However inflation is still within the Reserve Bank s inflation target of 2 to 3 per cent. Tax reform will also have a one-off effect on inflation. However, this impact will not last and the inflation rate is expected to settle back into the Reserve Bank s target range. The Government s fiscal strategy remains on track with the Budget in surplus again this year for the fourth year in a row. The Commonwealth should be debt free by 2003-04.
Debt reduction frees up money to be spent on more worthwhile purposes.
The Government s fiscal record is all the more remarkable considering that the rates of income tax, company tax, wholesale sales tax and petrol excise have not been increased. Farmers and other businesses benefit from this downward pressure on interest rates. While international changes in interest rates puts pressure on our domestic rates, we continue to enjoy very low rates in some cases, the lowest rates for 30 years. We also expect strong jobs growth - 650,000 new jobs have been created over the past four years. By June next year, unemployment is forecast to be 6.25 per cent.