Treasurer Denies ‘Gang of Four’ Situation Within the Albanese Government

Reports had emerged that Penny Wong and Katy Gallagher are operating like ‘co-deputy prime ministers’ within the government.

Prime Minister Anthony Albanese (C) speaks as he stands next to (L-R) Jim Chalmers, Penny Wong, Richard Marles, and Katy Gallagher during a press conference at Parliament House in Canberra, Australia on May 23, 2022. David Gray/Getty Images

Australian Treasurer Jim Chalmers has denied Ministers are being sidelined in the government’s decision-making process.

This follows reports in the Sydney Morning Herald that Anthony Albanese is operating a “powerful inner circle” where Foreign Minister Penny Wong and Finance Minister Katy Gallagher are essentially the “co-deputy prime ministers.”

However, Mr. Chalmers dismissed these allegations, stating on ABC Radio National Breakfast, “No, I don’t believe so,” emphasising that Labor’s budgetary process is neither new nor unusual. He highlighted that decisions are made by Ministers rather than public servants.

“I think Anthony runs a very inclusive, very consultative operation, and we run a responsible budget, and that means running a tight ship on spending,” Mr. Chalmers said.

“It means whittling down hundreds of good ideas into a smaller set of priorities that can be funded, and because there’s not a bottomless pit of money, not even all of the good ideas get up, and that’s not always popular.

“But we try to understand where ministers are coming from, we try to understand their goals and their pressures.”

Anonymous sources speaking to Nine newspapers had raised concerns junior ministers were being shut out of the expenditure review committee. They suggested that Ms. Wong and Ms. Gallagher along with Mr. Chalmers and the Prime Minister form a “gang of four” within the Albanese government.

“Katy and Penny are effectively the deputy prime ministers, they are the ‘PM whisperers.’ Katy is a genuinely respected problem solver,” a Labor Minister told the publication.

“Katy wields extraordinary power, and Jim has been very strategic by sticking close to her.”

Deputy Prime Minister Richard Marles and Trade Minister Don Farrell, from Labor’s Right faction, are also reported to be part of the inner circle, alongside Ms. Wong and Ms. Gallagher from Labor left, with Mr. Chalmers belonging to the Right.

‘Collective Decision Making’: Treasurer

However, further pressed about this issue, and whether there is a “gang of four situation,” Treasurer Chalmers said, “No of course not.”

Mr. Chalmers said if the price of being responsible and disciplined with taxpayer money is an “occasional story like this” then he is pretty relaxed about it.

“This is collective decision‑making; ministers are involved, decisions are endorsed by the full Cabinet. People have an opportunity to put their ideas forward, and we try to understand where they’re coming from, and we try to do our absolute best for ministers in the context of some pretty serious budget constraints,” he said.

“And I think Katy in particular, is very good at ensuring we understand where people are coming from and what they’re trying to achieve and what kind of pressures they’re on in their own portfolios.”

The “gang of four” is not a new idea in the Labor Party. Under the Rudd government, a gang of four senior Labor figures made key decisions as part of a “strategic priorities and budget committee” of the cabinet.

This group consisted of former Prime Minister Kevin Rudd, his deputy at the time Julia Gillard, and the former Treasurer Wayne Swan, and Finance Minister Lindsay Tanner.