The Bottom Line
Updated Tuesday 3 November 2026
Finance Minister Katy Gallagher told ABC Insiders the government cannot promise its December mid-year budget update will contain more savings than new spending, citing pressures in health, aged care and defence. RBA chief economist Sarah Hunter said, as reported by the ABC, that state and federal government spending was 'definitely' contributing to demand pressures in the economy.
The RBA cash rate sits at 4.60 per cent following four rises this year, from 3.60 per cent at the start of 2026. The Guardian reports the Reserve Bank was poised to lift rates again at its Tuesday meeting, with voters increasingly blaming government spending rather than global factors for high inflation.
MacroBusiness, citing an AFR analysis of departmental annual reports, reports that Australian Public Service staffing costs have blown out significantly, with further increases expected from upcoming enterprise bargaining agreements.
Liberal MP Garth Hamilton told ABC Insiders he believes he has majority support in the party room to rule out early superannuation access for first home buyers, a policy the Coalition took to the past two federal elections.
Every figure is checked against official data or attributed to the body that announced it. Past editions