Australian news and politics recap June 18: Chalmers ‘proud’ but not ‘satisfied’ as Labor maps next steps

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Scroll back through for updates from Treasurer Jim Chalmers on Australia’s economic situation, Prime Minister Anthony Albanese discussing his upcoming NATO trip and potential for a meeting with US President Donald Trump and more.

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Former Australian ambassador to the US Arthur Sinodinos says President Donald Trump’s decision to cancel a meeting with Prime Minister Anthony Albanese at the G7 shouldn’t be seen as a diplomatic snub, but he still urged Albanese to make the trip to next week’s NATO summit.

Speaking to Sky News, Mr Sinodinos said the cancelled meeting didn’t reflect the overall strength of the US-Australia alliance, but argued that face-to-face time with the US President remains essential.

“It’s important that the Prime Minister eyeballs the President,” he said, stressing the need to personally make the case for fairer tariff treatment and the strategic value of AUKUS.

“The sooner they get together, the better.”

In today’s episode of NewsWorthy, Ben O’Shea breaks down three major stories making waves across Australia and the globe.

Optus has been hit with a staggering $100 million fine over its massive data breach, with regulators slamming the telco for failing to properly safeguard customer information.

Meanwhile, as tensions escalate in the Middle East, an expert warns that efforts to topple the Iranian regime could seriously backfire, risking even greater instability and global security fallout.

And in WA, a horror flu season is already pushing hospital systems to the brink, prompting health officials to urge residents to get vaccinated as case numbers soar past last year’s figures.

Listen here.

Treasurer Jim Chalmers says he’s “briefed daily” on the economic impacts of the conflict in the Middle East.

The Israel-Iran conflict has gripped the world after Israel launched what it labelled a “preemptive strike” on Iran last Friday over fears of its expanding nuclear technology.

Dr Chalmers said he was watching with keen interest, especially after the hike in oil prices and concerns over supply routes and sealines.

“I’m briefed fairly regularly… at the moment daily, on the economic implications of what we’re seeing in the Middle East,” he told the National Press Club.

“I’m briefed daily on that.

“It is substantial, it is high-quality, it’s across government, and it recognises that a big part of our economic challenges right now are security-related.

“Some of the broader strategic considerations, the risk of conflict in our own region, closer to home - that’s really a central feature of the advice that I get.”

He said those briefings were important to shape Labor’s resilience agenda, which he wants to strengthen in the Albanese Government’s second term.

Treasurer Jim Chalmers was forced to defend Australia’s investment into defence after calls to lift it amid a tense global environment.

Among the voices questioning Australia’s current spend of 2 per cent of GDP has been US Secretary of Defence Pete Hegseth, who has suggested it should be lifted to 3.5 per cent.

“We are already substantially increasing our defence investment,” the Labor Minister said.

“We are talking about tens of billions of dollars in extra investment in the coming years because we recognise how important it is.

“To go from 2pc of the economy to 2.3pc of the economy by the early 2030s represents a very substantial increase in our Budget for defence spending.

“I understand the risks and the threats.

“Now, of course, our partners would like us to spend more on defence. It’s not unusual.

“When it comes to our American partners, again, that’s the message they’re taking to all of our friends in the world, not just us.”

Treasurer Jim Chalmers says legislation after the upcoming productivity round table “won’t be off the table”.

The Labor Minister said he didn’t want to pre-empt how the meeting would play out, but he would act if there was a consensus for it.

“It’s difficult to pre-empt the steps that go beyond ideas that people bring to the round table,” he told the National Press Club.

“It depends on the nature of the ideas. It might not be feasible or wise to wait another two or three years to pick up and run with them.

“Let’s see what people propose. Let’s see what the nature of the changes are before we make some of those decisions.”

Addressing the housing crisis in Australia, Treasurer Jim Chalmers has admitted that there are challenges to achieving Labor’s 1.2 million home creation target but labelled it “not impossible”.

Housing was one of the key issues Prime Minister Anthony Albanese promised to act on at the 2025 Federal Election, and he visited numerous housing construction sites to unveil pledges.

By June 2029, Labor has promised to support the building of 1.2m homes, and 55,000 social and affordable homes.

Dr Chalmers said he and Housing Minister Clare O’Neil were working hard to address the issues.

“We recognise we need to build more homes sooner,” he said.

“We have always acknowledged - Clare, her predecessor, certainly from my point of view - that the 1.2 million homes is a very ambitious target, deliberately so.

“And it will be hard to get there, but it’s not impossible to get there.”

Treasurer Jim Chalmers hasn’t made it clear if he’ll invite the Opposition to his upcoming productivity roundtable in August.

National Press Club president Tom Connell asked if members of the Coalition would nab one of the few seats in the Cabinet room, which only holds about 25 people.

Connell: “The small room you alluded to - does that mean no room for the Opposition?”

Chalmers: “We’re finalising the invitation list. But we haven’t finished the work on that.

“There will be opportunities for the Opposition to be constructive, whether they’re inside the room or not inside the room. I think, regardless of the final invitation list, it would be a very good thing for Australia if we all did take a constructive approach to it.”

Treasurer Jim Chalmers has set some ground rules for his upcoming productivity round-table, saying there will be a test for those who want to participate.

He told a National Press Club address on Wednesday that he wanted to put responsibility on everyone to find a consensus on a “practical, pragmatic and problem-solving middle ground”.

“We want to encourage participants to build broad Coalitions on changes that cross the metaphorical aisle,” he said.

“We want people at the round table to meet the three tests.

“First of all, the ideas should be put forward in the national interest.

“Secondly, ideas or packages of ideas should be budget neutral at a minimum, but preferably budget positive overall.

“And thirdly, ideas should be specific and practical, not abstract or unrealistic.”

Treasurer Jim Chalmers has shared further details about his upcoming productivity roundtable while speaking at the National Press Club.

Anthony Albanese had unveiled plans for the roundtable at the same forum last week.

He said the discussions will be held over three days, from August 19-21.

It will be held in the Cabinet room, meaning it will likely only host about 25 people, and will be kicked off by the PM.

“It won’t be another huge summit. It will be a small group with a targeted agenda,” he said.

“There will be a mix of government, business, union and civil society representatives and experts.”

The Productivity Commission’s ongoing investigation into productivity in Australia, which has been laid out in interim reports into five key pillars they explore, would help inform the talks.

Dr Chalmers told the Club he’s invited Reserve Bank of Australia governor Michele Bullock to attend.