Chalmers Pushes for Broader Tax Agenda
Treasurer Jim Chalmers has urged Labor to extend beyond its election mandate and lead a national discussion on tax reform. He argued that Australia’s long-term prosperity depends on ambitious economic policies focused on productivity and a stronger tax system.
National Press Club Speech Outlines Reform Goals
In a Canberra speech to the National Press Club, Chalmers outlined his plans for a three-day reform roundtable starting 19 August. He described it as “a genuine attempt to find common ground if it exists, in the service of our shared national economic interest.”
Chalmers Targets Tax Burden on Workers
The treasurer recognised the need to reduce pressure on working Australians and reshape the revenue base. He warned that Australia must prepare for a future where fossil fuel profits no longer support the federal budget.
Chalmers said, “No sensible progress can be made on productivity, resilience or budget sustainability without proper consideration of more tax reform. I don’t just accept that, I welcome it.”
Criticism of the ‘Rule-In Rule-Out’ Debate
Chalmers attacked the role of media in framing economic policy debates. He criticised the “rule-in rule-out game” for creating a toxic environment that stifles necessary policy change.
“Limiting ourselves to ruling things in or out forever has a cancerous effect on policy debates,” he said. “It can rob an informed and modern country like ours the flexibility and maturity to respond to big challenges.”
Australia’s Revenue Pressures Are Rising
The treasurer pointed out that the government collects less tax as a share of GDP than it did under John Howard and Peter Costello. He suggested that there is historical precedent for a larger tax take to meet future demands.
He said the transition to net zero would reduce revenue from fossil fuel exports. “This evolution in our revenue base is one of the reasons tax reform is so crucial to budget sustainability – on top of restraining spending, finding savings and working on longer-term spending pressures.”
Chalmers Calls for Collective Reform Effort
Chalmers emphasised that the path to economic reform requires unity across government, industry and the community. He said the August roundtable aims to unlock cooperation on long-term challenges. With fossil fuel revenue set to decline, Chalmers argued the tax system must evolve. “The global net zero transition will also reshape our revenue from resources,” he said. He reaffirmed Labor’s commitment to reduce tax pressure on workers and build a fairer system. The treasurer also warned that rejecting reforms while calling for change damages progress. He urged a national conversation driven by responsibility, evidence and shared economic interests.
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Reform Aimed at Long-Term Challenges
Chalmers stressed that tax reform is about more than balancing the budget. “It’s also about lifting productivity and investment. Lowering the personal tax burden and increasing the rewards from work. Creating a more sustainable, simpler system to fund vital services. And improving intergenerational equity.”
Reform is a National Responsibility
The treasurer acknowledged the difficulty of leading reform efforts but stressed shared responsibility. “Reform is not just a test of a treasurer or a cabinet but a test of our country.”
He criticised opponents of Labor’s modest superannuation concession changes for blocking more comprehensive tax reform. “Too often, the loudest calls for economic reform in the abstract come from the noisiest opponents of actual reform in the specific.”
Chalmers Sets the Stage for August Roundtable
The August economic roundtable will include representatives from business, unions, and the community sector. Chalmers sees the event as a chance to find consensus and build momentum for meaningful reform.
The treasurer’s comments come amid growing calls from economists and policy experts for Australia to broaden its tax base. He framed the upcoming discussion as a critical moment to future-proof the economy.
