Australia: Finance Minister Says No Area Exempt From Budget Cuts as Inflation Pressure Mounts
Australia's Finance Minister Katy Gallagher told ABC's Insiders programme on November 1 that nowhere will be off limits as the Labor government searches for budget savings, after inflation came in hotter than expected in the year to September and high public spending drew criticism.
Gallagher described reports of tension between Prime Minister Anthony Albanese and Treasurer Jim Chalmers as overblown, saying the two have a professional and respectful relationship and that cabinet discussions on budget measures had been robust. She said the pressures on the Commonwealth budget are real and increasing, with a lot of work going into the savings side.
Federal government spending as a share of GDP hit 26.9 percent in the 2025/26 financial year, the highest proportion in four decades outside the COVID-19 pandemic. The Reserve Bank's preferred inflation measure, the quarterly trimmed mean, rose 1 percent in September, beating the central bank's 0.8 percent forecast, while headline annual inflation came in at 4.3 percent. Markets widely expect the Reserve Bank to raise the cash rate on Tuesday.
Gallagher defended tax breaks for electric vehicles and generous home battery subsidies, saying they support the energy transition and help households cut energy bills, though the battery scheme's cost has blown out to A$7.2 billion over four years, more than three times its original forecast, and the government has capped eligible EV values and tightened the rebate. December's mid-year budget update is where the savings will be set out.
Source: GSM · USA (original Chinese edition)
Photo: 照片：澳大利亚议会大厦众议院会议厅，JJ Harrison 摄，Wikimedia Commons，CC BY-SA 3.0 授权 / Photo: Australian House of Representatives, by JJ Harrison, Wikimedia Commons, CC BY-SA 3.0
