Stage three tax cuts won’t be ‘big enough’ to fend off interest rate cuts fears: Gareth Aird

Head of Australian economics at Commonwealth Bank Gareth Aird fears the government’s proposed stage three tax cuts won’t be “big enough” to fend off interest rate cuts. “Our view at the moment, based on the stage three cuts - is they won’t be big enough in size to fend off interest rate cuts later on this year. “That’s obviously subject to what could change in terms of what the governments thinking in terms of tax relief. “If for example we were to see a big tax cut delivered to lower-middle income in Australia then we would have to feed that into our economic forecast, and that could potentially change our view of when our Reserve Bank cuts rates.” The Albanese government have hinted at stage three tax cuts that will apply to “everyone.”