Chalmers eyes biggest threat to Australia
Jim Chalmers says managing the risk to Australia's economic future from the global economic uncertainty is a priority as he gets back to work following Saturday's election.
The Treasurer has also revealed boosting productivity will be the focus of the Albanese government's second term, while still reining in inflation.
Appearing on ABC's Insiders following Labor's thumping victory, Mr Chalmers said he had been given a rundown by Treasury secretary Steven Kennedy at 6.45am on Sunday.
He said his 'immediate focus' would be on how the returned Labor government managed the risks posed by the increasingly volatile US and China relationship.
He said the 'spectrum of scenarios' posed by the global outlook was 'much broader' following the impact of Donald Trump's trade war. Jim Chalmers, voting with his family in his Logan seat of Rankin on Saturday, has already received a briefing from Treasury. NewsWire / Glenn Campbell Credit: News Corp Australia
Its impact on the Chinese economy will pose the biggest threat to Australia, with China being our biggest trading partner, accounting for about $212.7bn or 26 per cent of exports.
'We know that the direct impact on us from the tariffs is manageable and relatively modest but there is a huge downside risk in the global economy,' he said.
'I think what's happening, particularly between the US and China, does cast a dark shadow over the global economy and we're not uniquely impacted by that.' Treasurer Jim Chalmers says boosting productivity would be one of his key priorities in the Albanese government's second term. NewsWire / Glenn Campbell Credit: News Corp Australia
Although he said it would be the primary concern for 'every country,' he said he believed Australia was 'well-placed' to combat the issues.
'Global economic uncertainty really is the big influence on my thinking and my work on day one of a second term,' he said.
'We need to have the ability – and we will have the ability – to manage that uncertainty at the same time as we roll out our domestic agenda,' he said, naming Future Made in Australia, housing, energy, human capital and boosting competition.
Election result poll
Supercharging productivity, how the economy can do more and produce more without further spending, while not increasing inflation was another second-term goal.
Prior to the election, business groups had been calling for more government investment into boosting productivity, which covers policy areas like industrial relations, cutting red tape and boosting investment in key sectors.
'I'm looking forward to rolling out the changes we announced on a national regime for occupational licensing, the non-compete clauses change, the competition policy I'm working up with the states, revising national competition policy,' he said. Federal Treasurer Jim Chalmers says boosting productivity will be a priority in the Albanese government's second term. Annette Dew/ NewsWire Credit: News Corp Australia
'The best way to think about the difference between our first term and the second term that we won last night – the first term was primarily inflation without forgetting productivity.
'The second term will be primarily productivity without forgetting inflation.'
He also flagged a major Productivity Commission review due to report in the third quarter of this year.
Prime Minister Anthony Albanese, who led Labor to second term with a strong majority at Saturday's election, has already said Mr Chalmers would remain as Treasurer.
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"We in Australia understand that in today's uncertain world, what we need are partners and friends we can rely on." During the meeting, the leaders reaffirmed their commitment to the Vuvale Partnership, which emphasises both countries' shared goal of regional peace, security and prosperity. The prime ministers began preparations for the Pacific Islands Forum leaders' meeting, to be hosted in the Solomon Islands in September, which is expected to enhance co-operation within the region. While Mr Albanese's Pacific visit is expected to play second fiddle to a potential meeting with US President Donald Trump in coming days, regional issues such as security remain a key focus for Australia. The environment and climate change were also discussion points in Fiji as Australia bids to co-host the United Nations' climate conference with Pacific partners in 2026. "Fiji is one of the most important relationships for Australia in the Pacific Islands region," Lowy Institute Pacific Islands program director Mihai Sora told AAP. The nation had been able to delineate its security relationships with traditional partners such as the US, Australia and New Zealand while also protecting and promoting trade and economic ties with China and other parts of Asia, Mr Sora said. Mr Albanese was welcomed by a delegation and local marching band, which made him feel at home with a rendition of Advance Australia Fair, before attending a meeting and dinner with Fijian officials. However, the centrepiece of Mr Albanese's whirlwind trip will be the G7 summit, a gathering of seven of the world's largest advanced economies. Australia is not a member of the G7, but Canadian Prime Minister Mark Carney invited Mr Albanese. He is expected to meet with the US president on the sidelines of the conference, where he could try to carve out a tariff exemption. Australia faces 10 per cent tariffs on goods exported to the US and - like every US trading partner except the UK - has been hit with 50 per cent tariffs on aluminium and steel sent to America. The Australian government has called the trade measures an "act of economic self-harm" and is considering using critical minerals and US beef imports as bargaining chips. Mr Albanese has not yet confirmed whether he will meet Mr Trump, although other bilateral discussions have been organised with the leaders of Canada, the UK, South Korea and Japan. The prime minister is also expected to meet with business leaders in Seattle en route to the G7 to discuss emerging technologies such as artificial intelligence. The prime minister has stressed the importance of "trusted partners" in an uncertain world as major diplomatic talks loom. Sporting a teal and white island shirt, Anthony Albanese met with his Fijian counterpart Sitiveni Rabuka in Nadi on his first stop of a global tour. The meeting was their first since Labor's decisive re-election and Mr Albanese said the timing showed both nations were part of a "Pacific family". "You, my friend, are a trusted partner and friend of Australia," Mr Albanese told Mr Rabuka ahead of bilateral discussions. "We in Australia understand that in today's uncertain world, what we need are partners and friends we can rely on." During the meeting, the leaders reaffirmed their commitment to the Vuvale Partnership, which emphasises both countries' shared goal of regional peace, security and prosperity. The prime ministers began preparations for the Pacific Islands Forum leaders' meeting, to be hosted in the Solomon Islands in September, which is expected to enhance co-operation within the region. While Mr Albanese's Pacific visit is expected to play second fiddle to a potential meeting with US President Donald Trump in coming days, regional issues such as security remain a key focus for Australia. 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The prime minister has stressed the importance of "trusted partners" in an uncertain world as major diplomatic talks loom. Sporting a teal and white island shirt, Anthony Albanese met with his Fijian counterpart Sitiveni Rabuka in Nadi on his first stop of a global tour. The meeting was their first since Labor's decisive re-election and Mr Albanese said the timing showed both nations were part of a "Pacific family". "You, my friend, are a trusted partner and friend of Australia," Mr Albanese told Mr Rabuka ahead of bilateral discussions. "We in Australia understand that in today's uncertain world, what we need are partners and friends we can rely on." During the meeting, the leaders reaffirmed their commitment to the Vuvale Partnership, which emphasises both countries' shared goal of regional peace, security and prosperity. 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