Arabic version: تشالمرز يواجه ضغوطاً اقتصادية وانتقادات داخل حزب العمال

According to The Guardian, Treasurer Jim Chalmers has faced growing pressure over stubborn inflation, rising interest rates and criticism from within Labor as the government confronts difficult economic conditions. Chalmers travelled to Bangkok on Thursday for meetings with finance ministers and central bank governors during a 13-hour visit, following an International Monetary Fund warning that the global economy could soon test the limits of resilience.

Labor MPs cited concerns after the Reserve Bank lifted rates to a 15-year high at the end of September. Government spending increased by 4.3% in real terms in the last financial year and is at a four-decade high outside the pandemic, the report said. Reserve Bank governor Michele Bullock said inflation had been driven by domestic capacity pressures, with price rises from the Middle East war adding to homegrown challenges.

The government is continuing to pursue a minimum tax on trusts and changes to the private health insurance rebate for older Australians. However, its plans on capital gains tax and negative gearing drew resistance before a deal was reached with the Greens. Drafting issues involving the so-called “widow’s tax” and changes extending beyond housing complicated Labor’s effort to present the reforms as an issue of intergenerational fairness.

Chalmers also denied being rolled by Anthony Albanese over an Australian Taxation Office credit card payment ban. Albanese told parliament on Thursday that Chalmers was doing a great job and that he was very proud of him. Chalmers said he took criticism seriously, telling ABC radio that senior government roles in difficult times would always attract a range of views. December’s mid-year budget update is expected to include spending cuts to offset higher debt repayments, while another interest rate increase remains possible in early November.