The Albanese government has been dealt a political headache after unredacted Treasury documents revealed that Treasurer Jim Chalmers has been advised to raise taxes to return the federal budget to a sustainable surplus—while being warned that the government is unlikely to meet its 1.2 million homes target by the 2029 deadline under the National Housing Accord.
The documents were inadvertently released under a Freedom of Information request submitted by the ABC and were part of a confidential Treasury briefing prepared after Labor’s May 3 re-election victory. Treasury requested the content be deleted, but the ABC published it, citing clear public interest.
The advice outlines the need for “additional revenue and spending reductions,” recommending broad tax reform including increases to indirect taxes and superannuation levies. Labor has already proposed doubling the tax rate on super balances exceeding $3 million, from 15% to 30%, a move the government says would affect just 0.5% of Australians.
However, the Opposition has slammed the proposal, arguing the non-indexed threshold and taxation of unrealised gains unfairly penalise those with property or long-term investments within their super.
Of growing concern is Treasury’s recommendation to reassess the housing goal of 1.2 million new homes. Housing Minister Clare O’Neil was advised to consider how migration policy and skills training could bolster the construction workforce, and to leverage state and territory funding to drive up building rates.
Environment Minister Murray Watt told ABC RN on Monday that ministers routinely receive such internal advice and insisted the government remains committed to its housing targets, acknowledging the scale of the challenge.
“It’s ambitious,” he said, “but we’ve already taken concrete steps to get there.”
