Treasurer Jim Chalmers could save $2.1 billion by axing the government’s flagship electric vehicle subsidy, which has blown out to 15 times its forecast cost, and is no longer deemed necessary by economists as soaring petrol prices drive uptake of battery-powered cars.
Chalmers is facing pressure to find savings in the upcoming mid-year budget update, as the government braces for the release of September quarter inflation figures on Wednesday and a likely rate rise by the Reserve Bank of Australia next week.
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