Chalmers Defends Budget Update Amid Bondi Terror Aftermath, Pushes for AI and Productivity Reforms

Treasurer Jim Chalmers appeared on ABC RN's Politics with Michelle Grattan on December 17, 2025, to discuss the government's response to the Bondi terror attack and the mid-year budget update. He emphasized a dual focus on combating antisemitism and tightening gun laws, rejecting an either/or approach. Regarding the budget, Chalmers highlighted an $8.5 billion improvement across the forward estimates and projected deficits of $37 billion for FY2026-27. He defended the government's stance against cutting tobacco excise, citing a $7.6 billion revenue gap over four years due to illegal tobacco, and announced an additional $350 million for compliance. Chalmers identified inflation, productivity, and global uncertainty as the economy's three main challenges, noting recent inflation uptick but forecasting a return to the Reserve Bank's target band by FY2027-28. He touted four consecutive quarters of productivity growth and positioned AI and energy transformation as key future opportunities, referencing the recently released National AI Plan and ongoing economic reform roundtable initiatives.