Labor and the Coalition are adding home loan interest rate pressures by promising tax cuts
25/11/2011 
Comments Off
The Australian Democrats are warning CPI figures released today highlight problems with the major parties’ tax policies.
The Consumer Price Index (CPI) figures show a slight rise of 0.7 per cent for the September quarter but the Reserve Bank’s key measure of underlying inflation is up 0.9 per cent in the quarter to be 2.9 per cent higher over the year.
[ad#home-loans-468]
Democrats leader Lyn Allison says while the proposed tax cuts do not affect the inflation figures, they do point to future dangers.
“We are already at the upper end of the Reserve Bank’s inflation target and the self-proclaimed economic conservatives of Labor and the Coalition have now pushed us even closer to future home loan interest rate rises,” she said.
“That is the last thing struggling families need.”
Senator Allison says Australia now faces the prospect of a rate rise when the Reserve Bank board meets in November and another potential rise after tax cuts in July next year.
“Both parties have added to that interest rate pressure with their shameless vote buying,” she said.
“Treasury has warned about election campaigns triggering bad policy decisions and true to form they [the major parties] are both rolling them out.
Senator Allison says the Coalition and Labor should stop talking about their economic credentials and focus on what Australia needs.
“Re-direct expenditure to where it is badly needed – in health and education,” she said.
“Restrict tax relief to low income pensioners, carers and working Australians.
“$34 billion worth of pork-barrelling plus many billions more without adequate attention to inflationary pressure means we’ll all end up paying for it in the end.”
Source: ABC
Rick Adlam has been helping clients with home loan finance since 1985 when he was home consultant with AV Jennings. Rick started Equity Home Loans in 1996 to help homeowners become property investors. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers.
|
Comments are closed.