Jim from Qld: Chalmers’ plan to tackle ‘extreme cost of living’ pain

The Queenslander who hopes to be the next federal treasurer, Jim Chalmers, has promised big cost-of-living relief if Labor is elected.

Making it easier to buy a first home, backing “genuine” cost-of-living relief and wiping unpopular taxes taken to the last election will be a major part of a Labor government, shadow treasurer Jim Chalmers has revealed just prior to next week’s Budget.

Warning Australians are under extreme cost-of-living pressures, Mr Chalmers said the typical Queensland family was already paying $4760 a year more for essentials such as petrol, child care and rent, than they were in December 2020.

Labor MP Jim Chalmers could potentially become the first federal treasurer from Queensland since Wayne Swan. Picture: Zak Simmonds

If Labor wins in May, Mr Chalmers will be the first federal treasurer from Queensland since Wayne Swan and only the second since Bill Hayden in 1975, and has promised to give the state a “much more prominent voice” at the table.

Learning lessons from 2019, he promised a Labor government would leverage the nation’s traditional industries like mining, rather than abandon them, and pledged unpopular tax policies would not return.

He said there was a housing crisis in Australia, and the Opposition would unveil a policy to tackle it before polling day.

“It seems like it’s never been harder for Queenslanders to get a toehold in the housing market,” Mr Chalmers said.

“It’s a crucial, front-of-mind issue for Queenslanders.”

He said Queenslanders were now paying $1100 a year more for petrol, $800 a year more for child care for each child in care five days a week and $2860 a year more in rent compared than in December 2020.

Ahead of the Budget the Coalition has flagged it is considering a potential freeze or reduction to the 44c/litre petrol excise, while there is speculation there could be a one-off payment for pensions and other tax relief for low-and-middle income earners.

Labor is widely expected to back-in cost of living relief raised in the Budget.

Shadow treasurer Jim Chalmers says Labor will announce a housing affordability policy between now and the election.

Mr Chalmers said he expected the government would “spray billions of dollars around” in a pre-election Budget.

“Let’s see what they propose,” he said.

“We will be supportive of genuine cost of living relief for Queensland families if it’s delivered in a responsible way for the right reasons.

“Queenslanders are under extreme cost of living pressures. It’s petrol, but it’s more than petrol. Pressure on Queensland families didn’t begin when Russia invaded Ukraine. It began when this government attacked people’s wages.”

He said Labor’s controversial tax agenda at the last election, which included scrapping negative gearing and franking credits, would not be repeated.

“Other tax proposals taken to the previous election won’t be on the agenda,” Mr Chalmers said.

“Our priority (on tax) is to work with other countries on multinational tax reform.”