Chalmers warns of a year of economic strain and urges respect for One Nation voters

In a speech to The Australia Institute, Treasury secretary Jim Chalmers projected a year of financial stress for the Australian economy, pointing to persistent inflation, four interest-rate increases and soaring petrol prices linked to the war in Iran. He urged progressive politicians to avoid condescension toward supporters of One Nation, emphasizing that dismissive attitudes are unhelpful. Labor intends to roll out a 30% minimum tax on discretionary trusts on Wednesday, a key element of its upcoming budget, though the Greens have signaled they may launch a Senate inquiry.

Within the NSW Right faction, Labor MPs expressed concerns that recent tax changes, including the trust tax and capital-gains adjustments, could alienate tradespeople. Chalmers also noted that the government expects the trust reforms to be legislated within the year, despite criticism from accountants and small-business groups.