ABC News Daily How to beat inflation without rate hikes
May 10, 2026
Chris Richardson, an independent economist who studies inflation and policy, explores alternatives to rate hikes. He discusses diverting wages into super to reduce spending. He examines temporarily lifting GST, shifting income tax, government offsets, and limits on corporate markups. He also argues for rethinking the inflation target while explaining why interest rates remain the default tool.
AI Snips
Chapters
Transcript
Episode notes
High Household Debt Makes Rate Moves Painful
- Australia has high household debt so interest rate moves hit borrowers hard and shape living standards.
- Chris Richardson notes cutting rates looked safe earlier but rising inflation meant those cuts left households worse off when rates then rose again.
Temporarily Increase Super To Reduce Spending
- Use higher compulsory super contributions as an alternative way to reduce spending today by diverting wages into long-term savings.
- Richardson explains this is essentially deferring pay so people have less money to spend now, cooling demand.
GST Hike Shifts Pain To Shoppers
- Raising the GST temporarily can curb spending by making shopping more expensive and thus lower demand.
- Richardson warns higher GST would lift shop prices immediately and disproportionately hurt lower-income households.