Jim Chalmers (Treasurer of Australia) has warned that inflation and unemployment are expected to rise due to the ongoing conflict in Iran, particularly as the closure of the Strait of Hormuz disrupts global supply chains. He highlighted that inflation could exceed 5%, with Treasury modeling suggesting that previous estimates may have been too conservative. Chalmers stated that the economic consequences of the war are already serious and may worsen over time. As part of the upcoming federal budget, he confirmed that cuts to the National Disability Insurance Scheme (NDIS) will be a significant component of the savings package. Additionally, the government is exploring reforms to the capital gains tax system, potentially reverting to pre-1999 policies. To support citizens during this economic turmoil, billions in cost-of-living assistance, including a temporary cut to the fuel excise, are expected to be introduced.