Chalmers warns of Coalition ‘ambush’ on spending, Taylor slams lack of crisis ‘buffers’

Treasurer Jim Chalmers accused his Coalition counterpart Angus Taylor of plotting an “ambush” on Australians with billions in spending cuts, while the opposition shadow accused Labor of exhausting the nation’s financial buffers just as a crisis looms.

In an at-times sniping live TV debate on Wednesday, both men staunchly avoided being drawn by Sky TV host Ross Greenwood on how they plan to address major structural problems including limp productivity, a faltering tax system and ongoing budget deficits.

Instead, they sought to draw contrasts over their approaches to economic policy.

Mr Chalmers insisted Labor will continue to drive its agenda of higher wages growth, household energy support and investment in health, education and skills.

Slamming Mr Taylor for hiding its plans for “secret spending cuts” that he would use to pay for “the Coalition’s plan to build taxpayer-funded nuclear plants,” Mr Chalmers raised the spectre of Tony Abbott’s first budget, which sought to overcome rising debt through sharp reductions in outlays.

“That’s not an economic plan,” he said. “That’s an ambush, and it’s just like 2013-14.”

“There could not be a more important time for the responsible economic management which has been the defining feature of this Albanese government.”

“And there could not be a worse time to risk Peter Dutton’s coalition of cuts and chaos, which would make Australians worse off and take Australians backwards. When Peter Dutton cuts, every Australian will pay.”

Shrugging off the barbs, Mr Taylor repeatedly emphasised a key question for voters: “Who do you trust to manage the economy?”

“We’ve seen in the last three years, Australians have become poorer, and its clear Australians can’t afford another three years like the last three.”

Vowing to get more housing into the market, lowering fuel costs, and fixing the “budget so we can protect our nation into the future,” Mr Taylor said he would bring his 25 years in business and economics to the treasury portfolio.

For much of the one hour debate — the first of three scheduled during the campaign between the two men widely regarded as potential future leaders of their respective parties — the focus was on cost-of-living, weak productivity and complaints that neither side is tackling the hard issues with real policy options.

However, it also took a turn to the personal, as Mr Greenwood asked Mr Chalmers why — despite being widely regarded as the government’s best communicator and a hard worker — whether he suffered from a “glass jaw” in the face of criticism.

Over time, he said, he has come to the view that “you take the good with the bad”, and that does mean he can “get a bit grumpy sometimes”.

“I’ve learned over time to focus on the objective observers of the job that I’m doing, and I think ultimately the Australian people will judge that, rather than the kind of partisan commentators.”

Mr Greenwood then turned to Mr Taylor, saying that he is described by friends and foes as an “incredibly gifted” man, a Rhodes Scholar who was born and told “many times” that he is a “future prime minister”.

The “question is, some people suggest that maybe you don’t put the work in? You may have heard that as well?”

Mr Taylor said he, and Mr Chalmers, receive “lots of free advice”.

“And I tell you what, I work every single day for those hard working Australians who work, Jim’s electorate and in my electorate, and right around Australia.

“That’s what I’m here for.”

Questions over Donald Trump tariff war

Much of the debate was taken up with questions about the resilience of the budget and Australia’s economy in the face of Donald Trump’s worsening tariff war.

Mr Chalmers slammed the US president’s moves as “needless and self-defeating”, before accusing the Coalition of cosying up to the worst elements of the Trump administration, including the Department of Government Efficiency, run by billionaire Elon Musk.

“Here I think we’ve got the first contrast of the debate tonight… because we’ve got a prime minister standing up for and speaking up for Australia,” Mr Chalmers said.

“And we’ve got an opposition leader and an opposition which is absolutely full of these kind of DOGE-sycophants who have hitched their wagon to America… [with] slogans and policies, and especially cuts which would make Australians worse off”.

Mr Taylor countered, saying the Coalition has a long history of supporting open trade, and slammed Labor move to halt live exports.

On whether Australia faces a recession, Mr Taylor suggested the treasurer must be expecting one because he this week emphasised market predictions there would be four Reserve Bank interest rate cuts this year.

“He likes to forecast. We need someone who wants to manage the economy,” Taylor said.

Mr Chalmers rejected he was anticipating a recession and accused the Coalition of lying about the matter “multiple times”.

The debate then moved to how both men would manage a downturn involving a sharp increase in the unemployment rate as a result of the trade war.

Mr Chalmers insisted the economy was “going into this uncertainty around the world from a position of strength”.

“What we’ve been able to do, which is unusual in the world, is get inflation much lower than what we inherited from Angus at the same time as we maintain very low inflation.”

Mr Taylor hit back saying that under Labor the economy has lagged and federal debt is rising towards $1.2 trillion.

“The buffers are gone,” he said.

Asked whether Mr Chalmers would seek to do a deal after the election with the Greens, whose leader Adam Bandt on Wednesday pledged to ban negative gearing, the Treasurer insisted Labor will win the election.

“We’re not entering into a coalition with the Greens. We seek to govern in a majority. We don’t take our cues or our economic policies from the Greens,” Mr Chalmers said.

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