Prime Minister Kevin Rudd says work on the looming budget is "tough as all hell", committing himself yesterday to quelling the three electoral flashpoints of increasingly expensive mortgages, petrol and groceries.
With cabinet meeting and the budget now only a fortnight away, Mr Rudd declared yesterday, "This is a Government that believes in standing up for the interests of working families."
He again emphasised that his promised $31 billion cuts to personal income tax would be delivered in full "despite quite considerable pressure in the first several months of this year to drop our commitment".
Similarly, promised changes to the child-care tax rebate, lifting it from 30 per cent to 50 per cent from the middle of this year and paying it quarterly instead of annually, would go ahead.
"We believe that working families are under financial pressure, not least from recent increases in mortgage payments, but also what's happened with petrol prices and what's happening with grocery prices," he said. "Therefore, our commitment is to do everything we can through the budget to assist."
The Opposition increased pressure on the Government over petrol, with shadow consumer affairs minister Luke Hartsuyker calling for a Senate inquiry into the Government's planned FuelWatch scheme, which is supposed to lock in service stations to selling petrol at a specific and previously published price for a 24-hour period.
Mr Hartsuyker said there were genuine concerns the FuelWatch scheme could actually increase the price of fuel for motorists.
"Since the Government announced the planned national FuelWatch scheme, many organisations have expressed reservations about its capacity to deliver cheaper fuel ..." he said. "How is it in the best interests of motorists to prevent service station owners from reducing the price of fuel during the day?
"How is it in the best interests of motorists to prevent service station owners from offering intraday discounts?"
The new scheme copies one operating in Western Australia, which Mr Hartsuyker said might have unforeseen consequences.
"In the eastern states there are more refineries, suppliers and wholesalers in a market which is much more diverse than other states, such as Western Australia," he said. "The impact, therefore, of FuelWatch in Perth could be substantially different to that of Sydney, Melbourne and Brisbane."
Treasurer Wayne Swan has flagged that mothers who work to help pay off mortgages and cover household bills would be $3600 to $7000 a year better off after the budget, thanks to the child-care rebate and the tax cuts.
Families Australia chief executive Brian Babington welcomed the moves, reported at the weekend, but Women's Electoral Lobby chairwoman Eva Cox said some mothers might miss out.
"Because they haven't got a child in child care or because they fall outside those particular income brackets, they're not going to be helped very much at all," she told ABC radio.
Mr Swan said, "If you're a working mum with two children in child care working two days per week there could be relief up to $71 per week, and if you're a mum working five days per week with two children in child care relief up to $136 per week."