EDITORIAL: Pressure is mounting between Albo and Chalmers

It’s all getting a bit messy at the top of the Federal Labor Party.

More specifically, around what seems to be rising tensions between Prime Minister Anthony Albanese and Treasurer Jim Chalmers.

There is a sense that the chances of them both staying in their current jobs by the time of the next election is becoming less likely.

The speculation will only grow after Dr Chalmers was forced to announce yet another embarrassing Government back down on Friday — this time over the contentious plan under which the Australian Taxation Office would no longer accept payments by credit card after December 1.

The policy was part of a double whammy for small businesses, after a ban on credit and debit card surcharges kicked in last week, meaning businesses aren’t allowed to charge customers extra for paying by card.

But the Reserve Bank of Australia, which regulates the payments system, has warned businesses will still incur costs when accepting card payments.

Many businesses fear they cannot simply absorb the cost and have little choice but to raise prices in response.

That pain remains unresolved.

But after days of pressure from the Opposition, business groups and even within Labor’s own ministerial ranks, Dr Chalmers suddenly called a lunchtime media conference in his Queensland electorate, where he announced the ATO’s ban on credit card payments would be delayed until the middle of next year.

The backflip, on a tax office policy announced little more than a week ago, marks Labor’s fifth policy reversal in just a year from superannuation to Budget taxes on estate planning, tech start-ups and widows inheriting an investment property.

Amid the ongoing cost of living crunch, rising interest rates and fear of more increases to come, the property market slowdown and plunging house values, the Government has taken on a ragged appearance and its poll ratings have slumped in the face of the threat from One Nation.

Backbenchers get very nervous when the opinion polls go bad, especially those with marginal seats.

And when the troops get restless, either things are fixed quick smart or they look for someone to carry the can.

Which leads us to the future of Dr Chalmers.

There are suggestions that Mr Albanese blames Dr Chalmers’ economic stewardship — or lack of it — for the Government’s predicament, and that dumping his Treasurer may be his response.

Dr Chalmers’ media conference on Friday dealt firstly with the ATO credit card issue, and then with natural disaster funding in which he said the goal was to make sure that disaster funding could be accessed faster and delivered where it was needed.

It was telling that Dr Chalmers made sure to thank for their work “Team Queensland in the Federal Parliament”.

It appeared for all the world like circling the wagons for protection.

Dumping his Treasurer would be a big step for Mr Albanese.

Labor remains haunted by the chaos of the Rudd-Gillard-Rudd leadership revolving door, which left long-lasting scars.

But Mr Albanese hasn’t got to the top job without being a master of the political dark arts.

This is now a live issue.

Responsibility for the editorial comment is taken by Editor-in-Chief Christopher Dore