Question Time erupted into chaos on Wednesday after a fiery exchange erupted between senior Liberal Alex Hawke and Treasurer Jim Chalmers, forcing the Speaker to intervene. 

Hawke bellowed at Chalmers on the House floor, accusing him of being ‘hopeless, and a liar’ – a word that is rarely hurled around the parliamentary chamber despite the typical ferocity of Question Time. 

‘No, you are hopeless and a liar,’ Hawke yelled. ‘Lying to the Australian people. If lying is in order… This is a liar.’ 

Hawke’s outburst came after Chalmers accused the Opposition of spreading falsehoods about Labor’s economic record, saying: ‘From time to time, reluctantly, it is on us to point out the egregious lies being told by those opposite about our economy.’ 

The row began when Opposition treasury spokesman Ted O’Brien pressed the government on the Reserve Bank’s decision to keep interest rates on hold. Mr O’Brien argued that the Albanese government’s spending had influenced the Reserve Bank’s decision.

‘Given the Reserve Bank’s decision to keep rates on hold, millions of Australian mortgage holders will start wondering if interest rates are as low as they will ever go under this government… will the Prime Minister take responsibility?’ O’Brien asked.

Chalmers fired back, opening with a jab at internal Liberal Party tensions.

‘I’m pleased that the member for Fairfax has taken a brief break from undermining his own leader,’ Chalmers said.

‘If they were honest, Mr Speaker, they would say that the Reserve Bank Governor drew no link whatsoever between the government budget position and the decision that they took yesterday.’

The comments sparked uproar among Opposition MPs. 

Hawke, the manager of opposition business and a key figure in the Liberals’ centre-right faction, rose to his feet and shouted across the chamber. 

‘No, you are hopeless and a liar. Lying to the Australian people. If lying is in order… This is a liar. That is what we are debating here and I am happy to debate it.’

Speaker Milton Dick repeatedly called for order, urging MPs to ‘take a breath’ as he tried to restore calm.

‘I don’t want anyone called a liar or accused of lying. The practice is crystal clear,’ Dick said.

‘The Treasurer did not accuse an individual, he called a party. But I’m going to get you both to withdraw because what you did was completely unacceptable.’

Both Hawke and Chalmers eventually withdrew their remarks, but not before the Speaker issued a stern warning.

‘Please don’t use that word. It is fraught with danger.’ Dick said. 

Despite benefiting from the internal Coalition chaos, the Albanese Government may be facing renewed economic headwinds.

The RBA has warned that higher inflation could be here to stay for at least 6 to 12 months.