphrase former Prime Minister Kevin Rudd as he accused the Morrison Government of “shovelling in the general direction of voters”.

“To paraphrase another Queenslander – This reckless rorting and wasteful spending must stop,” he will say.

“We are acutely aware of rate hike risks and what this means for household and federal budgets.”

Mr Rudd, prior to his 2007 election victory, campaigned as an “economic conservative” and in relation to a big-spending Howard Government budget declared “this reckless spending must stop”.

Originally published as Cheaper power, child care and no mortgage blow out: Labor’s pitch quoting former PM