Opposition pushback on the government’s economic policy has prompted a spirited defence of Labor's record by Treasurer Jim Chalmers.
Peter Dutton claimed the government’s two budgets since last year’s federal election had driven inflation up, something Dr Chalmers declared showed a lack of “economic credibility”.
“ABS statistics in the week just gone showed our child care, energy rebates and rent relief meant inflation was around half a percentage point lower than it would have been without them,” the treasurer said in a statement on Sunday.
“Not only is Dutton wrong but he and the Coalition actually voted against cost-of-living relief - which means inflation would be higher today if they had their way.”
Australia’s CPI jumped 1.2 per cent in the September quarter, factoring in to a 5.4 per cent annual rise.
Mr Dutton had been asked about a potential interest rate rise on Melbourne Cup day, believing it would bring a 12th rate hike under the Labor government.
He also said Australians were paying “15 per cent more tax” under Labor, labelling the government “an almighty mess”.
“The government's had two budgets where they've had the ability to make decisions which would ease the pressure on inflation and therefore bring interest rates back," Mr Dutton told Sky News.
"They haven't done that, in fact, they've added to the inflationary pressures.
“Australians are feeling that at the moment, they understand exactly what's happened over the last 18 months, they feel a great frustration.”
Dr Chalmers said the tax claim was “misleading”, saying the government had received the greater amount of tax revenue because more people were in work.
“It’s disappointing but not surprising he doesn’t know the difference between tax rates and the total tax take which factors in more people working,” the treasurer said.
“The fact is under the Albanese Labor government, more Australians are working and they are earning more - that’s good for workers and good for the budget.”
