Treasurer Jim Chalmers rules out pre-election cash splash, new tax cuts

Treasurer Jim Chalmers has downplayed the prospect of new cost-of-living relief and ruled out a pre-election “spend-a-thon” as the Federal Government tightens its belt to continue containing inflation.

Neither major party will go to the election promising tax cuts, as Opposition Leader Peter Dutton accused Labor of deliberately siding with “elites” and leaving people in the suburbs out in the cold.

The economic stoush comes as the Government struggles to get key parts of its agenda through what could be the final sitting fortnight of Parliament.

The Coalition decided on Monday to oppose capping the number of international students, sparking anger from Education Minister Jason Clare who said the decision would destroy Mr Dutton’s credibility.

“Every time he says the word immigration, remember this week is the week that proves that Peter Dutton might pretend to be a tough guy on immigration, but the truth is he’s a fraud,” Mr Clare said.

The student cap was one of the key levers the Government could use to slow migration in the face of a massive influx of people after the two years of border closures during the pandemic, but universities warned it would devastate the sector.

Mr Dutton has been campaigning strongly on claims high immigration numbers are driving up house prices and adding to the housing affordability crisis.

Separate bills to deal with the housing issue are still stuck in limbo even after a Greens concession to lower their demands in exchange for helping the Government pass them.

Dr Chalmers insisted the Government was focused on keeping inflation down and helping people still struggling with the cost of living.

But he said voters should not expect “some kind of free for all of public spending” in next month’s mid-year economic update or in the Federal Budget, which is pencilled in for late-March.

“There will be inevitably measures, new measures, that we tally up in mid-year budget updates but you shouldn’t anticipate it will be something that looks like a mini-budget or something like that,” he said.

Mr Dutton said people were “stressed to the max … because the government has taken decisions which have forced up inflation”, leading to higher grocery prices and other bills.

“I think what we’ve seen here in Australia – and perhaps there’s some parallel in the United States with this – the Prime Minister has made a deliberate decision, a deliberate political decision, to go with the elites, and he’s left behind people who are struggling in the suburbs,” he told Sky News.

“If you look at the Prime Minister’s own lens on the world. He looks at it through the Grayndler lens … He’s obsessed with the Greens, and he’s forgotten about people who are working out in the suburbs.

“The Labor Party now has been dragged so far to the left, not just on the woke stuff, but the economy and the national security decisions.”

Dr Chalmers said the Government was one “that governs for the whole country”.

With Prime Minister Anthony Albanese away at the G20 and Energy Minister Chris Bowen – a strong parliamentary performer – in Azerbaijan for the UN climate summit, the Opposition peppered acting Prime Minister Richard Marles with questions on power prices.

The crossbench showed its MPs are getting a handle on parliamentary tactics as they try to highlight their own impact in Canberra, with Helen Haines asking fellow independent Monique Ryan a question about her bill to bring greater transparency to lobbyists.

“Bills to stop pork-barrelling, bills for truth in political advertising, bills for meaningful and equitable reform of electoral donations … bills that stop jobs for mates, bills to protect whistleblowers. Not one of the bills has been debated by this Government,” Dr Ryan said, listing off crossbench initiatives.

This followed an hour-long debate over whether the sweeping overhaul of electoral funding should be sent for detailed scrutiny, instead of being pushed through this fortnight as the major parties wish.

The accompanying boost to public funding would lead to taxpayers handing over $61.6 million more to political parties after the 2028 election, an analysis by Climate200 founder Simon Holmes a Court estimates.

He also estimates that between the extra administrative funding and the higher per-vote funding, the two major parties would receive more than $140 million between them after the 2028 election, more than double the $57.3 million they received in 2022.

The polls as they stand suggest the trend continues of increasing numbers of people directing their vote away from the major parties.

In the event of a hung parliament, Labor and the Coalition will find themselves needing to listen to crossbench ideas.