Katy Gallagher addresses bombshell claims Jim Chalmers and Anthony Albanese’s relationship is ‘shredded’ after newspaper column everyone in Canberra is talking about

Katy Gallagher has denied rumors of a rift between Anthony Albanese and his right-hand man, Treasurer Jim Chalmers – after a Labor insider claimed their relationship was ‘fractured’.

The Chancellor of the Exchequer told breakfast television on Thursday that the allegations made in a newspaper column by Bill Shorten’s former chief of staff, Cameron Milner, were categorically false.

In a piece that raised eyebrows in Canberra, Milner claimed on Wednesday that the relationship between the prime minister and his chief minister “used to be tense, but apparently they don’t talk anymore”.

‘Albanese’s relationship with his treasurer has been disrupted in every respect after last week.

Mr Milner praised Dr. Chalmers then effusive, calling him “Labour’s intellectual future” and the Prime Minister “must stop holding him back” from pursuing tax reform, on issues such as negative gearing.

He continued: ‘Chalmers is ambitious to be Prime Minister, but also ambitious for Labour.’

But Ms Gallagher said this is ‘absolutely not’ the case in an interview with Karl Stefanovic on the Today show on Thursday morning.

‘I work closely with both boys and I can tell you: they are good friends. They work closely together and it’s great to work with both of them.

‘We are in daily contact and work closely together. I don’t know where that speculation comes from, but it’s certainly not true.’

Stefanovic pointed out that the speculation came directly from Milner, who has had a long and well-documented relationship with former Prime Minister hopeful Shorten.

He asked Ms. Gallagher if she was saying he was not a reliable source.

‘There are many opinions. Some of these are true, some are not, and that is certainly not true. I can leave that alone.’

The accusations came following a recent broken election promise regarding the third phase tax cuts.

Dr Chalmers is widely believed to have been an internal critic of the Albanian government’s original plan to maintain the Morrison government’s phase three tax cut program for many years.

The program would have benefited high income earners until the government set it aside this week in favor of bigger tax cuts for lower and middle income earners.

Dr. Chalmers was in the crowd when Albanese announced the government’s new tax policy at the National Press Club last week.

According to Mr Milnernow director of lobbying firm GXO Strategies, Dr. Chalmers told his colleagues about the decision to break the pledge: “Tails I win, heads he loses.”

2GB Drive host Chris O’Keefe also added weight to allegations that the relationship between the Prime Minister and the Treasurer was tense on Wednesday afternoon.

But the radio host did not suggest that their relationship was so tense that they could not talk to each other.

“I don’t know if they no longer speak, but I can tell you that the relationship between Anthony Albanese and Jim Chalmers, his treasurer, is tense,” he said.

‘That’s not necessarily unusual for prime ministers and treasurers, just think of Keating and Hawke, Costello and Howard, Morrison and Turnbull.

‘But they don’t talk? When they don’t talk at all, the tension is taken to a whole new level. That would surprise me.’

Over the past week, Opposition Leader Peter Dutton has tried to revive Labor leadership speculation in a bid to weaken Mr Albanese.

In an interview with Ray Hadley before the Phase Three changes were confirmed, Dutton said: “If the Prime Minister abandons the tax cuts in Phase Three, his leadership is dead, buried and cremated.

“Let me tell you that I believe this to be the truth.

“I really think Chalmers and (former leadership rival) Bill Shorten and others are rubbing their hands at the moment, thinking that the Prime Minister has finally destroyed credibility with the Australian public and that the Australian public will not support a liar as Prime Minister.”

And on Monday he doubled down on his assessment of Mr Shorten’s ambitions.

Mr Dutton claimed the former Labor leader and prime minister was “biting the bit” hopeful to have another shot at the top job.

“I can tell you that his goal in life is not to become a minister in the Albanian government – ​​let’s be very honest about that,” he said.

Mr Milner was Mr Shorten’s “right-hand man” when he was opposition leader in 2016 and lost the federal election to Malcolm Turnbull.

The chief of staff turned lobbyist quit to spend more time with his family and return to the private sector. He has since criticized Mr Albanese in his top job.

There is no suggestion that the arguments Mr Milner made in his column are linked to Mr Shorten, and the pair have not worked together for some time.

Mr Milner was previously Secretary of State for the Queensland Labor Party.

He is largely credited with helping deliver two landslide victories for state Labor under Peter Beattie in 2001 and 2004.

‘He’s very good, he’s strategically very smart. He works hard and is good at policy. He has all the attributes and will be a great asset to Bill Shorten,” Beattie said at the time.

At the time, Mr Shorten said Mr Milner was absolutely “committed to delivering a Shorten Labor government”.

Daily Mail Australia contacted Dr. Chalmers, Mr Albanese, Mr Shorten and Mr Milner for comments.