Compare that with the calm expressed by Jim Chalmers, the Australian Treasurer. This followed on the heels of the unintentional release of Treasury guidance on his plans to implement post-election plans. The leaked document revealed frightening doubts about the government’s radical plan to construct 1.2 million homes in just five years. It featured a big picture call for major tax reform. Chalmers was hopeful, stating that on the whole, he was feeling “pretty chill” about it. He pointed out that the leaked findings provide an opportunity for a national discussion on housing and fiscal policy in Australia.
The Treasury paper warned that, absent significant reforms, the federal government’s housing goals were sure to be missed. It did, however, bring to light the necessity for both tax increases and reductions in spending in order to make the budget sustainable. Chalmers accepted the criticism. He was encouraged to see that Housing Minister Clare O’Neil is already looking to improve their method for tracking progress towards their housing goal.
Response to Treasury’s Insights
Chalmers pointed out that the leaked advice is in line with the priorities he has previously signaled. Those conversations weren’t about housing—let alone racial equity—or budgetary fiscal impact. He reminded all of us how critical it is to have honest conversations about these challenges.
“The priorities which are being reported today are … the sorts of things that I have mentioned before,” – Jim Chalmers
The Treasurer didn’t just sit on his hands — he preemptively rebutted the expected criticism from multiple fronts. Significantly, Shadow Treasurer Ted O’Brien accused the government of concealing the reality of its fiscal policies by relying on such advice. O’Brien continued, “Treasury is confirming what the Coalition has been saying for years—austerity is code for they have a spending problem, they have no fiscal discipline and they’re preparing to slug Australians with higher taxes.”
To their credit, Chalmers defended his government’s ambitions, arguing that until you acknowledge a challenge, you can’t begin to address it. He continued, “I don’t understand why it’s radical or bad for our federal government to at least recognize the obvious crisis in housing. Why would you want to dampen our ambition to do something about it?”
Challenges in Housing Policy
The ‘secret’ advice from Treasury leaked last week caused widespread panic about the likely inability to meet Labor’s national housing supply target. The federal scorecard revealed that the government would surely fail to achieve its targets if current trends persist. Chalmers did not lose heart and glimpsed solutions coming into view.
“Under current trajectories, we would fall short, but that doesn’t mean that between now and over the course of the next four years we can’t work … to build more homes,” – Jim Chalmers
Climate Change and Housing Minister Clare O’Neil agreed that this raises a real concern about the distribution of newly built homes given current tax arrangements. She made clear that she wants to see reform. In their absence, large new developments will inevitably benefit millionaire property moguls at the expense of aspiring FTHBs.
“Labor’s hot air around housing is proving to be more bluster than content … Even if they could build 1.2 million new homes, under the present tax arrangements they are likely to go to wealthy property investors who can leverage their tax advantages to push first home buyers out of the market,” – Clare O’Neil
Chalmers stressed the importance of knowing the full picture on all sides—from the best to worst-case scenario—in housing policy development and implementation planning. He thanked Treasury for their work on this front, acknowledging it allows him to more easily steer his ship through many different potential scenarios.
“I’m grateful for the work that they do because it helps me think through various scenarios, even if we think that the chances of that happening are remote,” – Jim Chalmers
The Path Forward
To his credit, Chalmers recognizes the challenge of these economic times. He is still plowing ahead for ambitious new housing production targets and property tax reform. He stressed the need for transparency and open dialogue in being responsive and responsible with these emerging technologies.
Chris Richardson lauded the insights from Treasury. He hopes that these findings will encourage open and candid conversations among stakeholders in government and beyond. As he stated, “not any of this is news,” stressing the repetitive cycle of these fiscal issues year after year.
“Far better that these issues are raised and discussed. If we’re to get a better nation, we need a better conversation,” – Chris Richardson
Chalmers continues to advocate for bold policy initiatives aimed at improving housing access for all Australians while navigating the complex landscape of fiscal responsibility.
