Labor has attacked the Morrison government's recent budget and claimed it will bake in higher prices within the economy.
In a speech seen by The Canberra Times, Labor's Treasury spokesman Jim Chalmers in a pre-election pitch at the National Press Club will claim the economic management of the Coalition will lead to stagnating wages and inflation risks could be baked into prices.
Dr Chalmers said clinging to the "status quo" during the uncertainty sparked by the pandemic would dent the long term strength of the economy, urging for reform if Labor made government at the next election.
"The most damaging thing Australia could do right now, the biggest economic and social harm we could inflict, would be to accept flatlining wages, soaring prices, tepid investment and weak growth - as our best case scenario, our new normal," an excerpt of the speech reads.
"That's not stability, that's stagnation."
Dr Chalmers will also reinforce Labor's five point economic plan which includes spending injections for aged care and reductions in the cost of child care.
Labor's plan also pledges fee free TAFE places and prioritising domestic manufacturing in regions to boost jobs and employment outcomes.
He claimed the plan is fully costed.
"The economic strategy, the fiscal strategy, that we will run alongside our white paper on the labour market and our review of the Reserve Bank and the intersection of fiscal and monetary policy," he said. "Our plan for economic growth invests in the future, targets cost-of-living pressures and supports sectors that will improve our lives, create more secure new jobs, and grow our economy."
The federal budget last week outlined a $20.9 billion improvement in the underlying cash deficit to $78 billion, with the improvements largely attributable to higher commodity prices.
Economists also expressed concern after the budget that the stimulus announced to ease the cost of living would put greater pressure on inflation.
Labor also attacked the Coalition of $3 billion in secret spending cuts.
Dr Chalmers will also use his speech to blast Treasurer Josh Frydenberg's budget as having "no vision" and a ploy to win cheap votes at the next election.
"The relief in this Budget isn't even enough to make up for the more than $3200 fall in real wages for the average worker these past two," he said.
Sign up for our newsletter to stay up to date.