What is actually within Chalmers’ control?
I’m not saying the Middle East situation isn’t contributing to inflation. Of course it is.
But I’m getting increasingly frustrated with the constant “it’s Iran” response.
The RBA has just raised rates to 4.60%, households are getting smashed, businesses are struggling with borrowing costs and investment, and we’re being told government spending is contributing to demand.
Former RBA governor Philip Lowe is now saying fiscal policy needs to be much tighter.
So what is the government actually doing right now to reduce the demand it can control?
That’s the bit I’m struggling with.
If inflation is running above target and monetary policy is being tightened to deliberately reduce demand, shouldn’t fiscal policy be doing more to take pressure off demand as well?
Instead, I keep hearing about savings and spending changes that take years to fully flow through. I’m interested in what is actually being done to reduce discretionary spending and demand in the current financial year.
As someone who works in finance, I’d be absolutely roasted if my response to a deteriorating P&L was “there are some external factors we can’t control” while barely talking about the things that are within my remit. The expectation is to identify the levers with the least risk and act right now.
And this is just my opinion, but I think it’s willfully ignorant of Jim Chalmers not to openly acknowledge and quantify the government’s contribution to the inflation equation, and explain what he is actually doing about the part he can control.
What am I missing?
Posted Sep 30, 2026, 3:42 AM UTC