Q: What about the specific question, if there is inflationary impact of these new tax cuts?

Chalmers:

We don’t believe there is for a couple of reasons. The timing, and a participation effect, we are encouraging more people into the workforce which is one of our key objectives but thirdly we think we have got the magnitude right to provide some top up tax relief to every Australian taxpayer but in the most responsible way we can. It is, as we are saying a course, preelection measure that sits alongside, I think, the $35 billion in preelection announcements that you have made since January.

Q: How are you going to pay all those promises for these tax cuts now sitting on top?

Chalmers:

Well, first of all a large number of those commitments we have announced over the course of the last few months were a provision for in the midyear budget update. Not all. Most of them were before tonight. The big mover has been the tax cuts, if you think about the net policies in the budget, $35 billion that is less then what our predecessors committed in their election point number one and half of that is the tax cuts, $17 billion in tax cuts and point number three is eight billion dollars of that 35 William dollars was already.