Treasurer Jim Chalmers has shared a hopeful outlook for 2025, highlighting progress in taming inflation, bolstering job creation, and delivering targeted cost-of-living relief. As the country looks to the new year, Chalmers insists the government’s policies are laying the groundwork for sustained economic stability.
One of the government’s notable achievements is its success in reducing inflation. “Inflation has more than halved since we came to office,” Chalmers said, pointing out that it now sits at its lowest level in almost four years and within the Reserve Bank’s target range. The Reserve Bank of Australia (RBA) has echoed this confidence, with its recent minutes suggesting inflation is moving “sustainably” in the desired direction.
Employment numbers tell a similarly positive story, with over a million jobs created during the government’s term—a record for any administration in a single term. Chalmers ties this achievement to rising real wages, which had been declining before Labor took office. “Real disposable household incomes are growing again—they were going backwards when we came to office,” he said.
The government’s cost-of-living measures aim to address pressures still felt by households. Tax cuts, cheaper childcare, reduced medicine costs, energy bill relief, and rent assistance are among the initiatives rolled out during the Albanese government’s tenure. These efforts have been paired with fiscal responsibility, Chalmers notes, with the budget in surplus and national debt reduced by $177 billion.
Despite these gains, consumer confidence remains a lingering concern. While it has improved since mid-year, buoyed partly by income tax cuts, levels are still below historical averages. Chalmers acknowledged this gap, saying, “Even as we’ve made progress together in the aggregate numbers, we know it doesn’t always translate to how people are feeling and faring.”
The Treasurer also pointed to global uncertainties, including risks tied to China’s economic outlook and geopolitical tensions, as potential challenges for the year ahead. “The outlook for China remains uncertain, and conflict and trade tensions are likely to weigh on the global economy next year,” he said.
Economists remain cautiously optimistic, with predictions that inflationary pressures will ease further, growth will improve, and unemployment will stay at historically low levels. For Chalmers, this represents a hard-earned shift in trajectory. “The worst of the inflation challenge is behind us, better days are ahead of us,” he said.
Chalmers’ reflections are personal as well as political. He shared a story about his seven-year-old daughter, whose confident declaration that “next year” would be her favourite year serves as a hopeful metaphor for the national outlook. While challenges remain, the government is counting on Australians to embrace the opportunities that 2025 promises to bring.
The test, as ever, will be whether these policies translate into tangible improvements for households across the country. For now, Chalmers’ optimism offers a hopeful note as 2024 comes to a close.
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