Watt urges Labor to back Chalmers amid budget cuts

Environment Minister Murray Watt told Labor colleagues to stop undermining Treasurer Jim Chalmers. The government is currently searching for budget savings to ease inflation pressures. Watt stated that members have a responsibility to support one another during difficult times. He added that many economic factors are beyond any treasurer's control.

Watt addressed speculation about tensions between Chalmers and Prime Minister Anthony Albanese. When asked if internal leaking against the treasurer should end, Watt replied, "Yes, I would." He defended Chalmers' performance while acknowledging criticism from within the party. The cabinet expenditure review committee meets on Monday to consider spending reductions for next month’s mid-year budget update.

Two opinion polls released on Monday added pressure on the government. The Resolve Political Monitor, published in the Age and Sydney Morning Herald, showed Labor’s primary vote at 28%. This compares to 34.6% at last year’s election. The Coalition fell one point to 22%, while One Nation remained at 25%. A separate Redbridge poll in the Financial Review recorded a two-point decline for Labor to 26%. In that survey, the Coalition rose four points to 25%, and One Nation fell one point to 28%.

The upcoming meeting follows the Reserve Bank’s interest rate increase last week. Governor Michele Bullock said governments must manage budgets independently of the bank. She identified both public and private spending as contributors to excess demand in the economy. Watt also criticized the Coalition and minor parties over spending measures awaiting passage in parliament.

Watt accused the Coalition of blocking $10 billion in government savings measures. At the same time, the opposition is demanding further spending reductions. These potential savings include changes to the private health insurance rebate for people over 65. Albanese confirmed that public service spending will be examined ahead of the budget update expected in mid-December.

Departments were asked last year to find potential savings of up to 5% of their annual budgets. The government may also restrict its $7 billion home battery subsidy program. Announced in April 2025, the battery program has supported more than 600,000 installations. It could face means testing. Electric vehicle subsidies have separately cost more than anticipated.

Angus Taylor announced an opposition red tape razor gang on Monday. The group aims to reduce the burden that costly regulation places on businesses. The budget update is scheduled for release in mid-December.