Liberal leader Angus Taylor has ‘no credibility’ on economy: Chalmers

Treasurer Jim Chalmers has launched a scathing attack on newly-installed Opposition Leader Angus Taylor, after the Liberal MP attacked Labor’s management of the economy.

Mr Taylor has pointed to economic policy as a key priority for a reformed Liberal agenda after his election to the top job last week.

He branded Labor’s management of the economy as a “disaster” and claimed the Australian standard of living was “going backwards” as a result.

On Sunday, Dr Chalmers described Mr Taylor as the “poster child for the Coalition’s economic insanity”, pointing to the difference in figures between the government’s Mid-Year Economic and Fiscal Outlook (MYEFO) and the Coalition’s budget costings during the election campaign.

According to figures released by the government, Labor’s MYEFO costings came to a $36.8bn, while the Coalition project a $47.8bn deficit, in 2025-26.

This $11bn deficit difference between the two parties shrinks to $3bn in 2026-27, but leaves the budget worse off under the Coalition plan, according to the costings.

“These figures show Angus Taylor has no credibility on the economy and that’s exactly why the Liberal Party is a complete bin fire,” Mr Chalmers said in a statement.

“The Liberals went to the election with a plan for higher taxes, bigger deficits and more debt, and you see that in these stats.

“Angus Taylor and Jane Hume blew up their election campaign, they blew up their economic credibility, and these numbers show they would have blown the budget too.”

Mr Taylor was the treasury spokesman on Peter Dutton’s frontbench, including during the last federal election.

He also made the controversial decision to oppose Labor’s election promise to cut the income tax rate.

Mr Taylor has since walked back that stance, labelled it a “mistake” and committed to restoring the Liberal Party as the party of lower taxes.

He has claimed a Liberal economic policy will focus on reducing inflation and interest rates, “restoring Australian standard of living”, and reining in government spending.

To curb public spending, the Liberal leader has not ruled out cutting public service jobs – one of Mr Dutton’s most controversial election proposals.

When asked, Mr Taylor said on Sunday: “the government has to be fit for purpose, it has to be effective. It has to be able to deliver the services that Australians want and deserve, and that will be our focus.”