Chalmers is trying to use the current crisis as a springboard for reform

“All this economic uncertainty and volatility is a reason for more reform, not less. It’s a reason to go further, not slower,” Chalmers said.

When he talks about the May 12 budget, Treasurer Jim Chalmers always stresses that what’s done on things like the capital gains tax discount will be a matter for cabinet.

It would be more accurate to say the fate of controversial proposals will depend on where Anthony Albanese is willing to land.

Budget preparation, on which cabinet’s expenditure review committee is working, has been transformed by the ever worsening Middle East war.

The fuel shortages, particularly of diesel, will drag at the economy. The federal government on Thursday appointed a fuel coordinator, and national cabinet was briefed on the crisis. Chalmers has released modelling showing Australia’s inflation rate could hit 5% this year.

This week’s interest rate rise (driven by factors predating the war) combined with higher petrol prices will worsen the mood of disgruntled voters who were already in a cost-of-living squeeze.

As Chalmers said on Thursday, the Middle East conflict will now be “a defining influence” on the budget, given its effect on global growth and inflation and the flow through to Australia.

The uncertainty is making it much harder than usual to predict the budget’s moving parts. But Chalmers is trying to do a lot more than just produce a budget to manage extremely difficult times. He is attempting to use this budget to make his mark as an agent of change.

It’s the first budget of the term, and Labor has a massive majority; there should be never a better time for the government (read Albanese) to embrace boldness – unless the PM becomes spooked by the war crisis.

In a speech this week setting the scene for the budget, Chalmers talked a big game – and,........

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