“I know that people would like us to go further than that, but from the government’s point of view and for the foreseeable future there are good reasons to prioritise these two way supply arrangements in the region on fuel. Getting the gas reservation scheme in place, which is about energy security, industrial capacity and price. Those are more important things to do for the foreseeable future.”

“And I genuinely believe that if you come to a different view on a key issue that the onus is on you to explain why.”

They also include making it quicker to recognise the skills of migrant tradespeople, and reforming the permanent migration points test for skilled visas to select better educated, higher-skilled and younger migrants.

One change the budget won’t make is to impose a new tax on gas exports.

Chalmers said he understood there were “really strong views” in favour of this and he understood the arguments.

“The commitments we took to the people in 2025 [on housing] were focused largely on supply as well as 5% deposits [to help first home buyers].

This is Chalmers’ fifth budget. Costello delivered a dozen, as he waited, in vain, for Howard to retire. With Labor set to win perhaps another couple of terms, is Chalmers prepared to contemplate Costello’s milestone?

Chalmers casts this budget as “the balance point” between a year of delivering previous commitments and the coming year “of ambitious reform”.

“It was one of the reasons why I reformed the PRRT [Petroleum Resource Rent Tax] in the first term.

“I find it hard to imagine that anyone would do a dozen.”

Anthony Albanese pledged at the election not to touch negative gearing or capital gains tax – the budget is set to alter both.

As well as tax changes, the budget will contain a package aimed at improving productivity. These include measures to reduce red tape, remove barriers to trade, make it easier to engage with government, accelerate approvals and simplify building regulations.

Even before it is delivered on Tuesday, the budget’s looming broken promises are bringing a political backlash.

This week the government announced that under its gas reservation scheme, producers of liquefied natural gas on the east coast will be required from July 2027 to put aside 20% of their gas exports for the Australian market.

Chalmers said there were good reasons in the election campaign to focus on supply. “I think there has been a welcome focus now on some of the intergenerational issues in our housing market and in our tax system.

Treasurer Jim Chalmers is not unaware of the political reaction but argues “what matters most at the end of the day is taking the right decisions for the right reasons”.

“Without coming at the specifics of these policy issues that have been speculated about, if we come to a different view we’ll front up and explain why,” Chalmers tells The Conversation in a pre-budget interview.

“On the specific question around these intergenerational concerns, we do not intend for one second to blame one part of the Australian community for the difficulties being faced by another part of the Australian community.

His point about “coming to a different view” will be contested. It is more credible that Chalmers and others in Labor wanted to change these taxes all along. But the experiences of former leader Bill Shorten had shown the risks of proposing such changes before an election, and how far Albanese would go was always a question mark.

“We want more people to be able to access the housing market […] we see that as an important way to get more people having a toehold in the economy more broadly.”

When it is put to Chalmers that he doesn’t seem to be ruling out forever going further on gas tax, he said it was one of the issues in the public debate but “it’s not something that I’m anticipating”.

Chalmers is anxious to reject the claim that by stressing intergenerational equity the government is indulging in intergenerational warfare.

“We’ve been working very hard to deliver on those commitments and like any government [we] are always looking for where we can make a meaningful difference.

“That’s amazing because I know how much these budgets take out of people.”

“And I think these sets of issues, these really quite defining anxieties about how hard it is to get a toehold in the housing market – I think there has developed a sense of urgency to deal with them.”

“This budget is about making a difference and making difficult decisions, not just marking time.

“We don’t blame older people for making the most of the tax arrangements, including those put in place by [prime minister John] Howard and [treasurer Peter] Costello a quarter of a century ago.

“We have no intention of setting one group of Australians against another group of Australians.

The post View from The Hill: Jim Chalmers on justifying broken promises appeared first on MASSIVE News.

Diesel is a crucial fuel for a wide range of industries. One of the most important uses of diesel is simply moving people (and small loads) around.

Even if it’s resolved soon, this crisis will have forced Australia to finally confront tough questions about its energy security.

At the time of this article’s publication, there were no visible fuel shipments scheduled beyond April 14. But that isn’t necessarily any reason to panic. Typically, departure data is only made available within a couple of weeks before a ship departs (sometimes only a few days before).

My own analysis, using the latest shipping data from financial data firm LSEG, indicates fuel is still headed for and arriving in Australia.

Keeping things moving

Many of diesel’s key uses – powering freight and long-distance trains, trucks or even large shipping vessels – require a huge amount of energy. In very simple terms, diesel contains more energy per litre than petrol. It’s also more fuel-efficient than petrol. That fuel efficiency has enticed many Australians to buy diesel vehicles.

If we zoom out to the bigger picture, Australia’s reliance on diesel is the result of years of particular choices.

Read more:
Why do we use gasoline for small vehicles and diesel fuel for big vehicles?

But our reliance on diesel isn’t inevitable, and other systems are possible. For one, Australia is one of the world’s largest producers and exporters of liquefied natural gas (LNG). Why isn’t our economy based around this prime asset?

After that, trucks and mining sit close behind, each accounting for 24% of consumption. Other significant use activities include agriculture (8%) and manufacturing (7%).

Why is it hard to switch?

There are a few key reasons why switching away from diesel is so hard. One is that diesel is the preferred fuel for large vehicles and heavy industry.

However, there’s one fuel where Australia is particularly exposed: diesel. Our whole economy depends on it. Trucks that move our food and goods around, machinery used in farming and mining, and even backup generators all rely on diesel.

And because most of it is imported and takes weeks to arrive, even a small disruption could cause serious problems. Recent price spikes are a sign of how sensitive the system is. Hundreds of service stations around Australia have reportedly run out of fuel due to soaring demand.

And it’s important not to forget the importance of diesel in various other essential functions for communities. Many remote areas, for example, rely on diesel power as a backup power source.

If diesel stops flowing to Australia (or is severely restricted), one of the most immediate impacts will be on freight.

How bad could things get?

Federal Energy Minister Chris Bowen said on Sunday six fuel tankers scheduled to arrive in Australia had been cancelled or deferred, but that this was out of 81 expected in total.

If the situation doesn’t improve before mid-April, the country could face hard choices – such as rationing fuel, requiring people to work remotely if possible and minimise travel, or switching to alternatives such as electric vehicles.

It’s highly unlikely there will be no diesel at all. But if we can’t get enough stock into the country, what is available could become extremely expensive.

Similarly, when power goes out at a hospital, diesel generators are an important source of backup electricity, where continuity of power is crucial.

What’s on the way

This is where our diesel goes now, why switching off supply would cause major problems – and some of the hard choices we could face as a country if things get worse.

Over the past 15 years, there’s been a surge in diesel sales, with more small trucks and vans on the road required to keep up with Australia’s booming demand for online deliveries.

Our transport and industry infrastructure in Australia is built around access to diesel. Transitioning away from this fuel can’t be done easily or in a hurry.

It will be important for the government to remain transparent about exactly how much is expected to come into the country.

Tough choices

The federal government has been at pains to reassure the public Australia’s fuel supply is secure until mid-April. Tankers carrying diesel, petrol and jet fuel are already heading here from places such as India, Malaysia, Singapore and South Korea. In the short term, supplies look steady.

Nations such as India and China have already demonstrated how transport can pivot away from diesel, rolling out both LNG-powered and electric trucks in large numbers.

According to the Australian Industry Group, by activity, 26% of diesel consumption goes to powering cars and utes.

It’s been hard to ignore growing fears of a looming fuel shortage in Australia. Conflict in the Middle East has led to what the International Energy Agency has called the “largest supply disruption in the history of the global oil market”.

Many freight companies will be unable to absorb these costs, and so will likely push them onto their customers in the form of higher prices.

The post Australia has plenty of diesel for now. But running out could upend our economy appeared first on MASSIVE News.

As tensions continue to escalate in West Asia, Prime Minister Narendra Modi addresses the Lok Sabha. According to reports, PM Modi is expected to outline India’s position on the evolving situation, including its diplomatic engagement, concerns over regional stability, and the impact on global energy and trade routes. The address comes amid heightened tensions in West Asia, with disruptions in critical maritime corridors and growing concerns over the safety of Indian nationals and assets in the region. Earlier on Sunday, PM Modi chaired a high-level meeting to review India’s preparedness in key sectors including petroleum, crude oil, natural gas, power, and fertilisers, in light of the evolving situation in West Asia.

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The post PM Modi LIVE: PM Modi Addresses Lok Sabha on West Asia Conflict | India Energy Crisis | US Iran War appeared first on MASSIVE News.