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Government tax binge pushes up inflation.



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LEADER OF THE OPPOSITION THE HON. DR BRENDAN NELSON MP

GOVERNMENT TAX BINGE PUSHES UP INFLATION

Official inflation figures released today confirm that the Rudd Government and its inflationary new taxes are contributing significantly to the cost of living.

After lecturing Australians about the importance of the fight against inflation, Mr Rudd has contributed to it through his $3 billion tax binge on RTDs and other new taxes.

Excluding the GST, today’s CPI figure of 4.5 per cent is the highest rate of inflation since the December quarter of 1995 when Labor was last in power.

After last year promising to bring down the cost of petrol, groceries and housing, today’s figures confirm not only that Labor has failed to deliver on this commitment, but that cost of living pressures are actually increasing as a result of Mr Rudd’s policies.

Since the election, fuel prices are up 14.6 per cent and rent is up 4.2 per cent. Prices overall have increased by 2.8 per cent, compared with a 1.7 per cent increase in the last six months of the Coalition Government.

Labor’s tax binge on RTDs has produced a 6.1 per cent increase in the price of spirits over the June quarter alone, directly contributing to inflation and upwards pressure on interest rates.

It is expected that inflation will further increase as a result of Labor’s tax hikes on cars, travel and transport by trucks.

Increases in the cost of private health insurance policies brought on by Mr Rudd’s gutting of Australia’s private health insurance system will add further inflationary pressures in coming quarters.

23 July 2008

www.liberal.org.au