NEIL MITCHELL:
On the line is the Assistant Treasurer David Bradbury, good morning.
DAVID BRADBURY:
Good morning Neil how are you?
MITCHELL:
I'm well thank you. You're such a strong supporter of the Prime Minister, in the challenge you offered to get a tattoo with her name tattooed on your body. Have you got it yet?
BRADBURY:
No, no I haven't. I put the qualification on that it was the subject of my wife's approval and she wasn't too keen on that but my commitment and support to the Prime Minister is as strong today as it was when I made those statements.
MITCHELL:
So do you think she is going to last if this Budget doesn't resonate?
BRADBURY:
Look I think our focus is on this Budget because it is important for the country, it'll be important for the Government as all Budgets are. I think what we're seeing around the world at the moment is that these are challenging times for governments of all political persuasions This is a Government that is focussed on getting the job done.
MITCHELL:
But do you agree with my interpretation? In fact the interpretation of most of the media that if the Budget doesn't work, the Prime Minister is finished.
BRADBURY:
I'll let you interpret these matters, Neil, as I'll let other members of the commentariat do that...
MITCHELL:
But you must have considered it?
BRADBURY:
We're focussed on handing down a Budget in challenging circumstances but one that will return the Budget to surplus. It is important that we do that for a range of reasons. Apart from providing all of the insurance and protection we need for our economy against any external shocks or challenges from the global economy, it also makes sense at a time when you've got growth returning to trend, contained inflation, unemployment at low levels and a record pipeline of investment. Now these are precisely the times when governments need to be returning their budgets to surplus and that is why we're determined to do it.
MITCHELL:
So do you disagree with my interpretation?
BRADBURY:
I think that in the end the Australian people will judge us on the results that we deliver in handing down this Budget and undertaking many of the other difficult challenges that we face as a Government. People with love us or loathe us but in the end we are getting the job done and that is what we're elected to do. We're getting on with the job, there is a lot of colour and action around what we're doing but in the end we are getting the job done whether it's delivering benefits for small businesses, you'll see many of them in this Budget and delivering assistance for families.
MITCHELL:
I wanted to ask you about that, will there be a company tax cut for small business? That's been promised hasn't it?
BRADBURY:
Well that is something you really should put to Mr Abbott...
MITCHELL:
No, no it's your Budget. You've promised it haven't you?
BRADBURY:
Well we have undertaken to implement a tax cut for companies. As you know the Opposition has very strongly asserted its view. First Opposition, first Liberal Party Opposition in living memory that wants to go into the Parliament and vote against a tax cut.
MITCHELL:
So will there be a tax cut in the Budget?
BRADBURY:
You'll have to wait and see what is contained in the Budget tomorrow...
MITCHELL:
But I don't have to wait and see because you've been officially leaking bits and pieces for days, haven't you?
BRADBURY:
Well, Neil...
MITCHELL:
So it is only the good news that is leaked?
BRADBURY:
We didn't leak anything, yesterday the Treasurer made a formal announcement in relation to loss carry-back which is a very important initiative; it's one that addresses a patchwork economy and the challenges that it presents particularly for those companies that might be running into a little bit of difficulty at the moment...
MITCHELL:
Okay, but the Government hasn't leaked anything you're telling me?
BRADBURY:
I certainly haven't been engaged in any of that...
MITCHELL:
No I wasn't accusing you, look I don't care, that is the way it works.
BRADBURY:
We've got matters out there for discussion, but in the next 24 hours or so all will be revealed.
MITCHELL:
Okay, the education bonus, how will the means testing work? What will it be?
BRADBURY:
Well the school kids bonus in terms of eligibility for that payment, it will largely relate to the same group of people that were eligible for the Education Tax Refund. That means if you are entitled to receiving any Family Tax Benefit Part A, then through that entitlement you're entitled to the benefits of the school kids bonus.
MITCHELL:
And about what's that?
BRADBURY:
It's a bit complicated because it depends on the children and the age of the children. But depending on the number of children, the age of children, household incomes which can be above $100,000 - $120,000 depending on the age and in some cases even higher if you've got older children and a number of them.
MITCHELL:
Okay, previously the similar thing has not even been fully picked up has it? People haven't applied for it.
BRADBURY:
Well that's right. We estimate that around 1 million households that were eligible for payments under the Education Tax Refund were not receiving them or were not receiving their full entitlement. We've made a number of changes over the last couple of years to try and make it easier for people to access the money that we've made available. We extended the scheme to school uniforms, but the reality is there were a number of families and I know a number of families in my community in my electorate office that have found it particularly difficult to track their receipts and be in a position to recoup those costs at the end of the tax year so this will deliver the benefit to them when they need it.
MITCHELL:
It's being seen as a bribe, an election bribe and in fact I saw a quote from a family in the Herald Sun saying that the money is all very *inaudible* but it's not going to change my vote. Do you deny it's a bit of a bribe?
BRADBURY:
Well no it's not about bribing people it is about providing assistance to people. Now I know that this is the line that is being pedalled out there and Mr Hockey on Friday he was out there accusing us of taking to families with a baseball bat, now he's accusing us of giving them a sugar hit. Are we hitting them with baseball bats or sugar? He's got to work out which line he is running but the point here is this is assistance, this is a Labor program. We came in from Opposition saying we wanted to deliver the Education Tax Refund, we're now delivering it in a better way through the school kids bonus that will assist many families particularly in the times when they're getting their kids ready for back to school in January and July.
MITCHELL:
Is it true that since it's been elected the Government has increased spending by $126bn and revenue by $24bn?
BRADBURY:
Sorry, say that again Neil?
MITCHELL:
Is it true, and this is what has been reported today, that since elected the Government has increased spending by $126bn and increased revenue by $24bn? So there is a huge gap there, spending to revenue.
BRADBURY:
Well look I'm not going to go into the details of those particular figures but I will make a few observations...
MITCHELL:
But they're pretty important.
BRADBURY:
Yeah but it is important to understand some of these issues. One is the question around the impact on revenues, the revenue write-downs that this Government has faced and it's not because of anything we've done, it's because of the hit that we've taken as a result of the Global Financial Crisis, worldwide turmoil and the impact on our revenue base. Let me just explain this...
MITCHELL:
No, no I understand it but I think you've forgotten the carbon tax, the impending carbon tax because it has knocked the living daylights out of confidence.
BRADBURY:
No, Neil, include the carbon tax, include the mining tax, this Budget will hand down a Budget where taxation including those taxes as a percentage of the economy will be at lower levels than at any time under the Howard Government. Lower levels of taxation as a proportion of GDP...
MITCHELL:
What will that proportion be?
BRADBURY:
I'm not going to give you the exact figure...
MITCHELL:
Oh come on, you can't float it up and not give me the figure.
BRADBURY:
That'll be released, that'll be *inaudible*, the Treasurer will release that tomorrow. I've got to give you something to hang around for tomorrow Neil.
MITCHELL:
Yeah but you can't play that game. What about superannuation you're going to change that, you're going to bung up the tax on the higher end there aren't you?
BRADBURY:
Well there has been some speculation around that...
MITCHELL:
No, no I think Bill Shorten announced it.
BRADBURY:
And we will be releasing all of these matters in due course...
MITCHELL:
But that was announced by Bill Shorten, he was very grumpy because I asked him and he refused to answer it and in the same day he went out and answered it somewhere else.
BRADBURY:
What I can say is that on super...
MITCHELL:
Alright
BRADBURY:
No, no it's important to understand...
MITCHELL:
It's important to stop spinning.
BRADBURY:
On super, this is a Labor Party baby. We introduced superannuation and this runs deep in our DNA. Mr Abbott on the other hand, in 1994 said it was the biggest con job ever foisted on the Australian people. What it shows is that there is a deep mistrust in the Liberal Party towards superannuation...
MITCHELL:
I tell you what, there is a deep mistrust for anybody with superannuation because you keep fiddling it and it just mucks people around.
BRADBURY:
Yeah but we're increasing it, increasing the super contribution...
MITCHELL:
And you're increasing the tax are you not?
BRADBURY – So that all Australians have an opportunity to retire with a decent standard of living...
MITCHELL:
And you're increasing the tax on superannuation at the higher end, are you not?
BRADBURY:
We will make sure that the concessions, and there are huge concessions in superannuation are appropriately targeted so that we can have a broadly based system encouraging retirement savings across the board.
MITCHELL:
What the hell does that mean? It means that you're going to increase the tax at the higher end.
BRADBURY:
It means there are a range of concessions attached to super, higher income earners to generally benefit much more from these concessions than others but we want to make sure all Australians have the opportunity to retire...
MITCHELL:
So you're going to increase the tax at the higher end, aren't you?
BRADBURY:
Well you'll see all of the details tomorrow night.
MITCHELL:
Alright, thank you very much. Will it be enough to get Julia Gillard over the line, we'll finish where we started?
BRADBURY:
I think we'll keep getting on with the job and Australians will judge us based on this budget but if we get it back to surplus, delivering that at a time where taxation is at a lower level than the previous Government then at a time when all other economies are struggling, I think that bodes pretty well.
MITCHELL:
So is that a no or a yes?
BRADBURY:
That's a yes.
MITCHELL:
Thank you very much. That's David Bradbury the Assistant Treasurer.