Albanese government wracked by internal sabotage as Treasury advice is reportedly sidelined and tax reforms trigger leaks
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Environment Minister Murray Watt called for an end to destabilising leaks against Treasurer Jim Chalmers, while reports say Treasury’s independent tax advice is being pushed aside and Labor’s vote is slipping amid pressure over spending cuts and tax reform.
Environment Minister Murray Watt urged an end to “undermining and leaking” against Treasurer Jim Chalmers, saying the government must stand together during “very difficult times.” Watt praised Chalmers’ handling of the economy and said the internal sniping was actively weakening the treasurer’s work at a moment when the public is already feeling the strain of economic pressure.
According to a source cited by The Australian, departmental experts have been excluded from providing independent commentary on the confidential “pink papers” that traditionally accompany Treasury’s assessments of tax policy. The practice, which had been in place for decades, was reportedly abandoned just before the last budget, leaving only the treasurer and Assistant Treasurer Daniel Mulino to receive unfiltered Treasury input. The Department of Finance and the Department of the Prime Minister and Cabinet continue to supply written notes, but their staff lack the same tax expertise. A former Treasury secretary described the change as “odd” if the pink papers are not jointly prepared by the three central agencies.
The internal strain comes as new polling shows Labor’s primary vote falling to 28 percent, down from 34.6 percent at the previous election, while the Coalition slipped to 22 percent and One Nation held at 25 percent in one survey, and to 26 percent for Labor with the Coalition at 25 percent and One Nation at 28 percent in another. The results arrived as the cabinet’s expenditure review committee met to identify urgent budget savings ahead of the mid-year budget update, underscoring the pressure on a government now being asked to trim spending while protecting working people and public services.
Potential cuts could affect popular clean-energy subsidies, including a $7 billion home-battery scheme that has expanded beyond its original $2 billion estimate after 600,000 installations, and subsidies for electric vehicles. Public-service departments are also under review after a directive to find up to 5 percent in savings from lower-priority spending. Watt accused the opposition of blocking $10 billion in savings measures, citing stalled reforms to the private-health-insurance rebate for over-65s, even as the government faces the political risks of cutting support for climate and household transition measures.
Assistant Treasurer Daniel Mulino told ABC News Breakfast that the government is undertaking “one-in-25-year” tax reform and emphasized the need for unified action within the party. Assistant Minister Andrew Charlton echoed support for Chalmers, noting the treasurer’s efforts to curb inflation and assist first-home buyers, and said the caucus broadly backs the treasurer despite the leaks.