Finance Minister Katy Gallagher has dismissed reports of tension between Prime Minister Anthony Albanese and Treasurer Jim Chalmers, calling the speculation “overblown”.
The comments follow reports of disagreements over government spending and the broader direction of its economic policy.
Speaking with David Speers on ABC’s Insiders on Sunday, Gallagher rejected suggestions of a rift after Chalmers said he accepted responsibility for government decisions. Reports had also portrayed him as the strongest advocate for tighter spending controls.
Asked whether Chalmers appeared to be the only senior minister accepting responsibility for the government’s political and economic challenges, Gallagher said she had not interpreted his comments that way.
“I think he was simply saying that he takes responsibility for the decisions he makes as Treasurer, just as I make them as Finance Minister, but collectively, and it’s not just the ERC, it’s the cabinet and the caucus, stand behind the decisions we’ve made.”
Gallagher stressed that policy decisions are made collectively, with all ministers sharing responsibility for the government’s actions.
“These are collective decisions, all of us are part of those decisions, and we all take responsibility for them,” she said.
The Finance Minister also rejected claims that Chalmers had been engaged in an internal dispute with Albanese.
Katy Gallagher (pictured) rejected reports of tension between Albanese and Chalmers
“I’ve seen the stories written in the last few days. I think, from my point of view, they’re overblown,” she said.
Gallagher said it was normal for the Treasurer and Finance Minister to present different options during economic updates, budget discussions and the mid-year economic update.
She added that vigorous debate was expected within government and could be constructive, particularly because senior ministers had distinct responsibilities.
“I think it’s a very professional and respectful relationship,” she said of Albanese and Chalmers.
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“They’ve known each other a long time. We’ve worked in these roles, the three of us, for a number of years now.”
Pressed on whether differences between a prime minister and treasurer inevitably created tension, Gallagher acknowledged that ministers brought different perspectives but denied there was any personal conflict.
“We’ve all got slightly different jobs and come at things from slightly different perspectives as you would expect,” she said.
“Robust discussions as part of that through our processes, I think, is actually a good thing.”
The Finance Minister also rejected claims Chalmers (pictured) had been clashing with Albanese behind the scenes
She described the relationship between Albanese (pictured) and Chalmers as “professional and respectful”
“There is always a contest of ideas and I think that’s healthy and good.”
Gallagher also defended Labor’s fiscal management, arguing the government had improved the budget position since taking office while still funding essential services.
The Reserve Bank is widely expected to raise rates on Tuesday, which would mark its fifth increase this year, as Labor faces pressure to rein in spending amid stubborn inflation.
‘We’ve improved the bottom line in every budget and every budget update,’ she said.
Gallagher acknowledged mounting spending pressures from the NDIS, Medicare, aged care, defence and interest payments on government debt but rejected suggestions the government was ignoring the problem.
‘The pressures on the budget are real,’ she said.
‘They are increasing and we have to deal with them, and we are dealing with them.’