Chalmers Warns of Economic Impact from Iran War

0:00Australia's treasurer, Jim Traumers, just dropped the reality check on the economic hit from Donald Trump's war in Iran. He's warning inflation could climb above 5%, unemployment will rise and grow slows down big time. This all ties into next month's federal budget, on May 12, where the fallout from global supply chains getting wrecked could turn severe. Earlier this week, after chats with global finance folks in Washington, DC, Traumers said the straight-of-war move shutdown is fueling massive uncertainty. He straight-up admitted from an economic view, the end of this war can't come soon enough. But even with the ceasefire, things won't snap back to normal right away. Supply lines stay jammed. Australians are feeling the pinch already, with Treasury models now seeing inflation peaking higher than the mid-to-high fours they first thought. slower growth usually means more folks out of work. And Traumers called the last few days a wild ride for budget planners. The big question is how long the war drags, how quick the straight reopens and when the

1:00world economy chills out. On the fixed side, they're locking in cuts to the national disability insurance scheme as the top savings move. Labor is pushing tax tweaks on property investors like dialing back negative gearing and the 50% capital gains discount to curve that. $52 billion scheme exploding to $63 billion by 2028-29. Plus, billions in cost of living relief, including a $2.55 billion temporary fuel excise cut. Governments teaming up internationally to pry up in the straight, heading to a conference with over 40 countries this week. Meanwhile, Traumers brief state treasures tomorrow on resilience plans for businesses and families, keeping the focus on fairness across generations, as they roll out productivity boosts and reforms. Sydney News today, powered by AI bringing you what matters, I'm Corey with The Story.