Today’s National Accounts shows the former Coalition Government left the economy in a very strong financial position with economic activity increasing by 0.9 per cent in the June quarter and real GDP growing by 3.6 per cent over the year to June.

The fundamentals for the economy are solid. The challenge for Labor is how it responds to rising inflation and the current cost of living crisis to ensure this strong economic performance continues.

Under the Coalition’s management we saw the largest budget turnaround in 70 years – a more than $100 billion improvement.

The big test for Labor will be its October Budget. If the Government was serious about addressing the cost of living crisis, it would reconsider its unnecessary $45 billion in off-budget spending and the $18 billion in on-budget spending.

Monetary and fiscal policy need to work together but Labor is only promising additional budget spending.

Labor does not have a good track record of managing money.

Instead of excuses, Australians need a plan from Anthony Albanese. Labor is in Government now – the buck stops with Labor.

If the Government doesn’t have a clear economic plan, the Reserve Bank will have no choice but to raise interest rates even higher.

Today’s data shows household spending is up but their capacity to save is going down which will make it even harder for homeowners to stump up more cash to keep pace with rising interest rates.

It is now up to the Labor Government to ensure the economy continues to grow in a prudent and sustainable way and the RBA isn’t forced to step in with large rate rises to cool inflationary pressures as has been the case since Labor was elected.