Title: Back-to-back budget surplus to "strong economic management" claims

Caption: Next year's federal election will be dominated by the health of the economy under Labor in the face of interest rates that look like staying higher for longer and stubborn inflation. Treasurer Jim Chalmers has confirmed sa back-to-back budget surplus with last financial year's confirmed at a higher $15.8 billion. But do Australians care if the budget is in surplus or deficit and will claims of responsible economic management sway voters next year?

Reporter: Peter Ryan, Senior Business Correspondent

Featured: Josh Frydenberg, former Treasurer (archive); Jim Chalmers, Treasurer; Jackie Lambie, independent senator; Dr Brendan Rynne, KPMG chief economist

Next year's federal election will be dominated by the health of the economy under Labor - in the face of interest rates that look like staying higher for longer .. and stubborn inflation.

So it's probably not surprising that when the federal government has any good economic news to push, they'll be running hard.

And that's the case this morning the Treasurer spruiking a back to back budget surplus - though falling tax revenue from weaker commodity prices and a slowdown in China means the good news won't last.

As the federal government and economists debate ways to ease the housing crisis, the Reserve Bank is warning that falling interest rates could trigger a renewed real estate boom.

The concerns raised in the RBA's Financial Stability Review caps a week of speculation about possible policy changes on negative gearing and capital gains tax discounts as ways to ease the housing crisis.

The prime minister Anthony Albanese is continuing to walk back speculation that his government will take changes to negative gearing and capital gains tax discounts to next year's election.

Mr Albanese says he has "no plans" to tweak the tax breaks for property investors .. but the story is refusing to die as a debate over broader tax reform intensifies given the housing supply crisis.

Also OECD secretary-general Mathias Cormann sees "green shoots" as inflation slows, allowing central banks to cut interest rates.

"I have no plans to do it" - PM slaps down negative gearing changes on 2GB by Peter Ryan

Prime Minister Anthony Albanese has refused to emphatically rule out changes to negative gearing and capital gains tax discounts ahead of next years election. Reports this morning that Federal Treasury is reviewing the current tax breaks have fuelled speculation that the Albanese government might revisit similar policy tweaks that contributed to Labor's election loss in 2019.

Reporter: Peter Ryan, Senior Business Correspondent

Featured:

Anthony Albanese, Prime Minister;

Jane Hume, Shadow Finance Minister;

Aruna Sathanapally, CEO, Grattan Institute

Changes to negative gearing and capital gains tax discounts have been downplayed by a spokeperson for Treasurer Jim Chalmers. The Age and Sydney Morning Herald report that federal officials have started work on options to scale back the tax breaks on housing investment. Also, Reserve Bank governor Michele Bullock says this morning's monthly inflation outcome will be distorted on one-offs including federal and state energy subsidies which will take headline inflation artificially lower.

Reporter: Peter Ryan, Senior Business Correspondent

Featured: Jane Hume, Shadow Finance Minister; Michele Bullock, Reserve Bank governor

Reserve Bank governor Michele Bullock is facing a major communications challenge later today when she's widely expected to leave interest rates on hold at 4.35 percent.

Ms Bullock has previously warned a interest rate cut is unlikely until next year given still-high inflation and a resilient jobs market.

Also will Coles and Woolworths apologise the alleged deception on discounts or strike a settlement with the ACCC to cauterise the damage?

Breaking news - ACCC taking Woolworths, Coles to court. Allege consumers were misled on discounts. by Peter Ryan

Supermarket giants Woolworths and Coles are being taken to court for allegedly misleading consumers about price discounts on hundreds of products. The Australian Competition & Consumer Commission claims consumers have been duped by promotions about discounts that were "illusory". The Federal Court action comes as Australians continue to hurt from then high cost of living and allegations earlier this year that supermarkets have been price gouging.

Reporter: Peter Ryan, Senior Business Correspondent

Featured: Gina Cass Gottleid, ACCC chair; Nick McKim, Greens senator

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