(Canberra, February 3, 2026) —
Australian Treasurer Jim Chalmers is facing a critical 12-week period to deliver on ambitious budget policies amid clashes with economists over government spending and a renewed focus on tax reform.
- Treasurer Jim Chalmers has 12 weeks to demonstrate the success of his budget policies, according to the Australian Financial Review.
- Chalmers is defending government spending against claims it is fueling inflation, as reported by Sky News Australia.
- Tax reform is now a top priority for Chalmers as he prepares the upcoming budget, according to the Sydney Morning Herald.
- Parliament has resumed, but the opposition Liberal party is not expected to pose an immediate challenge, The Australian reported.
Australian Treasurer Jim Chalmers is under pressure to prove the effectiveness of his economic policies within the next 12 weeks, the Australian Financial Review reported. This comes as Chalmers defends government spending against accusations that it is contributing to rising inflation and simultaneously prioritizes tax reform ahead of the upcoming budget.
Chalmers Defends Spending Amid Inflation Concerns
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Chalmers has rejected claims from the opposition that Labor’s policies are driving inflation, stating he is “impatient for reform,” according to The Guardian. He has also clashed with economists over the same issue, with Sky News Australia reporting that economists are questioning the impact of government spending on inflation rates.
Tax Reform Takes Center Stage
The Sydney Morning Herald reported that Chalmers has placed tax reform at the top of his budget plans. This shift in focus suggests a broader strategy to address economic challenges and potentially generate revenue for key government initiatives.
Parliament Resumes
As Chalmers navigates these economic challenges, Parliament has resumed sitting, The Australian reported. However, the Liberal party is not currently positioned to effectively challenge the government, indicating a period of relative stability for the Labor administration.
Time.news based this report in part on reporting by The Australian, AFR, Sky News Australia, SMH.com.au, and The Guardian and added independent analysis and context.
