Kieran Gilbert:
Let’s return now to federal politics. Particularly, we’ve had the breaking news today, this release of an interim report by the Royal Commission on Antisemitism and Social Cohesion. The Labor frontbencher, Assistant Treasurer Daniel Mulino, joins me. Thanks for your time.
I want to get to the economic issues, your area of responsibility, in a moment. First, just your initial thoughts on this: 14 recommendations from the Royal Commissioner, the government’s adopting them in full. Five of them are classified. Do you think the community – the Jewish community specifically – will understand the need to keep some of this sensitive information classified, Minister?
Daniel Mulino:
Well, look, thanks for having me on. Look, I don’t think it’s surprising, given the very sensitive nature of some of the issues that are being dealt with, that some of the recommendations are classified. But what I would say is, I imagine that the Jewish community here in Australia, but also that the broader community, would be very pleased that an interim report has come out in such a timely fashion.
I think it’s also very positive that the government has so quickly been able to accept all of the recommendations that relate to the federal government. And clearly, we will also work constructively with state governments and other stakeholders in relation to recommendations that affect them. So, look, I think this is a really important step forward, and I think very quickly the government has taken positive and proactive action in relation to it.
Gilbert:
Indeed. Let’s turn – and obviously, we’ll have thorough coverage of that; my colleague Sharri Markson coming on with me shortly to explore the full detail of the Royal Commission. It’s just been handed down. I know you don’t have carriage of it. We’ve heard from the Attorney‑General and the PM, so we’ll have more on that a bit later. I want to ask you about the inflation number this week. Is it temporary, that issue, or is it structural? Because we saw the inflation signs before this monthly number.
Mulino:
Well, Kieran, look, I think the numbers that came out earlier this week are very much what people would have expected. Like every economy around the world, we are being impacted by the war that is occurring in Iran. I think the numbers that came through, again, reflected that, as you would expect. The parts of the economy that are most impacted by fuel were the areas where we saw the most inflationary impact.
But what I would also say is that we haven’t yet seen the impacts, through inflation and through price levels throughout the economy, of the government having cut fuel excise by 50 per cent. That will have a material positive effect. And what I’d also say is that the government has a range of other measures to support people with broader cost of living, which I think are even more vindicated and meaningful now, given that we have this war having impacts throughout the economy.
Gilbert:
On that issue, though, how do you balance that cost‑of‑living pressure – you know, trying to ease that – with easing the pressure on the budget bottom line and on inflation? Because obviously you don’t want to be putting a fire under public demand, do you?
Mulino:
No, and that’s right. I think that word, balance, is key. I think what you need to do is to make sure that you do provide those who are most vulnerable and those who are most impacted support, but you need to do it in a fiscally responsible way. And when the government was responding to the post‑COVID inflation surge, where supply chains around the world were impacted, it undertook something of that nature. It provided people with supports in all sorts of ways in the first couple of budgets that we put into place – budgets which, I might add, had surpluses which put downward pressure on inflation. But we also provided assistance through targeted measures such as rent relief, through better targeted tax benefits and so forth.
So, similarly now, we will need to implement supports for vulnerable people, but do so in a way which is fiscally responsible. So, we’re obviously about to hand down a Budget in less than 2 weeks. And we’ve seen that already through announcements, there are going to be some saves in that Budget. Minister Butler has announced some pretty significant reforms and saves in the area of the NDIS. So, we will be managing the budget in a fiscally responsible way, as we have for our first 3 budgets, but we will also be providing assistance to people where that’s needed.
Gilbert:
So, will – the question is, will the Budget ease the pressure on inflation or worsen it? What will it do?
Mulino:
Well, so we have the fuel excise cut for 3 months, which is really important, and that’s already being seen by people in their daily bills. We’ve got a tax cut coming through for all households, which is really important. And look, we will also be putting into the Budget a number of saves across a range of areas. NDIS is a particularly important one, which we’ve already discussed. So, yeah, there will be –
Gilbert:
Well, does that drive the percentage of spending? The percentage of spending in the context of GDP, a percentage of GDP, it’s been down now around the 26 per cent mark. Will you get it below that?
Mulino:
Well, I’m not in a position to talk about the macro numbers in the Budget or the forecasts or anything of that nature. That will come out on Budget night. But look, what I can point to is the fact that we’ve achieved over $100 billion in saves in the first few budgets of this term. We will achieve more saves in this Budget, and we’ve already announced some significant ones.
So, when it comes to saves, this government has been very fiscally responsible. And that can be contrasted with the other side, when in their final budget, they achieved $0 in saves. But that was manifested, in our case, in 2 budget surpluses in our first 2 budgets. So, look, there will be more fiscal responsibility, more saves. I’ll let the Budget itself announce, or I’ll let the Treasurer, when he releases the Budget, announce all of the macro numbers, but it will be responsible.
Gilbert:
Daniel Mulino, Assistant Treasurer, thank you, as always. Talk to you soon.