Treasurer Jim Chalmers addressed a range of economic issues during a joint press conference with Skills Minister Andrew Giles in Brisbane on 15 January 2025. Chalmers provided a measured response to concerns about the Australian dollar’s recent slide to 61.9 cents, highlighting global influences rather than domestic policy as the key drivers.
“We’ve all seen in our economy in the last little while that the dollar has come off a bit,” Chalmers said. “It’s trading, the last I looked this morning, at 61.9 cents. That’s a bit lower than it has been towards the end of last year. But it’s not the only thing that determines inflation in our economy.”
Chalmers pointed to China’s economic slowdown and US interest rate movements as primary factors. “The reason our dollar has come off is really a combination of the global community’s views on China—often our dollar is seen as a proxy for what’s happening there—combined with people’s expectations on interest rates in the United States,” he explained.
The Treasurer dismissed suggestions from the Opposition that the government’s policies were to blame. “What Peter Dutton has been saying about this is so ridiculous,” Chalmers said. “Now Peter Dutton wants you to believe that we are responsible for what’s happening in the Chinese economy or the American economy. That’s why he has no credibility when it comes to the economy.”
Reflecting on the government’s achievements, Chalmers emphasised progress in reducing inflation and improving living standards. “Inflation was higher than six and rising when we came to office. It’s now got a two in front of it. Real wages, incomes, and living standards are growing again,” he noted.
Chalmers took aim at the previous government, pointing to the challenges his team inherited. “You think about the economy we inherited two and a half years ago—interest rates were already going up, real wages and living standards were falling, there was a trillion dollars of Liberal debt with almost nothing to show for it,” he said. “We’ve delivered two surpluses, a $200 billion turnaround in the budget, and less debt.”
While acknowledging ongoing cost-of-living pressures, Chalmers struck a hopeful tone. “We know that people are still doing it tough. But we’ve made some welcome and encouraging progress cleaning up the mess that we were left,” he concluded.
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