Treasury estimated stage-three tax cut changes would add 0.1 percentage point to inflation
by Peter Hannam Economics correspondent from World news | The Guardian on (#6J40Q)
RBA hasn't modelled whether Albanese government's redistribution of tax cuts could add to inflation, but isn't expected to adjust its forecasts
Treasury has estimated the redesigned stage three tax cuts would add just 0.1 percentage point or less to annual price increases - too small to affect the trajectory of inflation.
Treasury analysed how the government's proposed changes to the distribution of the tax cuts - with those on higher incomes getting less, and lower incomes more - would affect consumption, along with other areas, such women's participation in the workforce. It deemed the changes to inflation to be small.
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