Albanese Says No Major Cuts to Health and Education as Budget Savings Needed

Prime Minister Anthony Albanese told parliament that the December mid-year budget update will include savings but will not involve large cuts to health, education or other essential services. He said the government will continue to meet in the coming weeks to identify appropriate savings, adding that “what we won’t do is rip tens of billions of dollars out of health and education. That’s what happened last time when the Coalition came into office.”

Albanese faced criticism from opposition members and some business groups, who argue that the government’s spending is contributing to the cost-of-living squeeze. He accused the Coalition of hypocrisy for opposing the government’s proposal to reduce the private health-insurance rebate for people over 65, a measure projected to save about $3 billion over four years.

Treasurer Jim Chalmers blamed a faster-than-expected private-sector recovery and a global fuel price shock for the latest rise in headline inflation to 4.3%, which could prompt another interest-rate increase. Transport costs have risen 8.7% over the past year, while food prices are up 3.2% and housing costs 5.2%.

Within Labor, some MPs have called for stronger action, including price caps on staple groceries such as bread, milk, meat and fresh produce. The opposition’s shadow treasurer Tim Wilson said the budget proposals are “forcing Australian families to pay more for everything.”