‘Possibility’: Treasurer Jim Chalmers concedes risk of Labor being booted at next election, says no outcome ‘taken for granted’

The Federal Treasurer has conceded there is a “possibility” Labor will be booted at the next election while tempering expectations of “big spending” in the mid-year budget update.

Jim Chalmers has conceded there is a “possibility” Labor will lose government at the next election, amid fears the well of cost-of-living relief may have dried up.

Speaking on ABC Radio on Thursday, Dr Chalmers was asked if there was a “very real risk” Labor would not be re-elected.

“Of course, that’s a possibility,” he said.

“You know, we take, we take no outcome of any election for granted.”

National accounts data released on Wednesday shows Australia has been in a per-capita recession for seven quarters in a row.

Treasurer Jim Chalmers says he backs Anthony Albanese even if Labor finds itself in a minority government. Picture: NewsWire / Nikki Short

The Reserve Bank makes its final cash rate decision for the year next week, where it is widely tipped the rate will hold, while the timing of key economic numbers in the coming months means an interest-rate cut before the May election deadline is unlikely.

Dr Chalmers also backed Anthony Albanese as party leader in the event Labor is re-elected, but without enough seats to form a majority government.

“One of the things that we’ve shown a capacity to do is regenerate under the same leader,” the Treasurer said.

“My expectation and my hope is, if we do win the election next year, that Anthony Albanese serves the full term and runs again, that’s what I would expect to happen.”

“One of the things that we’ll be taking to the Australian people is a sense of stability, a sense that we’ve got an economic plan.

“We’re rolling that out in difficult times, we’re helping people where we can, and that’s a tribute to Anthony’s leadership.”

Dr Chalmers flagged the mid-year budget update would not include new “big spending” – tempering expectations the government would double-down on it’s cost-of-living relief splurge from the May budget.

An interest-rate cut by the Albanese Government before the next federal election is unlikely. Picture: NewsWire / Martin Ollman

The mid-year economic and fiscal outlook will be released in two weeks’ time.

“There will be some measures and some initiatives accounted for in the mid-year budget update but it will be largely an update of the budget from May,” Dr Chalmers said.

The Treasurer added he did not see the fiscal update as an “opportunity to announce a whole bunch of new stuff”.

The government has decisions to make in respect to budgets and funding announcements.

As the election deadline of May 17 looms, this government may not hand down a budget on March 25 as scheduled.

In that scenario, where an election date has been called, parliament is dissolved and Labor cannot put out a full March budget, the mid-year economic and fiscal outlook will need to set aside funding for per-election promises.

However, elsewhere on Thursday Dr Chalmers said the government was working on a March budget.

The Treasurer has taken every chance of late to warn a government led by Peter Dutton would make huge cuts to social securities and risk a recession.

Originally published as ‘Possibility’: Treasurer Jim Chalmers concedes risk of Labor being booted at next election, says no outcome ‘taken for granted’