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AU: At least for now, we’re in the dark about the effect of stage three tax cuts on inflation
Will the stage three tax cuts worsen inflation? It's a question the government is reluctant to answer. The cuts have been subject to continuous debate since their conception in 2018, mainly over their fairness. But the separate question of whether they are inflationary has gathered momentum as the start date for the cuts (July 1) draws nearer at a time when inflation remains elevated. Treasurer Jim Chalmers this week repeated that the inflationary effects had been baked into Treasury's inflation forecast. But this sidesteps the fact that the government has not commissioned any specific modelling, as confirmed in a ... (full story)