Labor hits back at critics by adding tax breaks to industry aid

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Chalmers backed the case for tax concessions in a new signal about the scale of the budget plan to help clean energy industries and local manufacturing.

Investors will be offered sweeping tax breaks and quick approvals to lure billions of dollars into major projects in the next phase of Labor’s bid to expand industry aid with a “made in Australia” economic plan.

Treasurer Jim Chalmers signalled that tax concessions would form a significant part of the Made in Australia plan.

The Coalition has warned against putting taxpayer cash into new schemes, however, by claiming that similar tax concessions in the United States have added to inflation. Chalmers said the government expected inflation to “moderate a bit more” in Australia despite signs of higher prices in the United States, although financial markets have pushed back assumptions about when the Reserve Bank may start cutting interest rates., superseding earlier calculations about a cut in November this year.

Former Productivity Commission chiefs have backed Wood on the key question, while Chalmers said he respected both.

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