Treasurer Jim Chalmers says he’s not too bothered about the accidental public disclosure of advice from his department about taxes. Photo: Michelle Kroll.
Labor began its second term in office with advice from Treasury that the only way to fix the budget was to raise taxes.
Following the May election, the Federal Government was handed an incoming government brief that told Treasurer Jim Chalmers a sustainable budget could not be reached without additional revenue raising and cuts to spending.
It also said Labor’s commitment to build 1.2 million homes over five years would not be met.
Housing Minister Clare O’Neil also received the briefing document.
But the department failed to fully redact sensitive parts of its advice on the brief when responding to a Freedom of Information (FoI) request from the ABC.
Subheadings and contents pointing to the advice over raising taxes were left on the document and were subsequently reported. Details of which taxes should go up were deleted.
Treasury tried unsuccessfully for its initial FoI response to be deleted and not reported once it realised the mistake it had made.
It is an embarrassment for the Federal Government, which began talking post-election about the need for tax reform.
The Treasurer, however, is playing it cool and suggesting his department’s mistake is no big deal.
“Obviously Treasury advises governments of both political persuasions that advice can’t always be adequately captured in the subheadings which are reported in documents which are sent in error,” he said.
“What’s happened here is a Treasury official has sent those documents in error. That sort of thing happens from time to time.
“I’m pretty relaxed about it, to be honest, because of course Treasury provides advice for incoming governments and no government typically goes into the detail of that.”
Dr Chalmers suggested there was nothing new in the disclosures from what the government had already been openly talking about, particularly in relation to housing and the budget.
“We have already made it really clear that we will need to do more to meet our housing targets,” he said.
“We have already made it really clear that we will do more to make our economy more productive and more resilient.
“We have made it clear that we need to build on the progress we have made in repairing the budget so that we can make the budget even more sustainable.
“I don’t think it’s particularly surprising that Treasury provides advice in their incoming government brief.
“I don’t think it’s particularly surprising that the Treasury has highlighted, as I have personally, that we need to do more to make the budget more sustainable.”
The Treasurer stressed that the government’s housing target would be met, saying it was necessary to be ambitious on housing.
The Opposition however is crying foul, saying Labor is hiding the truth on its plans for taxation, spending and housing.
“This has come to light through a Freedom of Information request, to which Treasury responded by inadvertently exposing advice Labor never intended Australians to see,” Deputy Opposition Leader and Shadow Treasurer Ted O’Brien said.
“Treasury has made it clear – Labor cannot fix the budget without raising taxes and cutting spending.
“Yet the only tax measure Labor has put forward is their unfair superannuation tax on unrealised gains.
“Anyone who thinks Labor’s super tax on unrealised gains is the end of their campaign to tax family savings is kidding themselves.
“Since coming to government, Labor has racked up an extraordinary $144 billion in new spending decisions – now they’re coming after your nest egg to pay for it.
“Australians deserve to know what’s next. Will Labor extend these taxes to family homes? Family trusts? Small businesses? The Albanese Government talks about transparency but hides the truth.
“Behind closed doors, Treasury is telling Labor what the Coalition has been saying all along – they have a spending problem, they lack fiscal discipline, and they are preparing to slug Australians with higher taxes.”
Steven Kennedy, who was Treasury Secretary at the time the incoming government brief was prepared and delivered to the newly re-elected Labor government, has since been promoted to head up the Department of Prime Minister and Cabinet.
