Labor will go ahead and deliver its billions of dollars in tax cuts, confident it will ease inflation.
Party factions are pushing the Government to invest the $31 billion into much needed services, and not risk fuelling another interest rate rise.
Assistant Treasurer Chris Bowen says Labor will be extremely careful to keep the figures in check.
“Our first effort has to be to put downward pressure on inflation, and downward pressure on interest rates.”
“These tax cuts encourage more people into the work force, and are very important for the long term economic wellbeing of the nation.”