Australia news live: Jim Chalmers promises more tax reform in budget as war threatens to send inflation past 5% | Australia news

Jim Chalmers today he will promise to deliver a triple “ambitious reform package” in his May budget that would rebuild fiscal buffers, make the tax system fairer and improve the country’s lagging productivity performance.

In a major speech in Melbourne today, the treasurer will pledge to “make tough decisions” on the upcoming budget amid the ongoing US-Israeli war against Iran that “raises inflation risks, suppresses growth and adds to already high uncertainty”.

In excerpts from his speech to Australian Business Economists, Chalmers discussed Labour’s current tax policies – including upcoming income tax cuts – but signaled no final decisions had been made on future changes.

We are working on more tax reform in the budget; How much we can make in May depends on financial evaluations, international developments and cabinet discussions.

There is wide expectation that the budget will include a plan to reduce the 50 per cent capital gains tax credit, but the treasurer warned that no final decision has been made.

He said tax reform “will be guided by some clear principles.”

These included addressing intergenerational equity, encouraging productive business investment – ​​“if we can afford it” – and making the system “simpler and more sustainable”.

We know that an outdated tax system negatively impacts the opportunities facing young Australians and future generations.