Chalmers flags savings, not relief

Treasurer Jim Chalmers says a savings package will feature in the mid-year budget update due in mid-December, downplaying prospects of cost-of-living relief for households.

“One of the primary influencers on the mid-year update will be the need to find more savings.”

Albanese had signalled help was coming

Prime Minister Anthony Albanese indicated this week that cost-of-living relief measures could be on the way, but Chalmers said the government must run a tight ship because of budget pressure.

Pressure is global and intensifying

Chalmers said there is very substantial and intensifying pressure on budgets around the world, not just Australia's. The Reserve Bank of Australia raised interest rates to a fifteen-year high on Wednesday.

“There is very, very substantial and intensifying pressure, not just on our budget but on budgets around the world.”

Middle East conflict adding pressure

Chalmers said no serious observer would disagree the war in the Middle East was putting very substantial pressure on the Australian economy. Reserve Bank governor Michele Bullock warned inflation isn't all about the conflict.

Coalition attacks government spending

Shadow Treasurer Tim Wilson labelled Chalmers a disastrous treasurer and called for him to step down, arguing the government has actively stoked inflation and undermined the country's success.

“He's actively stoked inflation, and he's fundamentally undermined the success of this country.”

Debt servicing costs to surge billions

Chalmers warned the cost of servicing Australia's trillion-dollar debt burden will rise by billions of dollars as cheaper debt is paid off and the government turns to more expensive borrowing options due to rising global bond yields.

“The pressure will still come to Australia, unfortunately, and you'll see in the billions of dollars the magnitude of pressure, coming from those bond yields which are changing so quickly.”