Treasurer defends ‘failed’ budget promises

Treasurer Jim Chalmers has hit out at criticism arguing the government “failed” to deliver on key election promises in the budget.

Treasurer Jim Chalmers has defended the first Labor budget in about 10 years over criticism the government “failed” to deliver on two key election promises.

Mr Chalmers warned there would be “hard days to come” as he handed down his first budget on Tuesday, stressing the government had shown “restraint” and made “responsible” decisions.

But when he appeared on Sunrise on Wednesday the following morning, co-host David Koch took the Treasurer to task over election promises he believed the government had reneged on.

Earlier in the year, Labor made an election promise to slash the price of electricity bills by $275.

Treasurer Jim Chalmers spoke with morning TV programs the day after the 2022 Budget was handed down, at Parliament House in Canberra. Picture: NCA NewsWire / Gary Ramage

But now by the end of the year, Treasury estimates retail electricity prices will increase by 20 per cent nationally, while in 2023-24 that figure will blow out to 30 per cent.

Mr Chalmers defended the move, saying Australians understood the external factors that were impacting power prices.

“When you‘ve got a war in Europe which is causing panic on global energy markets and that has consequences for electricity prices here in Australia, I think people understand that,” he told Sunrise on Wednesday.

When he later appeared on the Today show, it was put to him these factors were already in place during the election, but he argued they had grown worse over the last several months.

“But these challenges have intensified, I think that is pretty clear,” Mr Chalmers said.

“Some of these electricity price rises by the way were happening under our predecessor. They tried to hide it during the election.

“But I think more broadly, war in Ukraine is causing havoc with energy markets. It’s pushing up electricity prices.”

“Our job is to get more renewable energy into the system which is what we’re doing. It’s to empower the regulators, which is what we’re doing as well.”

On when prices could finally start coming down, Mr Chalmers said “that remains to be seen”.

During the election voters were also told Labor was the only party with a “plan to get wages moving”.

JOE HILDEBRAND GIVES HIS BUDGET BREAKDOWN

Opinion: What Treasurer Jim Chalmers said in his maiden budget speech to parliament wasn’t necessarily what he meant. Joe Hildebrand breaks it all down.

THE ELECTION

WHAT HE SAID: This is a responsible budget that is right for the times and readies us for the future. It delivers on the priorities of the Australian people, and it repays their faith in a new government.

WHAT HE MEANT: All the tough things in this budget that will disappoint you are in fact a reflection of your wisdom and self-sacrifice in electing us.

INFLATION

WHAT HE SAID: Australians know a complex combination of challenges at home and abroad is pushing up the cost of living. They know that governments can’t make inflation disappear overnight.

Aussies better be tough, because there is an economic sh*tstorm coming. Picture: Jonathan Ng

WHAT HE MEANT: The truth is the best thing we can do for inflation is not give you money. I am reminding you that you are supposed to know this so you don’t ask us to.

REVENUE

WHAT HE SAID: While the temporary revenue boosts we are getting from higher employment and higher commodity prices will fade and fall, the profound and permanent spending pressures on the Budget are forecast to grow and grow.”

WHAT HE MEANT: Yes, we’ve had a motza windfall but I’m still not giving you any money.

COST OF LIVING

WHAT HE SAID: That’s what this Budget does – with a five-point plan for cost-of-living relief: 1. Cheaper child care; 2. Expanding Paid Parental Leave; 3. Cheaper medicines; 4. More affordable housing; 5. And getting wages moving again.

WHAT HE MEANT: Each of these measures has already been announced so we are putting them all together in a “five-point plan” so they sound new again. Besides, I already told you the best thing I can do about cost-of-living is nothing.

PAID PARENTAL LEAVE

WHAT HE SAID: Tonight, our Labor Government delivers the biggest expansion to Paid Parental Leave since its creation.”

Joe Hildebrand – Joe knows what the Treasurer is really saying.

WHAT HE MEANT: Remember when the most generous parental leave scheme in history was proposed by Tony Abbott? No you don’t and let’s keep it that way.

CHEAPER MEDICINE

WHAT HE SAID: This Budget also makes medicines cheaper by slashing the PBS maximum general co-payment to $30 a script from the 1st of January next year – saving up to $12.50 per script for about 3.6 million Australians every year.”

WHAT HE MEANT: We’ve announced this so many times even I’m sick of it, so this is the last you’ll hear about it.

HOUSING

WHAT HE SAID: I am proud to announce that we have just struck a new national Housing Accord between governments, investors and industry – to build the affordable homes our country desperately needs, and to help tackle our housing crisis. The ambition of this Accord is big and it’s bold.”

WHAT HE MEANT: The last Labor government to have an Accord lasted for 13 years and so we’re going to say the word “accord” as often as possible. Did I mention we have an Accord?

IN CONCLUSION

WHAT HE SAID: Australians know there are hard days to come, and hard decisions to accompany them.

WHAT HE MEANT: Just a reminder that smart and sensible people know I can’t give them any money and so if you complain about my Budget you are not smart or sensible.

Originally published as Treasurer defends ‘failed’ budget promises