Latest news with #BusinessDebate
Sky News AU
23-04-2025
- Business
- Sky News AU
Treasurer Jim Chalmers' big spending a 'very risky strategy', Warren Hogan declares, after IMF slashes growth forecast
Treasurer Jim Chalmers has taken a 'very risky strategy' with Labor's big public spending under the Albanese government, a leading economist has declared, as fiscal turbulence from United States President Donald Trump's trade war looms. The International Monetary Fund has downgraded its growth forecasts for Australia and many economies around the globe due to astronomically high tariffs between the US and China. Many in the Coalition criticised Labor after the report arose, as the IMF called for nations to strengthen economic buffers in the face of fiscal headwinds from the trade war. Judo Bank's chief economist Warren Hogan also criticised Labor's economic management when he was asked his thoughts on Mr Chalmers' performance as Treasurer over the past three years. 'He's done a good job at selling their story around trying to reorder the priorities of government, but he's also gilded the lily a little bit on a lot of this strategy,' Mr Hogan told Sky News' Business Now. 'The reality under this government is government spending has hit new record highs. 'It is a very risky strategy to essentially be taking all the benefits that we've had over the last 20 years from the mining boom and the commodity boom and these wonderful exports that we have had and then spending them.' He pointed to the indirect backlash Australia could face amid trade tensions between the two largest economic superpowers. It was forecast Australia's economy will suffer a $13b setback in 2025 and Aussies finally experiencing easing price pressures could see costs surge again due to President Trump's tariffs. Australia's growth has been downgraded by 0.5 per cent to 1.6 per cent, while the US' growth has been slashed by 0.9 per cent and global growth is projected to be half a per cent lower than if the President's tariffs were not implemented. 'As we're seeing in the last month, this trade war is serious and we're right in the middle of it,' Mr Hogan said. 'If we have any shock to our export markets because of what's happening between the US and China, if the demand out of China shrinks, the government's revenues are gonna get hit hard and then this question of can we afford it will come front and centre. 'I think our budget is very vulnerable to a significant blowout in this operating environment and we don't have any space for that because we are now in deficit.' Directing his sights back at the Treasurer, Mr Hogan called for Labor to reel in large government spending. 'I don't think the Treasurer's done a bad job, but I don't agree with the policy strategy,' he said. 'I think it's risky. I think we need to contain the growth of the size of government in this country.' Mr Hogan's call comes after the Treasurer and Mr Taylor locked horns at the Business Debate on Wednesday where cost of living, taxes, business investment, and much more took centre stage.
Sky News AU
23-04-2025
- Business
- Sky News AU
Federal Election: Treasurer Jim Chalmers, shadow treasurer Angus Taylor come to fiery blows in final debate
Treasurer Jim Chalmers and his hopeful Coalition counterpart Angus Taylor locked horns on Wednesday for the final economic debate of the Federal Election campaign where cost of living, taxes, business investment and much more took centre stage. Hosted by the Business Council of Australia (BCA) and the Council of Small Business Organisations Australia and moderated by Sky News host Laura Jayes, the pair made their respective parties' cases for how they can best manage the nation's economy over the coming three years during the Business Debate. It followed a heated debate on Sky News just weeks earlier where host Ross Greenwood moderated a fiery clash between the pair with requests for apologies over cost of living pains and scathing attacks lingering in viewers' minds. The chaos continued during Wednesday's debate where tensions flared up once again with bold accusations of lying and sparring on tax cuts. The global trade war While the debate focused on Australia's economy, it took place on the same day the International Monetary Fund revealed Donald Trump's trade war will pose a $13b hit to Australia's growth. Jayes kicked off the debate off with a question to both debaters on how they would handle the falling global growth. Mr Chalmers weighed in on the economic uncertainty that was on the cards for Australia and pointed to fiscal resilience as a major priority for Labor this election. "We came to office with real wages falling, living standards falling… we know there's more work to do, we need to be more resilient and that's what our economic plan is all about," Mr Chalmers said. He also touched on the wild market volatility that has seen share prices around the globe jolt in reaction to the US President's tariff announcements. 'The world economic outlook, which was released overnight, did paint a pretty concerning picture of the world's economy, which has been made more volatile and less certain,' Mr Chalmers said. 'Already we've seen those wild fluctuations on markets… as a consequence of those tariff announcements from Washington, DC. 'These escalating trade tensions are really the fourth major economic shock that we've been through over the last two decades. A financial crisis, a pandemic, a global inflation strike and now a global trade war. 'We are a very trade-reliant economy and we do have a lot to lose'. Mr Taylor called for slashing of red tape to bolster the local economy, citing business insolvency rates and low productivity as major points of concern for the Coalition. "The buffers are gone and we've got to rebuild, we've got to reset and make our economy resilient again. And the key to this, investment," Mr Taylor said. Tax policies Just weeks after each party pledged various ways to cut taxes in a bid to woo voters struggling with cost of living pressures, Mr Chalmers and Mr Taylor targeted their sights at each others' promises during the debate. Taxes for businesses were a particular concern for some in the audience as Rohan Mead, group managing director and CEO of healthcare company Australian Unity, asked both parties to guarantee there will not be new taxes or levies on businesses. 'We have absolutely no plans to impose taxes on Australian businesses like yours, and I think that it is essential that we bring taxes down, not raise them,' Mr Taylor said. 'That's why we'll raise the threshold for the instant asset write-off for small businesses and we'll make it permanent.' Mr Chalmers acknowledged the 'appetite for taxes to be lower". 'When you combine taxes at all levels of government, Australia is below the OECD average. We're in the high 20s,' he said. 'I heard Angus Taylor say the most important thing is not to raise taxes but to lower taxes. He's going to this election with a policy to raise taxes for 14 million Australian taxpayers.' Mr Taylor cut in: 'You're telling lies again.' The Treasurer shot back: 'You're going to this election with a policy to increase taxes on 14 million Australian taxpayers. That's reiterated by the Leader of the Opposition, you made the first big mistake of this debate in pretending it's not true, it is true. 'We're cutting taxes for 1.5 million small businesses and Angus wants to increase taxes on all of those people.' Mr Chalmers also asked the shadow treasurer what was incorrect about his statement before Mr Taylor laid out some key Coalition polices and then attacked Labor. 'You want to raise taxes - unrealised gains on superannuation - you're going after it,' Mr Taylor said. 'And we know he's done the work to go after negative gearing and capital gains tax.' The pair also butted heads on instant asset write-offs, with the Treasurer promising to extend them up to $20,000. Mr Taylor said the Coalition would life the write-offs to $30,000 and make them permanent. Industry and regulation The pair were also pressed on industrial relations, leading the shadow treasurer to attack the CFMEU, which previously held ties to the Labor Party. 'The CFMEU, with deep links to the criminal underworld, a militant union that's holding our construction sector to ransom, needs to be deregistered,' Mr Taylor said. 'We'll deregister it. Labor is not prepared to do that because they rely too much on the CFMEU. They have relied on it for tens of millions of dollars of donations.' Mr Taylor pledged to re-establish the Australian Building and Construction Commission, describing it as 'the tough cop on the beat'. 'We'll establish racketeering laws so that criminal activities by organisations, militant organisations like that, are not going to be acceptable in our economy,' he said. 'Because they hold every Australian taxpayer to ransom.' Mr Chalmers said Labor would look into non-complete clauses, with a vow to remove the clauses for workers earning under $175,000 per year, alongside examining modern awards and gender equality in the workplace. The shadow treasurer went on to tear into over regulation in Australia and claimed it was holding back the nation. 'Getting the expectations around our regulators right… is absolutely crucial,' Mr Taylor said. 'We are seeing regulatory overreach in this country and it is holding back investment. 'It is holding back productivity and it is holding back the prosperity of all Australians.' The debate came to a close with a question on artificial intelligence and the Treasurer lauding Australia as an ideal country to develop the emerging technology. He pointed to local energy production for the hefty data centres needed for AI, alongside the array of skills present in the population to bolster the industry. 'There's a lot of interest in Australia for data centres,' Mr Chalmers said. 'You need huge data centres to train the AI. Australia is a very compelling destination for that capital because of energy and skills and reliable laws. 'We've got space and we're in the best most dynamic region in the global economy.'
AU Financial Review
22-04-2025
- Business
- AU Financial Review
When business loses, Australia loses bigger
On Wednesday, the Business Council and the Council of Small Business Organisations Australia will host the Business Debate between Treasurer Jim Chalmers and shadow treasurer Angus Taylor.
