CPI Squeeze on Family Budget Mark Latham - Shadow Treasurer, Manager of Opposition Business in the House of Representatives

Media Statement - 22 October 2003

Today's CPI figures highlight the squeeze on Australian households under the Howard Government.

At a time of record household debt, record-high taxes and the prospect of interest rate rises, the last thing families need is higher prices.

The annual CPI figure of 2.6 percent (0.6% September quarter) includes sharp price increases for many of the essentials of life: 9.3% for hospital and medical services, 12.4% for child care, 7.0% for pre-school and primary education, 6.1% for home purchases and 6.0% for electricity. Most of these increases are a direct result of government policy.

The Federal Government is blind to these pressures on the family budget. It has no strategy for making health, child care, education and housing more affordable. In fact, its Medicare reforms will reduce bulk billing for working families.

Since 1996 Federal taxes have increased by more than $8,000 for the average Australian household, including a $5,000 income tax rise. Since 1996 household debt has increased by $50,000 per household. And the prospect of a 0.5% interest rate rise would increase repayments on the average home loan by $60 per month.

The Government must provide financial relief for Australian households and consumers. This is why Labor is committed to:

• tax relief for hard-working PAYE taxpayers;
• a superannuation tax cut for all working Australians;
• addressing the problem of high Effective Marginal Tax Rates and disincentive in the Australian economy;
• new programs and incentives to help Australian families save, especially for housing;
• making the health care and education systems more affordable; and
• strengthening the Trade Practices Act and private sector competition to hold down prices for consumers.