The Barefoot Investor has warned that now is the time to “panic” for Australians with a mortgage for fear interest rates won’t fall soon.
Scott Pape sounded the alarm by blaming the Budget for the bleak advice he had been forced to give millions of homeowners.
Pape revealed in the run-up to the budget that he was avoiding it for the first time in 20 years, describing it as “poor man’s political theater on prime time”.
He redoubled his attack after its release on Tuesday, targeting a cost-of-living aid package in particular.
Barefoot Investor Scott Pape (pictured) has warned Australians with home loans to “panic” and be prepared to make tough decisions after the federal budget.
Treasurer Jim Chalmers announced that all Australian households, regardless of income, would receive a $300 rebate on their energy bills from July 1.
Dr Chalmers claimed that the payment for approximately 10 million homes would not increase inflation, but Mr Pape is wary of the comment.
‘I’m sure that James Packer “He is very happy to get $300 off his energy bill, despite his difficulties,” he wrote in a column for the Daily Telegraph.
He added that the Federal Treasury’s prediction that the payment will not increase inflation was made by “hundreds of the country’s smartest economic experts.”
“The Treasury has 123 years of experience (since 1901) working with the Government analyzing the impact of its policies, and officially forecasts that inflation will continue to fall,” Pape wrote.
“The problem is that their record of economic predictions is worse than my children’s marksmanship in the bathroom.”
The cash rate is currently at 4.35 per cent, while inflation sits at 3.6 per cent in Australia.
Pape said the best option for homeowners is to “panic…panic early.”
“Ask yourself what would happen if you lost your job, got sick, or interest rates went up,” he wrote.
“In other words, you need to do something Jimbo hasn’t been able to do: make some tough decisions right now.”
Pape said he was tired of the government’s prediction that the budget would not increase inflation, adding that homeowners should “make some tough decisions, right now” (file image)
The Barefoot Investor said it had “low expectations” for the budget, but federal Treasurer Jim Chalmers (pictured) “did limbo and went even lower.”
Top economists sang a similar tune to Barefoot Investor, with many saying the rebate and Stage 3 tax cuts would influence higher consumer spending.
More spending will only stoke inflation and maintain hatred of inflation rates, which in turn could push the economy into a recession.
Australian Economic Development Committee chief economist Cassandra Winzar said non-means-tested cost-of-living relief risks going against the central bank as the rich will simply waste the money. extra.
“Electricity rebates may ease overall inflation, but will boost spending in other sectors,” Ms. Winzar said.
Economist and budget expert Chris Richardson said the budget was expansionary, with $9.5 billion in new spending over the next 12 months.
“The government said it would not bring things forward, that it would be careful not to upset the inflationary bear, that it would put it in the back – they absolutely have it in the front,” he said.
