Treasurer Says Australians Under ‘Substantial Pressure’ as Economy Underperforms

Australian Treasurer Jim Chalmers speaks to the media during a press conference at Parliament House in Canberra, Australia on Nov. 21, 2024. AAP Image/Lukas Coch

Treasurer Jim Chalmers has acknowledged that the economy is weaker than anticipated as new figures revealed the country’s sluggish growth.

“Even as we make welcome progress in some of the key economic indicators, inflation coming down, wages growing, the tax cuts rolling out, we know that people are still under substantial pressure,” Chalmers told Sky News as he spoke on the latest national data.

The Australian economy expanded by 0.3 percent in the September quarter, marking a slight improvement over the 0.2 percent growth in the previous three months.

However, the quarterly growth missed the anticipated 0.5 percent increase, according to the latest data from the Australian Bureau of Statistics (ABS), released on Dec. 4.

The economy grew by 0.8 percent on an annual basis, down from 1 percent in June and below the expected 1.1 percent growth.

Chalmers pointed to a positive trend in real household disposable income, however, which is growing per capita. The federal and state governments have pushed through wage increases for workers across several public sectors.

He noted that while GDP growth was weaker than expected, falling inflation and wage increases offered some relief.

“That’s a good thing because elsewhere in the economy, we’re seeing a lot of weakness,” he said.

However, Chalmers rejected claims that the economy is in recession, attributing ongoing challenges to years of neglect under the previous government.

Shadow Treasurer Says Living Standards Falling

Shadow Treasurer Angus Taylor described the latest figures as an “economic scorecard” for the Albanese Labor government.

“It confirms what every Australian is now feeling–Labor is sending our economy in the completely wrong direction,” Taylor said in a statement.

He attributed the economy’s faint pulse to migration, stating, “There is one person moving to Australia every 44 seconds. This does not make for a healthy economy.”

Taylor pointed to seven consecutive quarters of GDP per capita decline, claiming Australians’ living standards have suffered their largest recorded drop.

“Australians’ living standards have fallen 8.7 percent since the election—the largest fall in the OECD per capita,” he said.

He also accused Labor for planning for a “big Australia, a big government with big spending.”

He called for measures to boost investment, reduce government waste, and lower taxes.

“The Coalition will get Australia back on track by boosting investment, increasing competition, cutting government waste and red tape, rebuilding business, lowering taxes and delivering secure, low emissions energy.”

Criticism of Opposition Economic Policies

In response, Chalmers criticised opposition MPs Angus Taylor and Peter Dutton for a lack of meaningful action on cost-of-living pressures.

“Our political opponents do nothing about it; people will be worse off as a consequence,” Chalmers said.

He also pointed to Labor’s taxpayer-funded measures such as energy rebates, cheaper medicines, rent assistance, and fee-free TAFE, which he said were part of a broader strategy to improve living standards.

Addressing criticism of government spending and its impact on interest rates, Chalmers said, “It’s hard to justify the position taken by our critics that the economy is running too hot. The biggest risk to household budgets and the economy is a Coalition government.”

He also called on opposition leaders to clarify their stance on defence spending, the most significant component of government expenditure, if they believe cuts are necessary.

“Let’s hear what Peter Dutton is proposing when it comes to winding that back.”