Australia news live: Jim Chalmers promises more tax reform in budget as war threatens to send inflation past 5%

Treasurer plans ‘ambitious’ changes to target intergenerational inequity. Follow today’s news live

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The treasurer’s fifth budget comes amid a global energy shock that Treasury officials say, if persistent, could drive inflation above 5% and slash $16.5bn from the economy by 2027.

As petrol prices soar, the Reserve Bank is on track to deliver a third interest rate hike at its next meeting in early May, economists predict, in a move that would ratchet up the pressure on the Albanese government to deliver an inflation-busting budget amid a global energy shock.

We’re working on substantial savings options for this budget.

This will build on the savings we’ve made to date, addressing some of the fastest growing structural spending pressures and making difficult decisions in other areas.

We are working on more tax reform in the budget – how much we can do in May depends on fiscal considerations, international developments and cabinet deliberations.

We recognise an outdated tax system is weighing on the opportunities faced by younger Australians and future generations.