Australia’s budget is banking on wages outpacing inflation and interest rates, but not by too much

Coalition is relying on an assumption budget handouts such as fuel excise relief won't fan inflation

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Australia's near-term economic fortunes hinge largely on household incomes rising at a faster pace than inflation but not so fast that they prompt an overly rapid series of interest rate increases by the central bank, according to the 2022-23 federal budget.

The delicate balance is at the heart of a budget - and election campaign - strategy that relies on an assumption additional handouts in the form of fuel excise relief and an expanded tax offset for mostly middle-income taxpayers don't fan inflation further.