Cost of living relief in the budget may harm this one aspect of the economy

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Cost of living relief in the budget may harm this one aspect of the economy
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The government has hinted it might raise JobSeeker payments, but this could contribute to inflation, economists say.

. Others will be interested in whether changes to any other social services payments, funding allocations, tax breaks or other budgetary measures will benefit them.

Ms Hume told Nine's 60 Minutes that "some targeted relief for people, particularly those on very low incomes, or rent assistance for those with very high rents, would be acceptable. "There's a broader issue that if the RBA is raising interest rates, but the government is spending lots of money, then two arms of economic policy are working against each other.

When the previous government rolled out billions of dollars in JobKeeper payments as the coronavirus pandemic forced businesses to a standstill in 2020, it had the unintended consequence of contributing to rising inflation, according to economics professor at University of New South Wales Gigi Foster.

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