Treasurer Jim Chalmers has admitted he should make more time for his colleagues, in what columnist and former Labor adviser Sean Kelly describes as a strong mea culpa. The admission highlights internal tensions within the Albanese government five months after its housing tax changes, as it faces poor polling and questions about its future direction.
In a column for The Sydney Morning Herald, Kelly writes that the government risks falling into a malaise, with some MPs beginning to judge its performance based on poor polling. He notes the recent proliferation of backgrounding by Labor ministers and MPs, though much of it amounts to what he calls political whingeing rather than serious policy debate. Chalmers' admission, Kelly says, indicates senior figures are taking the internal tensions seriously.
The government's housing tax changes, announced five months ago, were described by Chalmers as the most significant tax reform in a generation. Kelly argues they marked the government's strongest declaration of purpose, stepping into the Labor tradition of Gough Whitlam and Paul Keating.
Kelly contrasts this term with Labor's first term, noting that the housing changes were announced two years before the likely election, leaving significantly more time to fill than the stage 3 tax cuts in the previous term. He questions whether the government will continue as a boldly reforming equity-focused government or revert to a more cautious approach.
Kelly writes that a sudden policy pivot would look like panic, but the government must not assume the ship will right itself. He suggests the government will likely not rush to answer defining questions in the next two months, but that over the next year they will be answered through action or inaction.
Analysis
Why This Matters
- The admission underscores the level of internal unease within the Labor government, potentially affecting its ability to deliver policy.
- The government's direction will shape key areas such as housing, taxation, and economic reform over the next two years.
- Poor polling and internal tensions could lead to a policy pivot that may either strengthen or destabilise the government.
Background
The government's housing tax changes, announced five months ago, were described by Chalmers as the most significant tax reform in a generation. Kelly notes they were announced two years before the likely next election, leaving more time to fill than the stage 3 tax cuts of the previous term. The government has faced continued poor polling, partly driven by inflation.
Key Perspectives
- Jim Chalmers: said he should make more time for his colleagues, signaling acknowledgment of internal disquiet.
- Sean Kelly (columnist): argues the government is at a crossroads, needing to decide between being a boldly reforming equity-focused government or a more cautious approach. He warns against both panic and complacency.
What to Watch
- The December budget update, which may include significant savings and signal the government's economic direction.
- The government's response to the next interest rate rise, predicted to increase pressure for a clear agenda.
- Whether senior Labor figures begin to articulate a consistent narrative about the government's character and priorities.
Checked
5 claims in this story checked against 1 source: 3 supported.
Show each claim
- SupportedChalmers said, “I should make more time for my colleagues.”Sydney Morning Herald - Latest News: “you will not get many stronger mea culpas from senior ministers than Chalmers’ recent admission to this masthead: “I should make more time for my colleagues.””
- SupportedKelly describes Chalmers’ admission as a strong mea culpa.Sydney Morning Herald - Latest News: “When it comes to mea culpas, they don’t come much stronger than Jim Chalmers’ recent admission.”
- Partly supportedKelly says Chalmers’ admission indicates senior figures are taking the internal tensions seriously.Sydney Morning Herald - Latest News: “So far, much of this backgrounding seems to be at the level of political whingeing. Still, senior figures are obviously taking it seriously. On the subject of olive branches, you will not get many stronger mea culpas from senior ministers than Chalmers’ recent admission”
- Partly supportedThe housing tax changes marked the government’s strongest declaration of purpose.Sydney Morning Herald - Latest News: “the budget marked this government’s strongest declaration of purpose – stepping into the Labor tradition to which both Whitlam and Keating were attached. With their housing tax changes, Albanese and Jim Chalmers chose to do something significant about our increasingly unequal society.”
- SupportedThe housing tax changes were announced two years before the likely election, leaving more time than the stage 3 tax cuts did.Sydney Morning Herald - Latest News: “The changes to the stage 3 tax cuts were announced just over a year before the election. ... The housing tax changes, though, were announced two years before the likely date of the next election. That leaves significantly more time to fill.”