The federal election campaign has been dominated by interest rates as the major parties jockey to politically benefit from the outcome of a central bank policy meeting.
The Reserve Bank of Australia is tipped to announce a cut to the official cash interest rate to a historic low of 2.50 per cent, from 2.75 per cent, at 2.30pm (AEST) on Tuesday.
Opposition Leader Tony Abbott says this will show economic activity is "almost non-existent" under Labor.
Prime Minister Kevin Rudd has questioned why the coalition appears to think low rates aren't good for households.
Shadow treasurer Joe Hockey says interest rates on average "should be lower" under a coalition government, pointing to the Howard government's record.
"But if interest rates come down today it is because the economy is struggling, not because it's doing well," Mr Hockey told ABC radio.
"Kevin Rudd does not understand economics and he has a treasurer with an L-plate on."
Mr Abbott, campaigning in the NSW seat of Dobell, declined to say whether interest rates would be lower under the coalition than under Labor.
"We are not going to chloroform the economy," he said.
"Sure, interest rates are low but economic activity is almost non-existent.
"What I say is the economy will always be stronger under a coalition government, taxes will always be lower, government spending will always be lower ... because we understand the job of government is not to burden people but to support people."
Mr Rudd told reporters in Brisbane, after a morning debating local candidates in his seat of Griffith, Mr Abbott and Mr Hockey were at odds over interest rates and the economy.
"What we've seen on the question of the alternative government today is nothing short of a shambles on economic policy," he said.
Both Mr Rudd and Mr Abbott will head to Canberra on Tuesday afternoon for the opening of an Afghanistan mission exhibition at the Australian War Memorial.
Mr Abbott used his visit to Dobell to highlight the impact of the carbon tax and fringe benefits tax changes on cost of living pressures faced by families.
Mr Abbott said families would be $3000 better off over the next six years as a result of the coalition's plan to scrap the carbon tax.
The projected saving is based on the coalition's calculations of the impact of a rise in the carbon price to $38 a tonne by 2019 and to $350 "over time".
The coalition also zeroed in on Labor's links to the Australian Greens, saying it's failed to follow suit on a promise not to do any deals to form minority government should the September 7 election result in a tie.
"We all know what deals with the Greens mean: it means betrayals, broken promises ... indecisive government," Mr Abbott said.
Mr Rudd said the coalition should preference Labor ahead of independents and minor parties in every seat if it was serious about its position.
