‘No more excuses’: Labor blasted for pouring ‘debt petrol’ on the ‘inflation fire’

‘NO MORE EXCUSES’: Tim Wilson Accuses Labor of Pouring ‘Debt Petrol’ on Inflation Fire

The war over the federal budget has exploded — with Shadow Treasurer Tim Wilson unleashing a blistering attack on the Albanese government’s economic management.

Wilson claims Labor has been “pouring debt petrol on the inflation fire,” arguing that mounting deficits and high spending are fuelling price pressures across the economy.

His remarks come as the Prime Minister reportedly pressures ministers to find savings, despite Treasurer Jim Chalmers previously insisting there was “no spending problem.”

“Reality has caught up with the government,” Wilson said, suggesting internal tensions are now surfacing over fiscal strategy.

Spending at 40-Year High

Wilson pointed to federal spending sitting at roughly 26.9% of GDP — the highest level outside of the pandemic in four decades — calling it “entirely unsustainable.”

He argued the first step should be cracking down on corruption and waste, including alleged rorting within the CFMEU and fraud within the NDIS.

“Stop the corruption first,” he said. “Then look at prudent savings.”

Labor has not accepted those characterisations, but the political clash signals a fierce pre-budget battle ahead.

Capital Gains Tax Fight Heats Up

The debate has also reignited over potential changes to the capital gains tax (CGT) discount.

Wilson rejected proposals to wind back the discount, arguing it would not meaningfully increase housing supply — a claim he says Treasury modelling supports.

“Increasing taxes isn’t going to incentivise new housing,” he said, warning that higher taxes on investors could ultimately push rents up as costs are passed on.

The Coalition maintains it will “always be the party of lower taxes,” framing any CGT changes as a housing tax rather than housing reform.

Intergenerational Fairness Row

Wilson was also pressed on previous comments about intergenerational inequality and tax settings.

He reiterated his long-standing view that Australia’s top marginal income tax rate — 47 cents in the dollar — is punitive and unfair to younger Australians whose primary asset is their labour.

Interestingly, Wilson noted that former Labor heavyweights Paul Keating and Bill Kelty have also criticised high marginal income tax rates.

Lodge Security Threat

The heated economic exchange unfolded just hours after Prime Minister Anthony Albanese was evacuated from The Lodge following an alleged security threat.

Wilson struck a measured tone on that issue.

“I wish the Prime Minister and his family safety,” he said. “Violence is never the answer.”

As political tensions rise over debt, inflation and housing, both sides appear determined to sharpen their attacks — but at least on one point, there was agreement:

Australia’s democracy must remain robust — and peaceful.