Environment Minister Murray Watt has acknowledged that Prime Minister Anthony Albanese’s team has been leaking and undermining Treasurer Jim Chalmers, and called for it to stop. His comments come amid a series of reports detailing tensions within Labor over the government’s economic management as interest rates are repeatedly raised to counter rising inflation.
Asked directly by reporters in Canberra whether he wanted to see an end to the undermining of his colleague, Watt replied, "Yes, I would." He added that he took seriously the responsibility "to work together to support government policies and also to get out there and support each other in what are at times very difficult times."
The relationship between Prime Minister Anthony Albanese and Chalmers has come into the spotlight in recent weeks. A series of stories have exposed tensions within the caucus over Labor’s economic management amid repeated rate hikes to counter rising inflation. Watt, one of Albanese’s senior supporters, said he believed Chalmers was doing “an excellent job as a treasurer in what are very difficult economic times.”
Labor has promised to find savings in the December budget update, and Albanese delayed by a day his trip to the COP climate summit in Turkey to make space for multiple budget meetings on Monday. The government’s fiscal management has come to the fore amid criticism from the opposition and most economists, who argue public spending has made it more difficult for the Reserve Bank to combat war-induced inflation. Labor has pointed to higher fuel prices sparked by America’s war with Iran, which the RBA acknowledges has made the inflation problem much worse.
Chalmers issued somewhat of a mea culpa, acknowledging his budget measures were causing pain and saying he “should make more time for my colleagues.” A report in this masthead said cabinet colleagues had blocked his efforts to rein in spending, exacerbating internal debate. Albanese claimed he would be able to tell voters at the next election that Australia had not had a single quarter of negative growth. The article says Australia has not suffered a decline in nominal growth due to high migration, while growth per person has declined over several quarters since Labor came to power in 2022.
Opposition Leader Angus Taylor accused the prime minister of being “out of touch, out of his depth and losing his cool.” Taylor outlined Coalition plans to cut red tape by 25 per cent if he wins the next election and index tax brackets to inflation, the latter costing $220 billion over eight years. “The waste that this government is committing to is dragging resources out of the private sector,” he said.
Analysis
Why This Matters
- The public confirmation of leaks by a senior minister underscores a deep fracture within the Labor government as it heads into a critical budget update.
- The ongoing economic debate around spending and inflation is directly affecting voter trust, with recent polls showing a significant decline in support for the prime minister.
- The dynamic between Albanese and Chalmers has implications for Labor's leadership and the government's ability to project economic competence.
Background
Pressure has been building on the Albanese government over the cost of living and persistent inflation. With the Reserve Bank hiking interest rates to combat war-induced inflation, the government's spending levels have become a central political battleground. Chalmers, who is not factionally aligned with the prime minister, has been at the centre of the government's policy response, but internal divisions over spending have strained the leadership.
Key Perspectives
Murray Watt (Environment Minister): Called for an end to leaks and publicly endorsed Chalmers' performance, urging the party to present a united front.
Jim Chalmers (Treasurer): Has acknowledged the political pain and expressed regret for not spending enough time with colleagues, while some of his allies blame Albanese's camp for failing to defend him.
Angus Taylor (Opposition Leader): Attacked the government's spending and leadership, presenting the Coalition as a disciplined alternative focused on economic management and tax relief.
What to Watch
- Whether Watt's plea is heeded or the internal war continues to play out in the press.
- The December budget update: can Chalmers deliver the net savings demanded by the prime minister without further alienating his colleagues?
- The next Resolve Political Monitor poll, which will measure whether the government's internal strife has further eroded voter trust.
Checked
12 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedAlbanese ally Watt urged an end to the undermining of Treasurer Chalmers.The Age - Latest News: “Stop leaking against Chalmers and undermining him, Albanese ally says.”
- SupportedWatt called for leaks to stop as ministers met on budget cuts.The Age - Latest News: “Watt, in Canberra as ministers meet to find budget cuts, was asked by reporters if he would like to “see an end to the undermining and leaking” targeting Chalmers.”
- SupportedWatt acknowledged that Albanese’s team had been leaking and undermining Chalmers.The Age - Latest News: “Environment Minister Murray Watt has admitted Prime Minister Anthony Albanese’s ordinarily united team has been leaking and undermining Treasurer Jim Chalmers, and appealed for it to stop.”
- SupportedAsked whether he wanted an end to the undermining, Watt replied, “Yes, I would.”The Age - Latest News: ““Yes, I would,” Watt said.”
- SupportedWatt said he took seriously the responsibility to support government policies and colleagues.The Age - Latest News: “As a member of a government I take seriously the responsibility to work together to support government policies and also to get out there and support each other in what are at times very difficult times.”
- SupportedWatt said Chalmers was doing “an excellent job as a treasurer in what are very difficult economic times.”The Age - Latest News: ““I think that Jim Chalmers is doing an excellent job as a treasurer in what are very difficult economic times.””
- SupportedAlbanese delayed his trip to the COP climate summit in Turkey by a day to make room for multiple budget meetings on Monday.The Age - Latest News: “Albanese delayed by a day his trip to the COP climate summit in Turkey to create space to host multiple budget meetings on Monday.”
- SupportedChalmers acknowledged his budget measures were causing pain and said he “should make more time for my colleagues.”The Age - Latest News: “He acknowledged his budget measures were causing pain, making clear he liked and respected colleagues, and adding he “should make more time for my colleagues””
- SupportedA report in the masthead said cabinet colleagues had blocked Chalmers’ efforts to rein in spending, exacerbating internal debate.The Age - Latest News: “He also appeared to link Labor’s falling poll numbers to Albanese, igniting internal debate that was exacerbated by a report in this masthead that cabinet colleagues had blocked his efforts to rein in spending.”
- Partly supportedThe story attributes to Taylor both a plan to cut red tape by 25 per cent if he wins and a plan to index tax brackets to inflation.The Age - Latest News: “The Coalition announced a taskforce to cut red tape by 25 per cent should Opposition Leader Angus Taylor win the next election. Taylor announced the party’s plan to index tax brackets to inflation”
- SupportedThe tax-bracket plan would cost $220 billion over eight years.The Age - Latest News: “Taylor announced the party’s plan to index tax brackets to inflation would cost $220 billion over eight years”
- Partly supportedTaylor said, “The waste that this government is committing to is dragging resources out of the private sector.”The Age - Latest News: ““The waste that this government is committing to … is dragging resources out of the private sector [and] leading to an economy that is not delivering for hardworking Australians”