Former Australian Council of Trade Unions (ACTU) president Bill Kelty has delivered a stinging critique of the federal government's economic management, describing current fiscal policies as a "policy of lunacy and stupidity." In a written submission to a parliamentary inquiry examining legislation for the nationwide distribution of cash, Kelty argued that excessive taxation and spending are driving a decline in household living standards.
The intervention by a prominent Labor luminary signals intensifying internal pressure on Prime Minister Anthony Albanese's government.
Kelty's remarks come as recent economic data has highlighted a growing disconnect between Treasury's optimistic projections and the deteriorating reality on the ground, with indicators suggesting that fiscal strategy is failing to support household budgets.
This sharp rebuke follows earlier calls from former Prime Minister Paul Keating, who has urged the government to merge Australia's private superannuation system with the public social security agency, Centrelink.
Together, these criticisms from senior figures within the Labor movement reflect a broadening consensus that structural reforms are needed to address cost-of-living pressures.
Markets are likely to monitor the political fallout from these statements, as sustained criticism from union leaders could complicate the government's ability to implement further fiscal measures.