Australia's Treasurer Chalmers Says Federal Budget Takes 'Hard Road of Reform'
Australian Treasurer Jim Chalmers said the federal budget being delivered Tuesday evening will be the government's most ambitious yet, featuring an unusually large amount of savings and structural reform. The signal comes as the economy slows.
Speaking to ABC ahead of the federal budget release, Australian Treasurer Jim Chalmers said the government had prepared a package with "more than the usual amount" of savings and reform. Chalmers stressed that the choice was about long-term fiscal discipline rather than the political cycle.
The package is expected to include structural changes in productivity, the tax system and the energy transition. The government plans to tighten certain welfare line items while allocating extra funding for infrastructure investment. The Albanese government also acknowledges that the global slowdown is weighing on Australia's GDP.
The opposition argued the budget does not adequately address inflation and interest-rate pressures. The ASX 200 index opened slightly higher before the release, while the Australian dollar traded in a narrow range against the US dollar. Investors are closely watching the Treasury's GDP growth and primary balance forecasts.
More from Australia-Pacific
New Zealand and Australian Businesses Report Higher Costs and Risks From Middle East Conflict
A new survey showed the Iran war is significantly raising costs for businesses in New Zealand and Australia. Forty-eight percent of New Zealand firms reported freight delays, compared with 32% in Australia.
New Zealand Manufacturers Sell Off Stock as Iran Conflict Hits Revenue
A large share of New Zealand manufacturers have begun discounting inventory aggressively as the Iran war damps demand and lifts shipping costs, according to the sector's industry body. Over half of surveyed members reported revenue declines. The government is weighing temporary support.
Australia 2026 Budget: Chalmers Hands Down Smaller Deficits in Fifth Budget
Australian Treasurer Jim Chalmers delivered the country's fifth federal budget under Labor with notably smaller deficit projections for coming years. Strong commodity revenues and a resilient labour market underpin the improved figures. Housing, defence and energy headline an election-year package.