Sky News Political Editor Andrew Clennell says the Albanese government is in a “world of hurt” and is “in trouble” at the next election.
The federal government could be exploring its options ahead of possible changes to negative gearing and capital gains tax.
An anonymous government source says Labor has sought advice from Treasury on the possible changes which it could take to the next election.
“The difficulty for these guys is they want to keep going to spending and that fuels inflation,” Mr Clennell said.
“They need to do something along the stage three tax cuts line, but bigger and better, and they need a rate cut.
“They’re in a world of pain, the government.
“Let’s face it: if your primary vote is 31 and the Reserve Bank Governor’s out there yesterday saying there’s no rate cut for ages and your low inflation number today is BS, then you are in trouble.
“These guys are in trouble at the moment.”
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