Jim Chalmers’ small tax cuts spark significant budget concerns

Treasurer Jim Chalmers’ modest $5 weekly tax cuts face criticism for lacking significant cost-of-living relief.

Published

10 months ago

March 25, 2025

Ahron Young

Treasurer Jim Chalmers’ modest $5 weekly tax cuts face criticism for lacking significant cost-of-living relief.

In Short

Treasurer Jim Chalmers announced new tax cuts for Australians earning over $45,000, starting next year, with minimal weekly savings that critics view as inadequate for easing living costs. He linked these changes to efforts in lowering medical costs and emphasised the overall budget impact, despite scepticism regarding their significant contribution to public welfare.

Treasurer Jim Chalmers has announced new tax cuts affecting Australians earning over $45,000, set to take effect next year.

These changes will provide a minimal tax cut of $5 per week, amounting to $268 annually in 2026, and doubling to $536 in 2027.

While these adjustments build on prior tax cuts initiated by Labor, critics see the amounts as insufficient to significantly ease living costs.

Chalmers emphasised that the combined effects of multiple tax cuts would total around $50 per week by 2027-28 for the average worker.

Bulk billing

He linked this initiative to a broader strategy to alleviate cost of living pressures, which includes increased bulk billing and cheaper medicines.

The government is also raising low-income thresholds for the Medicare levy, ensuring one million Australians remain exempt or pay less tax.

Despite the modesty of the new tax cuts, the total budget impact is substantial, costing $17 billion by 2030.

Chalmers stated the government aims to balance budget constraints while addressing bracket creep and rewarding workers.

Overall, while Chalmers positions these changes as a significant contribution to public welfare, the reality of the tax cuts has been received with scepticism due to their trivial financial impact.

Markets tumble as Trump tariffs, Greenland rhetoric and Europe backlash collide

U.S. stocks plummet over 800 points amid renewed tariff threats and political tensions from Trump, sparking global trade concerns.

Published

1 day ago

January 21, 2026

Harvey Vargas

U.S. stocks plummet over 800 points amid renewed tariff threats and political tensions from Trump, sparking global trade concerns.

U.S. equities took a sharp hit as markets reacted to renewed tariff threats and heightened political rhetoric from President Donald Trump. The Dow plunged more than 800 points, with the S&P 500 and Nasdaq also sliding as investor nerves rattled risk assets.

The sell-off highlights growing concern around global trade tensions and geopolitical uncertainty, with markets struggling to price in what comes next for U.S. economic leadership and policy direction.

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Money

Gold hits record highs as investors flee risk

Gold surges amid global uncertainty, with February futures rising 1.71% to $4,674.20 per ounce, signaling safe-haven demand.

Published

3 days ago

January 20, 2026

Harvey Vargas

Gold surges amid global uncertainty, with February futures rising 1.71% to $4,674.20 per ounce, signaling safe-haven demand.

Gold is shining brighter than ever as investors flock to safe-haven assets amid global uncertainty. U.S. gold futures for February delivery jumped 1.71% to $4,674.20 per ounce, while spot gold rose 1.6% to $4,668.14.

The surge comes as geopolitical tensions continue to worry traders, prompting a rush into metals perceived as stable and secure. Analysts say gold is proving its status as the ultimate hedge during turbulent times.

Investors are closely watching markets as gold sets new benchmarks, signalling growing caution across the financial landscape.

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Money

Markets edge higher as 10-year yields hit new highs

Major stock indices rise slightly; 10-year Treasury yield hits 4.23% amid Fed Chair speculation, affecting small and mega-cap stocks.

Published

3 days ago

January 19, 2026

Harvey Vargas

Major stock indices rise slightly; 10-year Treasury yield hits 4.23% amid Fed Chair speculation, affecting small and mega-cap stocks.

All major stock indices are starting the week slightly higher, giving investors cautious optimism. Analysts are keeping an eye on movements in small caps and mega-cap tech stocks amid these early gains.

The yield on the 10-year Treasury note has climbed to 4.23%, the highest since last September. This follows Kevin Warsh emerging as the frontrunner for the next Federal Reserve Chair, sparking speculation on future monetary policy.

Rising yields could trigger a pullback in small-cap stocks, while investors may pivot toward mega-cap tech, expected to deliver strong earnings growth. Overall, the market is likely to see a neutral to slightly bearish trend next week due to overbought conditions.

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