Treasury Downplays Leaked Advice on Higher Taxes

Treasury advice leaked, urging higher taxes, but Finance Minister Jim Chalmers downplays the issue. The leaked advice, intended for the government, was accidentally sent to journalists. Chalmers emphasizes that the government's focus remains on economic growth and job creation, not solely on increasing taxes. The incident highlights the importance of secure communication channels for sensitive information.

In a recent development, sensitive government advice was inadvertently shared with journalists, revealing that the federal government's ambitious housing target may not be met. The advice, intended for the Treasury department, warned that the goal of building 1.2 million homes by 2029 would not be achieved and suggested raising taxes to ensure a sustainable budget [1].

Finance Minister Jim Chalmers, however, expressed a relaxed attitude towards the incident, stating that such errors could occur from time to time. He emphasized that the government's focus remains on economic growth and job creation, rather than solely increasing taxes. "Treasury advises governments of both political persuasions, and advice can't always be adequately captured in subheadings," Chalmers said [1].

The leaked advice comes at a time when the government is facing significant challenges in meeting its housing targets. A report from the National Housing Supply and Affordability Council in 2025 warned that the government would fall short of its goal by about 300,000 dwellings [2]. Another report, commissioned by the Property Council of Australia, showed that the government needed to build another 462,000 homes to meet its 2029 target [2].

Despite these warnings, Chalmers maintains that the government is committed to its ambitious housing target. He acknowledged that the advice reflected what his department had been saying since before the election and that the government would need to invest more effort and resources to achieve the target [2].

The incident highlights the importance of secure communication channels for sensitive information. While Chalmers expressed his intention to strengthen Australia's economy ahead of a trip to South Africa, the focus domestically will be on boosting productivity. The government has finalized an agenda for an economic reform roundtable to be held in August, with key figures including Reserve Bank governor Michele Bullock, Productivity Commission chair Danielle Wood, and Treasury secretary Jenny Wilkinson [2].

The leaked advice also touches on the broader issue of budget sustainability. Chalmers confirmed that addressing the federal budget's structural deficit is a key priority for Labor, to be achieved through less spending, more savings from income derived from commodity prices, and some higher taxes [2].

References:
[1] https://www.canberratimes.com.au/story/9015526/home-truths-on-housing-target-in-leaked-treasury-advice/
[2] https://www.theguardian.com/australia-news/2025/jul/14/jim-chalmers-defends-labor-housing-targets-after-treasury-briefing-information-released-to-abc