Latest news with #Chalmers
Perth Now
3 hours ago
- Business
- Perth Now
Australia urges economic engagement amid uncertainty
In the face of extreme uncertainty, collaboration will be top of mind as the treasurer prepares to meet with leaders from some of the world's most important economies. Days before the first parliamentary sitting week of Labor's second term, Treasurer Jim Chalmers is set to head to Durban in South Africa for a gathering of finance ministers and central bank governors from G20 countries. As conflict in the Middle East, Eastern Europe and the threat of US tariffs continue to shake global markets, Dr Chalmers said there has never been a more important time to collaborate, noting the international economic environment would shape domestic policy. "We are navigating a world where volatility, uncertainty and unpredictability are now the norm, not the exception," he said. "Subdued global growth, extreme uncertainty and fragmentation demands more engagement, more collaboration and more resilience and that's what guides our strategy." He has also stressed the importance of free and open markets, and will prioritise strengthening ties and bolstering supply chains in his meetings. Australia has not yet received a tariff letter from the US president, but Donald Trump has imposed a baseline 10 per cent tariff on most of its goods and a 50 per cent levy on steel and aluminium. The federal government has floated using critical minerals as a bargaining chip to try to carve out a tariff exemption and Dr Chalmers confirmed he would discuss the resource with other countries' leaders at the event. He is also expected to meet with his counterparts from Japan, Indonesia, Canada, the UK, South Africa and Germany, many of which will have a higher tariff rate imposed on their goods from August 1. "The Australian economy is not immune from global uncertainty but we are well-placed and well-prepared to face the challenges ahead," Dr Chalmers said. All of this would form the backdrop to Labor's second-term economic agenda, which includes ambitious goals to boost flagging productivity. The coalition has signalled a willingness to work with Labor on productivity, but specifically through cuts to red tape and regulation, Liberal senator Jane Hume said. Parliament will resume on Tuesday.
Sydney Morning Herald
2 days ago
- Business
- Sydney Morning Herald
If you want tax cuts, find ways to raise more revenue: Chalmers
Treasurer Jim Chalmers has opened the government's economic roundtable to a tax grand bargain that would offset cuts with extra revenue while signalling to the states that any plan to increase the rate or breadth of the GST is unlikely to win favour. As details of a post-election Treasury Department briefing to Chalmers suggested it believes the government needs higher taxes and less spending to repair the budget, the treasurer said next month's three-day roundtable would also focus on ways to make the tax system simpler for both workers and businesses. But the Coalition accused Chalmers and Prime Minister Anthony Albanese of lying to the voting public, saying the Treasury briefing revealed the depths of the problem facing the budget. All areas of tax are expected to be part of the discussion during August's economic roundtable at which up to 30 people from government, unions, business and community organisations will work through proposals to increase the rate at which the economy can grow and lift living standards. Treasury's incoming government brief, parts of which were released to the ABC under freedom of information laws, showed the department argued that 'improvements to the budget will need to come from economic growth, additional revenue and spending reductions'. Loading It also noted that 'tax should be raised as part of broader tax reform'. Chalmers, who heads to South Africa this week for a G20 meeting of treasurers and finance ministers, said it was clear more had to be done to make the budget – forecast to show a $42.1 billion deficit this financial year – sustainable. He said he was looking for a broad array of proposals that either left the budget no worse off or improved the bottom line.
The Age
2 days ago
- Business
- The Age
If you want tax cuts, find ways to raise more revenue: Chalmers
Treasurer Jim Chalmers has opened the government's economic roundtable to a tax grand bargain that would offset cuts with extra revenue while signalling to the states that any plan to increase the rate or breadth of the GST is unlikely to win favour. As details of a post-election Treasury Department briefing to Chalmers suggested it believes the government needs higher taxes and less spending to repair the budget, the treasurer said next month's three-day roundtable would also focus on ways to make the tax system simpler for both workers and businesses. But the Coalition accused Chalmers and Prime Minister Anthony Albanese of lying to the voting public, saying the Treasury briefing revealed the depths of the problem facing the budget. All areas of tax are expected to be part of the discussion during August's economic roundtable at which up to 30 people from government, unions, business and community organisations will work through proposals to increase the rate at which the economy can grow and lift living standards. Treasury's incoming government brief, parts of which were released to the ABC under freedom of information laws, showed the department argued that 'improvements to the budget will need to come from economic growth, additional revenue and spending reductions'. Loading It also noted that 'tax should be raised as part of broader tax reform'. Chalmers, who heads to South Africa this week for a G20 meeting of treasurers and finance ministers, said it was clear more had to be done to make the budget – forecast to show a $42.1 billion deficit this financial year – sustainable. He said he was looking for a broad array of proposals that either left the budget no worse off or improved the bottom line.
Perth Now
2 days ago
- Business
- Perth Now
Home truths on housing target in leaked Treasury advice
The accidental release of government department advice which warned Labor was not going to meet its housing target and urged them to raise taxes, has not rattled the treasurer. Independent advice from the Treasury department, which was unintentionally sent to the ABC, reportedly contained subheadings which said the federal government's promise to build 1.2 million homes by 2029 "will not be met" and called for "additional revenue and spending reductions" to achieve a sustainable budget. Though he acknowledged Treasury's advice had been sent "in error", Treasurer Jim Chalmers said such incidents could happen from time to time. "I'm pretty relaxed about it to be honest," he told reporters in Canberra on Monday. "Treasury advises governments of both political persuasions - that advice can't be always adequately captured in the subheadings." A 2025 report from the National Housing Supply and Affordability Council - another independent government advice body - in May warned Labor would fall short of its goal by about 300,000 dwellings. It followed a report in March commissioned by the Property Council of Australia showing the government needed to build another 462,000 homes to meet its 2029 target. Asked if the government regretted putting out a housing target, Dr Chalmers said his government needed to be ambitious. "We'd rather have a big, ambitious, difficult target and work around the clock to meet it ... than to continue the approach of our predecessors, which was to build too few homes," he said. The government has also attempted to address its bottom line by reining in spending on the National Disability Insurance Scheme and proposing an increased tax on super balances above $3 million. Dr Chalmers has pledged to strengthen Australia's economy ahead of a trip to South Africa, where he will meet with his counterparts from other G20 countries as they deal with "extreme global economic uncertainty". Economic ties with countries like Indonesia, Japan, the UK and Germany could be strengthened as leaders discuss capital flows, supply chains, critical minerals and issues within their own communities. But domestically, one of the key focuses of Labor's second-term economic agenda will be to boost productivity. The agenda of an economic reform roundtable, to be held in August, has been finalised with Reserve Bank governor Michele Bullock set to kick off day one, Productivity Commission chair Danielle Wood to lead day two and Treasury secretary Jenny Wilkinson to head day three. Opposition Leader Sussan Ley claimed the government was "ignoring some of the very levers that matter most" in the productivity puzzle. While Dr Chalmers acknowledged he could not invite every industry, he said there would be many opportunities for people to contribute.
Sky News AU
2 days ago
- Business
- Sky News AU
Treasury tells Labor to hike taxes, slash spending to avoid budget blowout in leaked advice as millions struggle with price pressures
Labor must impose higher taxes on Australians grappling with a cost-of-living crisis and slash spending in order to avoid budget blowouts, according to a Treasury briefing released under Freedom of Information laws. The independent Treasury informed Labor after its re-election it needs to find "additional revenue and spending reductions" to ensure a 'sustainable budget' as the Albanese government faces a decade of deficits and more than $1 trillion in debt. It also warned Labor's goal to build 1.2 million homes by the end of this decade "will not be met" in a blow to Australians suffering under the dire housing crisis where prospective buyers are locked out of the market. These revelations, which originate from a Freedom of Information request put to Treasury by the ABC, mount pressure on Treasurer Jim Chalmers as he drives Labor's economic agenda in the Albanese government's second term. He has invited leaders across business, economics, unions and politics to an economic forum in August where Australia's sluggish productivity and the need for tax reform will come under the microscope. Efforts to change how super balances above $3m are taxed, which includes paper gains on assets, have already met intense backlash, while Mr Chalmers has largely opposed calls to tackle GST despite economists arguing it would reduce reliance on income tax. 'I suspect the states will have a view about the GST. It's not a view I've been attracted to historically, but I'm going to try not to get in the process of shooting ideas between now and the round table,' Mr Chalmers told reporters in June. The ABC revealed Treasury told Labor that "improvements to the budget will need to come from economic growth, additional revenue and spending reductions" and that "tax should be raised as part of broader tax reform". Uncertainty surrounding the United States and its trade war were also analysed by Treasury with the department presenting an array of scenarios including if there was a loss of confidence in the US dollar. "The global economic outlook has rapidly deteriorated, with implications for Australia," Treasury said. The Albanese government was also warned about its lofty 1.2 million homes target. Treasury said it 'would not be met' and called on Labor to build a 'coherent and well-prioritised' housing agenda. Mr Chalmers told reporters he was "pretty relaxed" about the new revelations, which were released by error, and insisted Labor was upfront about the information in the new report. "We have already made it really clear that we will do more to make our economy more productive and more resilient," he told reporters on Monday. "We have made it clear that we need to build on the progress we have made in repairing the budget so that we can make the budget even more sustainable." Mr Chalmers dismissed a question about Treasury's warning that Labor was falling short of it housing target as "a partial release" before later being grilled by a reporter. "For the record, that subheading, in full, on new homes says the 1.2 million new homes target 'will not be met'. It's about as unambiguous as any of the headings yet," the reporter asked the Treasurer. "Are you saying the department is wrong on that?" Mr Chalmers shot back: "I have read the incoming Government brief. I don't need reminding of what it says. I read it on the Sunday after the election." The Treasurer also said Labor has made efforts to boost the rate of housing growth and acknowledged the government was lagging behind its target. "We will need more effort to reach that substantial ambitious housing target and we're investing tens of billions of dollars," Mr Chalmers said. "We're working well with the states and territories and local governments, we're engaging with the industry, we're trying to get the capital flowing." Labor's housing target were a point of concern for REA Group senior economist Anne Flaherty who warned the target already falls behind what is needed for Australia's housing market. 'We are lagging,' Ms Flaherty said on Business Now. 'There are some positive signs that things are picking up a bit but if we continue on the trajectory that we're already on, we're looking at around a 20 per cent shortfall in the government's target of 1.2 million houses or homes. 'I should add to that … (Labor's) 1.2 million new homes is really what we need to keep the ratio of supply of homes to the population steady from where we are. 'With population growth continuing to outpace forecasts, that's likely to mean that this 1.2 million new homes - which we are unlikely to achieve - would already be below what we would actually need.' Recent figures from the Australian Bureau of Statistics showed the nation is falling well short of its 1.2 million new home goal. If the government were to achieve its target, it would need to ensure 240,000 are built each year. However, ABS figures show that since the Housing Accord began in July 2024, only about 90,000 new dwellings have been completed. There were 90,136 houses built from July to December 2024 under the Albanese government, almost the same amount delivered by the Morrison government over the same period in 2021.
