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National cabinet will convene with the federal government set to unveil a new fuel security package as it prepares to hand down the federal budget next week. The treasurer says inflation will be taken seriously and has ruled out extra stimulus, following the reserve bank's decision to raise interest rates for a third time this year. Jim Chalmers also hasn't confirmed whether the government will provide the one-off tax cut to Australian workers with Reserve Bank Governor Michele Bullock warning yesterday any further cost of living measures would make her job more difficult.

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00:01The Treasurer Jim Chalmers has said that it'll be unveiled by the Prime Minister and Energy
00:06Minister Chris Bowen later today. That's after the Prime Minister meets with state and territory
00:11leaders as part of National Cabinet. He says it'll focus on supply chain resilience and
00:16also ensuring more fuel for motorists and industry. But beyond that, pretty light on
00:21details. Of course, Australia's fuel supply and how we import so much of it has really
00:27been under the spotlight since the war in Iran. We've seen leaders here in Australia travel,
00:33particularly throughout Asia, to try and shore up energy supplies. So we should have more
00:38details on that package, which will be part of the budget this afternoon.
00:42That decision yesterday by the RBA to hike interest rates, how is that going to play into next
00:47week's budget?
00:48Yeah, look, this is pretty much a warning from the RBA Governor Michelle Bullock to Jim Chalmers.
00:53She's saying that the RBA has used the tool it can to try and tame inflation, of course,
00:59being a rate hike, the third this year. But now it's up to the government to ensure it doesn't
01:04do anything else to add to inflation. So we've heard from the Treasurer this morning, he was
01:10quite sort of defensive, saying that this was really a hypothetical situation and that the
01:15budget won't add all this extra stimulus. He says it'll be very responsible.
01:21The budget won't be pumping a lot of extra stimulus into the economy. In fact, overall,
01:25we'll be winding back spending in the budget. We've made that clear already. And so that
01:31hypothetical question, based on that budget speculation, the Governor did her best to give
01:37an in-principle hypothetical answer to that question.
01:40So this discussion about handouts might be really hard for people to hear, particularly, you know,
01:46depending on the size of your mortgage. Since the start of the year, it could have gone up three,
01:50four, five hundred dollars a month. So people are paying a lot more as a result of these
01:55interest rate hikes. But the Reserve Bank Governor, Michelle Bullock, says that the country really
02:00needs to get on top of inflation now before it gets even worse.
02:04The government still isn't ruling out this one-off tax break. What do we know about that?
02:09Yeah, this was reported yesterday in the Australian newspaper. And there've been lots of questions
02:13about it since. But the government isn't ruling it in or out, just saying that it's just more
02:17speculation ahead of a budget, which it says is typical, and says that sometimes that speculation
02:23is right, sometimes it's wrong. So we don't have too much detail about that, other than
02:27the report in the newspaper suggesting it'll be a tax offset for workers between two and three
02:33hundred dollars. Now, Angus Taylor, the opposition leader, was asked on the ABC this morning about
02:38if he would support or oppose extra cost of living measures.
02:43A couple of hundred bucks a year is not going to make the difference. Labor keeps talking
02:47about putting a bandaid on a bullet wound.
02:50That's Angus Taylor speaking there, so saying he still would need time to assess any policy
02:55that ends up being part of the budget.
02:57And plans for the Melbourne to Brisbane Inland Rail have been shelved. What's gone on there?
03:02Another budget measure here, Gemma. So essentially, this was supposed to be this big freight corridor
03:09between Melbourne all the way up to Brisbane. But the federal government has said this morning
03:14that it is costing so much more than it was expected, blown out to $45 billion, which is
03:20three times the current budget allocation. So work to Parks, the town in New South Wales,
03:26which is sort of halfway up New South Wales, that will continue and that should be delivered
03:32by the end of next year. So that'll allow double stacked freight between Melbourne and Perth,
03:38of course, going via parks there. But really a big announcement coming from the federal government
03:43because it's something that it's really talked up before this inland rail.
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