Taxpayers will bear the burden of Labor’s spending

It should come as no surprise that taxpayers will be forced to fund an increasing share of government budgetary outlays, because that is the Labor model: spend big and tax big. (“$300bn hit going to give workers the tax creeps”, 28/6). The trouble with this formula is that an ongoing decline in real household incomes, along with sluggish productivity and sticky inflation, will continue to plague households and businesses. Under a Labor minority government with the balance of power held by the Greens, this reality will only worsen. A fantasy-based energy policy will force industry offshore and cut off our traditional and major energy minerals export earners. Future budgetary burdens, including social programs and defence, are growing exponentially; policy void of pragmatism or common sense, that inhibits our ability to fund such programs, is tantamount to economic suicide.

Ron Hobba, Camberwell, Vic

An economic time bomb is ticking in Australia. Notwithstanding promises by the federal Treasurer, Jim Chalmers, we now learn that workers will be forced to shoulder fiscal repair to the tune of $300bn. However, the crunch is yet to come as inflation inches higher and the Reserve Bank responds accordingly with interest rate hikes. So, we’ll have July 1 tax cuts eaten up by bracket creep, higher interests on home loans and sky-high power and fuel prices (“$300bn hit gives us the tax creeps”, 28/6). It’s all very well for the government to repeatedly tell voters it understands that people are doing it tough.

Words are cheap, the cost-of-living crisis is not. And the problem is being exacerbated by profligate spending by the commonwealth through its expansionary economic strategy. Combined with baked-in structural costs like the NDIS, government spending is out of control. Everywhere we turn at present there seems to be significant financial challenges. Australia still is the “lucky country”, comparatively speaking, but as far as luck is concerned the federal government is running out of it. It must realign its priorities, tackling union power and delivering real relief for the other 99 per cent of the population.

Tim Sauer, Brighton East, Vic

Following Wednesday’s bad-look CPI result, spare a thought for RBA governor Michele Bullock. Households with savings would appreciate a cash rate rise in August, while those with considerable debt will face the next RBA meeting with apprehension. Business is likely to be torn between wishing to keep interest bills down, but hoping for a knockout blow to inflation.

However, there is no ambivalence whatsoever in the Albanese government, which understands that the bookmakers are likely to radically change their election victory odds in the event of a cash rate rise in August. Bullock herself is likely to receive a great many unsubtle suggestions from various Labor heavies. Hang in there, governor.

Bob Miller, Leederville, WA

What a fine pickle we are in after two years of federal Labor. Productivity is down. Defence spending is down in real terms. Defence recruitment is inadequate to defend the nation. NDIS spending is through the roof. Illegal boat arrivals are up. CPI inflation is up. Bracket creep is worsening. Rents are up. Interest rates may go up. Renewables will cost the budget $1.5 trillion by 2030. Anti-Semitism is rife.

Power bills are continually rising, unless our money is used to provide rebates. What a fine example the government is setting for the rest of us. Labor smiles all the while. Albanese’s only achievement after two years in office as Prime Minister – the release of Julian Assange. What could possibly go wrong?

Peter Tredenick, Laidley, Qld

With both the federal and state governments continuing to spend wantonly, all using borrowed money, no one should be surprised by the rise in inflation. Nothing is likely to bring it under control without further interest rate rises and quite possibly a recession.

Various treasurers have indicated that in their opinion the people no longer care about deficits, they just want things done. When “the people” start realising what the true costs of out-of-control government spending are, they will care then. The same goes for when “the people” realise the true costs of renewable energy.

Brian Barker, Bulimba, Qld