Treasurer Jim Chalmers has attempted to downplay the significance of recent Treasury advice advocating for tax increases, which was inadvertently shared with journalists. This advice also indicated that the government’s ambitious target of constructing 1.2 million new homes by mid-2029 is unrealistic and requires reassessment.
Reports from the ABC revealed that they received a heavily censored version of an incoming government brief through a freedom of information request, although some section titles remained visible. Chalmers commented that the essence of the advice wasn’t fully reflected in the available headings and emphasised that the government is already addressing the points raised in the report.
He explained that the disclosure was due to an administrative error by a Treasury official, and expressed his nonchalance regarding the situation, noting that Treasury guidelines typically provide governments with a variety of advice, much of which goes unaddressed in detail. Chalmers reassured that the government is committed to enhancing productivity and resilience as they work towards their housing objectives.
The release of this advice coincides with growing demands for a comprehensive overhaul of Australia’s tax system, which heavily depends on personal income tax yet struggles to generate sufficient revenue to meet public expenditure needs. Economist Chris Richardson reflected on the prior election campaign, describing it as frustrating due to a lack of substantive proposals from either side regarding pressing issues. He observed that while the Treasury’s advice does not contain surprises, it lacks familiarity among the public.
Chalmers has consistently indicated that tax reform will be a critical topic at the forthcoming productivity roundtable scheduled for next month. However, he specified that alterations to the Goods and Services Tax (GST) are not on the agenda. He reiterated the government’s established stance on the GST and expressed a willingness to explore diverse ideas from states and other sources to simplify the tax structure.
In conclusion, as the government navigates these challenges, Chalmers emphasised the importance of fostering informed discussions about tax reform and housing strategies to pave the way for a more productive and resilient economy in Australia.