Treasurer Chalmers' Fiscal Discipline Push Faces Opposition Within Cabinet
Select a version of the text written from a presumed ideological perspective. This is not the original text, but a hypothetical version — how someone with that viewpoint might have phrased it. Tapping the current version again will return to the original or select cleaned version.
Treasurer Jim Chalmers says his proposals for lower spending and new revenue measures were overruled by a senior group of ministers, raising questions about his influence in the Albanese government.
Treasurer Jim Chalmers said his attempts to tighten fiscal policy ahead of the May budget were blocked by a senior group of ministers that includes Finance Minister Katy Gallagher, Foreign Minister Penny Wong and Health Minister Mark Butler. Sources familiar with cabinet deliberations noted that Chalmers often advocated for the lowest-cost options when proposals were examined by the expenditure review subcommittee, but the group rejected many of his recommendations.
"[Chalmers] has told people he wanted to do more both on the revenue side and spending side," a source said, adding that the episode highlights the dynamics of Prime Minister Anthony Albanese’s cabinet and raises questions about the treasurer’s authority.
Chalmers told the Inside Politics podcast that he has become a focal point for criticism as inflation remains above target, and he acknowledged criticism that he is isolated from colleagues. He said the Treasury is working with other ministers to identify savings for the December budget update, but no firm commitment has been made to offset new spending.
Earlier proposals that Chalmers supported, such as a tax on gas exports to fund business-investment incentives and a road-user charge aimed at electric-vehicle owners, were not adopted by the cabinet. Albanese reportedly considered the road-user charge too controversial.
Federal spending rose 4.3% in the last financial year, outpacing projected GDP growth. Government officials said achieving net savings will be difficult, citing a $3 billion private-health-insurance change that was blocked by the opposition and an estimated $11 billion shortfall that must be covered.
Opposition figures criticised Chalmers for not taking responsibility for the government’s polling decline and for alleged inaccuracies in the opposition’s inflation assessment. The Treasury continues to seek ways to reduce the fiscal gap while managing the broader economic strategy.