Portfolio — 23 March 2026

The Treasurer, Dr Chalmers, used Question Time on 23 March to frame the Middle East conflict as the dominant near-term threat to the Australian economy, while insisting Australia's relative position — on growth, unemployment, and public debt — remains stronger than major advanced economies [TA-260323-house-068fade26cde:s228]. Treasury modelling released the previous week underpins that framing, forecasting a drag on growth and fresh price pressure that compounds existing cost-of-living strains rather than displacing them.

Dr Chalmers outlined a multi-track government response. On fuel supply, the government is releasing hundreds of millions of litres from strategic reserves, temporarily amending fuel quality standards, and coordinating with international partners. On market conduct, the ACCC has been armed with tougher penalties to pursue suppliers and retailers engaged in price gouging — a measure that intersects with the government's broader consumer competition agenda.

The Treasurer also convened a Council of Financial Regulators meeting to monitor market functioning and ensure all systemic risks are being assessed in real time.

On resource taxation, Dr Chalmers held the line against further imposts, citing the government's existing Petroleum Resource Rent Tax reforms as already delivering measurable results: the number of entities paying the PRRT has risen from 11 to 16, and combined company tax and PRRT payments by the oil and gas sector now exceed pre-COVID averages [TA-260323-house-068fade26cde:s237] [TA-260323-house-068fade26cde:s233].

That position signals the government does not intend to use the energy price shock as a trigger for additional resource levies.

Looking past the immediate crisis, Dr Chalmers reaffirmed the staged tax cut schedule — commencing July 2026 and extending to July 2027 — and flagged that productivity investment and medical research will feature in pre-Budget deliberations ahead of the May Budget. That forward signal, delivered in the same exchange as the conflict-response measures, suggests the government is attempting to hold its structural Budget agenda intact despite the external shock.