Chalmers Unfazed by Treasury Leak Revealing Budget, Housing Concerns
Treasurer Jim Chalmers says he’s “pretty relaxed” after Treasury accidentally released internal advice casting doubt on Labor’s housing targets and suggesting tax reforms. The advice, shared with the ABC through a Freedom of Information request, was mistakenly disclosed but aligns with the government’s public messaging, according to Chalmers.
The documents reveal Treasury’s belief that the goal of building 1.2 million homes in five years is unlikely to be met, and that both spending cuts and tax increases are necessary to ensure long-term budget sustainability.
Chalmers conceded the housing target is off track but insisted it’s still achievable with increased effort. He said Housing Minister Clare O’Neil is working on strategies to close the gap. The treasurer also dismissed concerns about Treasury modelling worst-case economic scenarios, like a collapse of the US dollar, saying such planning is essential.
The opposition seized on the leak, with Shadow Treasurer Ted O’Brien accusing the government of hiding the truth about its economic challenges. The Greens also criticised the government, calling the housing commitment “empty rhetoric” that would benefit wealthy investors over first home buyers.
Economist Chris Richardson welcomed the rare insight into Treasury’s candid advice, calling for more open conversations about the nation’s fiscal and policy realities.
