Q: You mentioned that Labor’s spending is inflationary. Don’t the facts show that they haven’t been inflationary?

Taylor:

The IMF are telling us they expect inflation to surge 3.5 %. Labor’s own numbers have inflation rising. That is the truth. The thing we know about inflation is you have to keep at it. It can come back and it can come back very fast.

We saw that in the last surge in the ’70s and ’80s. That is why we need to be focused on making sure we have a stronger budget position and Labor’s which we do. Most importantly, we are growing the economy, encouraging investment, getting growth and investment by backing small business.

That is what we’re doing in economic plan. The Instant Asset Write-Off, the entrepreneur accelerator, all these things to give people the confidence to invest in this country.

We know that growth in productivity and we know that strengthening budget position that we have laid out here. It will not only reduce the risk of inflation, but improve prosperity and budgets of households which have been under so much pressure.