Prime Minister Anthony Albanese has mounted a strong defence of his government's budget and the major shake-up it delivers, using a speech in Sydney to push back against criticism. Speaking at Australia's economic outlook summit, he set out his reasoning for pressing ahead with a contentious set of tax reforms.
The defence came at a pivotal moment for the changes. The government's overhaul of the capital gains tax discount and negative gearing passed through the lower house of parliament the day before, and the measures will now head to a short inquiry before facing their next test in the parliamentary process.
Albanese rebuffed criticism that the budget would be bad for businesses, and he defended the fact that the changes mean breaking an election promise. Rather than retreating from that point, he framed the decision as a deliberate choice to confront a problem head on instead of avoiding it.
The Prime Minister was emphatic that he did not intend to kick the can down the road any longer or merely tinker around the edges. While he said the government was consulting with business and other affected industries, he insisted it had no intention of letting the process become long and drawn out, vowing to act decisively and quickly.
Albanese set the reforms against the backdrop of a turbulent era, describing how the 2020s have been defined by a series of international shocks. He pointed to the COVID-19 pandemic, the war in Russia and Ukraine, and now the war in the Middle East as forces that have driven uncertainty and contributed to a rising cost of living.
He acknowledged that many Australians feel their standard of living has declined and that, while problems in the housing market had been building for longer, people no longer feel the economy is working for them. He also gave a nod to the rise of One Nation, linking populism to the frustration the government says it is trying to address.
Driving the argument home, Albanese warned that doing nothing was simply not an option. Pointing to social and economic dislocation seen overseas, he cast it as either a warning that Australia could act on or a preview of what might come, presenting the reforms as a choice the country needed to make.