By Lucinda Garbutt-Young in Canberra

The prime minister is defending the work of his treasurer, downplaying apparent leaks against his colleague from within the government. 

Jim Chalmers’ economic management has been in the spotlight in recent weeks, after surging inflation led the central bank to implement its fifth interest rate increase of 2026.

A series of news stories have suggested fraying within Labor’s caucus over cost of living measures, particularly between the treasurer and Anthony Albanese.

Interest rates spiked to an 18-year high of 4.85 per cent in November, while Dr Chalmers’ May budget measures, which removed some tax incentives for property investors, has been blamed for contributing to a slump in house prices.

That has helped push voters away from the government, with a recent Newspoll showing Labor’s primary vote at just 27 per cent, compared with 28 per cent for a surging One Nation.

Dr Chalmers has repeatedly noted Australia is one of the few economically developed countries that has not experienced a recession, citing that as the reason for high rates.

The prime minister told reporters he was continuing to work closely with the treasurer, whose work he defended.

“My government is the united government. We work together in a decent way,” he said on Tuesday.

Mr Albanese did not respond directly to repeated questions about whether he had issued a warning to his caucus not to undermine Dr Chalmers.

Frontbencher Murray Watt, a supporter of Mr Albanese, was on Monday forced to defend the treasurer’s decisions, saying he hoped leaking within his ordinarily united party would stop.

“It’s pretty obvious that there are all sorts of people making all sorts of comments,” Mr Watt said.

Asked if he would like to “see an end to the undermining and leaking” targeting Dr Chalmers, he said, “Yes, I would”.

Up-and-coming Labor MP Andrew Charlton said his whole party was behind Dr Chalmers and deflected questions about who was leaking information.

“The caucus supports Jim Chalmers because they know he’s doing a good job in a difficult time,” he told Seven’s Sunrise.

“I’m not going to speculate on leaks that people aren’t putting their name to.”

Dr Charlton was appointed in 2025 as cabinet secretary, giving him access to some of the government’s most secretive documents and discussions.

Critics have seen it as a slight on the treasurer, with Dr Charlton, who holds an economics PhD from Oxford University, viewed as a contender for the job.

Asked if he would take the role if it was available, he said he was focused on his own role and was working on artificial intelligence policy.

Assistant treasurer Daniel Mulino on Tuesday claimed Dr Chalmers was “absolutely” safe in his role and was not facing threats from junior colleagues.

“The treasurer is leading a very ambitious program,” he told Nine’s Today Show.

News all day, every day at CityNewsQBN.com.au.