Treasurer Jim Chalmers has cautioned left-wing activists against campaigning against the One Nation party from a stance of “smug moral superiority,” emphasizing the need for the Australian Labor Party (ALP) to engage with voters experiencing anxiety about social and economic change. Speaking at an event hosted by the Australia Institute in Canberra on Tuesday, Chalmers outlined his approach to addressing voter concerns amid a perceived drift towards the far right.

Drawing from his personal experience growing up in the working-class suburb of Logan, Chalmers underscored the importance of respecting the feelings of those who feel they have “lost control,” acknowledging that emotional responses to economic and social issues are “as real as facts.” He urged progressives to avoid dismissing or alienating these Australians, suggesting that engagement grounded in empathy and understanding is essential to countering One Nation’s appeal.

Chalmers described the far-right strategy as one that seeks to “divide people” by capitalizing on economic pessimism and uncertainty. He attributed the rising support for One Nation partly to a nostalgic appeal, with the party promoting a “more nostalgic version of the world we remember” that some voters find familiar and reassuring amid change. The Treasurer warned that the party’s negativity about the economy could become a self-fulfilling prophecy, undermining consumer confidence and overall economic sentiment.

In his Bernie Fraser Oration, delivered on the same day, Chalmers predicted that One Nation’s voter support would remain elevated for a prolonged period and expressed skepticism about a swift rebound in consumer confidence. He highlighted external factors influencing Australia’s economic outlook, noting that decisions made internationally—in Washington, on Wall Street, and in Tehran—would heavily impact the coming year. He nevertheless pointed to expectations from the Reserve Bank and Treasury that inflation would return to the target range and that interest rates might begin to ease within twelve months.

Chalmers proposed a progressive approach centered on offering “a lift-up, a hand up” rather than a “smash-and-grab job against their neighbours.” He called on the ALP to base its response to far-right rhetoric on genuine respect and understanding, rather than condemnation or elitism.

The Treasurer’s remarks came minutes before Prime Minister Anthony Albanese confirmed he had directly intervened to extend the deadline for businesses to use credit cards to pay tax bills. Albanese said the decision followed urgent discussions with Australian Chamber of Commerce and Industry chief executive Andrew McKellar, demonstrating the government’s responsiveness to business concerns.

Together, the statements from Albanese and Chalmers reveal Labor’s dual focus on managing economic challenges and addressing the political risks posed by far-right movements, aiming to navigate both with a message of inclusion and practical governance.