Chalmers heading to China as budget faces $4.5b hit
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The news: Jim Chalmers will visit China in the last week of September in the first trip by an Australian treasurer in seven years.
The visit, scheduled around 27 September, will focus on economic talks, as an economic slowdown in China and falling demand for key commodities threaten a $4.5 billion hole in Australia’s federal budget.
The talks will also likely include discussions about remaining trade restrictions on Australian lobster as well as foreign investment rules in Australia around areas like critical minerals, which are currently being reformed, Chalmers told the ABC Insiders program.
“I want to strengthen it in areas like critical minerals, critical infrastructure, critical data, and I want to streamline it for areas where there are fewer concerns,” Chalmers said.
The context: Three weeks ago, Chalmers warned of a $3 billion hit to the federal budget due to a sharp drop in demand for steel in China, driven by its struggling property sector.
On Sunday, he said continued price declines in key commodities like iron ore and metallurgical coal had led Treasury to model a scenario where the budget could take a $4.5 billion hit.
What they said: “This is a real sign of weakness in the global economy, and we’re not immune from it, our economy is not immune from it, and nor is our budget,” Chalmers said
He also confirmed the 2026 census would, for the first time, include a new topic covering questions of “orientation and gender identity,” following pressure from LGBTIQ+ advocates.
“LGBTIQ+ Australians matter. They have been heard and they will count in the 2026 census. We have listened to the community,” Chalmers said.
The source: ABC Insiders
