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The IMF lauds Australia’s soft landing and urges tax and spending reforms to sustain growth.
The International Monetary Fund has praised Australia’s economic management, highlighting a successful soft landing with declining inflation, a strong labor market, and resilient growth, while supporting the Reserve Bank of Australia’s cautious monetary policy.
It commended the Albanese government’s early productivity and budget reforms but urged deeper tax changes—such as reintroducing a resource tax, cutting personal income tax, and shifting from stamp duty to land taxes—to boost investment, improve housing supply, and reduce inequality.
The IMF warned of rising state debt and called for better fiscal coordination, curbs on spending in aged care and the NDIS, and reforms to housing tax breaks.
It advised the RBA to hold off on rate cuts unless data signals a sharper slowdown and reiterated the need to repeal the treasurer’s power to override the central bank.
Treasurer Jim Chalmers welcomed the report as validation of Labor’s economic stewardship.
El FMI elogia el aterrizaje suave de Australia e insta a las reformas fiscales y de gasto para mantener el crecimiento.