Impossible business growth underpins house of cards Budget

National Press Club address by Dr Jim Chalmers, Treasurer, National Press Club, 26 March 2025

From Parliament House, Canberra: Last year Australia experienced record numbers of business failures. While the percentage of businesses was not as high as in 2013, the actual number of failed businesses was higher. Further, productivity growth, a key driver of living standards, has been negative and remains flat. Yet underpinning this election budget is a rebound in private sector growth that is difficult to justify.

Writing in the Unfiltered newsletter, Alexandra Marshall had this to say:

On the Budget, Michael de Percy was down at Parliament House today listening to Treasurer Jim Chalmers being questioned – but he didn’t get to ask his... Which is a shame, because I’m willing to bet Mr Chalmers would visibly squirm trying to answer it. You can read all about it here.

Writing in the Morning Double Shot newsletter, Terry Barnes had this to say:

Fresh from the Budget lock-up, Michael de Percy highlights how the Budget assumptions about private sector growth, and its ability to contribute to the revenue bottom line, are probably too good to be true. If so, the huge spending already locked in plus to be announced in the election campaign will incur even larger debt, and thus deficit, to cover the magic pudding profligacy that now has largely been endorsed by both sides.

My latest in The Spectator Australia, Impossible business growth underpins house of cards Budget.

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