For decades prime ministers and their treasurers have pursued productive but complicated working relationships.
Labor’s legendary duo of Bob Hawke and Paul Keating introduced sweeping economic changes that are still regarded as having transformed modern Australia, but the competitiveness and mistrust between the pair grew over the years.
The pairing of Liberal prime minister John Howard and Treasurer Peter Costello who then followed, also oversaw a massive policy agenda for over a decade, while leadership tensions bubbled underneath them.
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Now, more than a year into the Albanese government’s second term, Labor MPs are increasingly discussing the tense dynamics between their Prime Minister and his younger, ambitious Treasurer Jim Chalmers.
For months party insiders have observed a frostiness between the pair and discussed how Dr Chalmers is regularly stymied by his leader, pointing to this week’s partial back down on capital gains tax measures unveiled in last month’s Budget.
They claim Thursday’s joint press conference between the pair to announce what the PM described as “necessary” changes, only served to highlight the strains.
“It reminded me how Jim was going to announce the Productivity Summit last year, but then Albo called a snap National Press Club address shortly after winning the election to announce it himself”, one Labor figure tells The Nightly.
During a visit to the New South Wales town of Woy Woy on Friday, the Treasurer was asked about recent commentary on his “frosty” relationship with the Prime Minister.
“Oh, it’s just rubbish, you know, and you shouldn’t believe that sort of trash that you read in some parts of the media,” Dr Chalmers responded.
“I’ve talked to the Prime Minister almost every day since the Budget. We work together very, very closely. On a personal level I’m very grateful to him for the work that we are doing together to bed down these really important changes.”
“The Prime Minister and I have decided, and the government has decided collectively, to make these difficult changes, even though they are contested, even though they are contentious, even though they invite the usual scare campaigns and partisan campaigns in some of our newspapers.”
Since handing down the Budget, which included broken election promises on negative gearing and CGT, a concerted “Fire the Liar” campaign against Anthony Albanese has significantly hit his personal standing.
When in Opposition, Mr Albanese and his Labor team deployed the “liar” attack on then prime minister Scott Morrison to devastating effect, but now the PM is experiencing just how potent the line of attack is.
It’s prompting growing speculation both inside and outside Labor, on how long the PM and his Treasurer can remain together.
“They both can’t be in their jobs at the next election. Every single question will be ‘how can we trust anything you both say?’ One will have to go — and I’m pretty sure it won’t be Albo,” says one veteran Labor figure.
Others in government are not so pessimistic, believing the PM and the Treasurer continue to work productively together, while acknowledging that Chalmers is not inside Albanese’s inner sanctum of closest confidantes.
The need for a comprehensive ministerial reshuffle ahead of the next election that’s due in 2028 is also widely accepted, but the idea of Dr Chalmers being moved out of the prized Treasury portfolio is not being taken seriously, yet.
For the demoralised and depleted Coalition, talk of tensions at the top of Labor is providing some rare joy as they endure troubling times in opposition.
“The Budget has knocked out Jim Chalmers’ longevity as Treasurer, let alone Prime Minister”, shadow treasurer and Liberal leadership aspirant Tim Wilson told The Nightly.
However, questions about who should lead his own party are also likely to intensify when Parliament returns next week, as opinion polls show the Coalition’s position is just as dire as when Sussan Ley was dumped earlier this year.
