Federal Treasurer Josh Frydenberg says he understands the pain Australians are facing at the petrol bowser, and Tuesday’s budget will provide relief.
But Mr Frydenberg would not be drawn on whether the government is prepared to freeze or reduce the .
“I recognise that cost of living is the number one topic around the kitchen tables of Australians right now,” Mr Frydenberg told SBS World News.
“We will have cost of living relief in Tuesday night’s budget, it will be temporary, it will be targeted, it will be proportionate.”
When pressed about the exact measures in the budget, the treasurer said he was not prepared to get on the “sticky paper” before the documents are released.
The Coalition is also under pressure to confirm whether it will roll over the Low and Middle-Income Tax Offset (LMITO), affectionately nicknamed “The Lamington” by some economists.
The LMITO can reduce tax payable by up to $1,080 when eligible people file their tax returns.
“The Low and Middle Income Tax Offset was designed as a fiscal stimulus at a time when the economy had been hit by the greatest economic shock since the Great Depression,” Mr Frydenberg said.
“It was always meant to be temporary, it was not meant to be a permanent feature of the tax system.”
Labor's treasury spokesman Jim Chalmers said he is expecting some movement both on this tax break and fuel excise, adding that Labor was unlikely to stand in the way of such measures.
"The budget needs to help Australian families through difficult times and not just help the government through an election," Dr Chalmers told ABC's Insiders program.
Mr Frydenberg declined to say whether the budget would include any changes to existing parental leave provisions which allow 18 weeks at the minimum wage for the primary carer and two weeks for a secondary carer.
“We’ve got a series of workforce participation measures we’ve been rolling out in previous budgets, we’ll continue to roll out more on Tuesday night," he said.
He’s also defended the government’s decision not to fund superannuation contributions for the primary carer on parental leave.
“We do not have super right now on paid parental leave but we have made changes to our super system previously which is helping a lot of Australians get super when they previously didn’t," he said.
Mr Frydenberg argues the balance has been struck in this budget to ensure financial stimulus does not overheat the economy and put extra pressure on the Reserve Bank to hike the cash rate.
He said strong commodity prices and low unemployment has bolstered the budget bottom line, but he’s argued that should not stop Australia from standing up against coercive tactics from Beijing.
“We have been on the receiving end of economic coercion from China, it is an important trading relationship. Our economies in many ways are complementary,” he said.
Mr Frydenberg said the government would “continue to provide support as necessary” through international partners to “turn the screws” on Russian President Vladimir Putin and assist Ukraine’s war efforts.
He said he agreed with United States President Joe Biden’s though the White House insists Mr Biden was not calling for regime change and was instead preparing the world's democracies for extended conflict over Ukraine
“I don’t believe he should remain in power,” Mr Frydenberg said.
“He’s a totalitarian leader, he runs that country with an iron fist. This aggression against Ukraine is backfiring against him, it’s bringing countries around the world together to stand strongly against this form of violence," he said.
With AAP.
