Jim Chalmers:
Tonight’s Budget will be a responsible budget. It will help with the cost of living, strengthen Medicare and build Australia’s future. We know that cost of living is front of mind for most Australians, and it will be absolutely front and centre tonight in our Budget. Our economic plan is all about ensuring more Australians are working, earning more and keeping more of what they earn. And that’s the motivation behind the cost of living help that people will see in tonight’s Budget.
The Budget is about strengthening Medicare and the election will be an opportunity to secure it for the future. We’ve made a lot of progress together in our economy, but we know there’s more work to do because people are under pressure and the global economic environment is so uncertain.
But in this context and in this global economic environment, we’ve got inflation down, real wages and incomes are up, unemployment is very low, interest rates have started to come down, we’ve got the debt down and growth is rebounding solidly in our economy as well. So, we have made a lot of progress together and the Budget is about building on that progress together as well.
Our Budget and our economy are both now in much better condition than we found them 3 years ago. We’ve got the Liberal debt down by $177 billion, and that is saving Australians something like $60 billion in debt interest. We’ve helped engineer the biggest ever improvement in the budget in a single term, in dollar terms, a $207 billion improvement in the budget.
We’ve delivered 2 surpluses, we’ve shrunk the deficit for this year, we’ve engineered that $207 billion improvement – that means less debt and less debt interest at the same time. So that we can make room to strengthen Medicare and help with the cost of living and build Australia’s future as well. So, we have made good progress together as Australians. The Budget will reflect that. We do know that there’s more work to do because people are still under pressure and the global outlook is uncertain and it is challenging.
So, the Budget tonight will be a platform for prosperity in a new world of uncertainty. It will recognise that people need and deserve a bit more extra help when it comes to the cost of living. It will make our economy more resilient in the face of all of this global economic uncertainty. And I’m looking forward to telling you all about it tonight and to take some questions now, please.
Journalist:
Treasurer, what more cost‑of‑living relief can we expect in this Budget, especially for working Australians, and is this Budget about the next few weeks or the next few years?
Chalmers:
This is a budget to build Australia’s future. It strikes the right balance between helping people with the cost of living and investing in a more competitive, more productive and dynamic economy into the future so that we’re more resilient to these global shocks which are becoming a regular feature of the world’s economy. Despite all of this global economic uncertainty, the Australian economy is turning a corner.
We see that with lower inflation, higher real wages, low unemployment. We see that with growth rebounding solidly and we’ve been able to get the debt down and interest rates have started to be cut as well. So, we’ve made a lot of progress together. A big part of that progress is being willing in the first 3 budgets and again in the fourth to help people with the cost of living in the most responsible way we can.
Journalist:
Can you just clarify a bit about that? What do you mean about resilience? What measures are there to protect against that global uncertainty, and specifically tariffs that we are expecting Donald Trump to impose?
Chalmers:
Our best defence against global economic uncertainty is a more resilient economy. And that’s what the billions of dollars, for example, that we’re investing in green metals is all about. That’s what the modest amount of money that we’ll be devoting to the Buy Australia promotion is all about, but also making our economy more competitive and dynamic.
It’s unusual in budgets on the eve of an election for it to have proper economic reform. But you’ll see some economic reform in the Budget tonight, which will be all about making our economy more competitive so we can lift living standards and boost wages.
Journalist:
Treasurer, what’s in the Budget for northern New South Wales?
Chalmers:
You’ll see in the Budget that we’re very enthusiastic investors in all of our regions, including in northern New South Wales. We know that they’ve had an especially rough time, as have the good people of southeast Queensland in recent times. We’ve provisioned, for example, another $1.2 billion to rebuild local communities and some of that will flow to the Northern Rivers and northern New South Wales. And that’s because we know it’s a really beautiful, important part of Australia and we’ll invest in it enthusiastically once again.
Journalist:
If people are still under pressure Treasurer as you say, can’t you do a bit better than just $150 off these energy bills?
Chalmers:
You’ll see tonight how the cost‑of‑living package comes together. The energy rebates are an important part of the cost‑of‑living package, but not the only part. The Prime Minister announced the policy for even cheaper medicines on Thursday. The whole motivation of strengthening Medicare is because more bulk billing means less pressure on families.
We have shown a willingness and an enthusiasm to do what we responsibly can to help people with the cost of living. All of those measures reinforce each other. It’s not just energy rebates, it’s also cheaper medicines. But really one of the centrepieces of this Budget is Labor’s efforts to strengthen Medicare. The Budget is about strengthening Medicare and the election is Australians’ opportunity to protect it and safeguard it against Peter Dutton.
The election will be a referendum on Medicare and the Budget takes its responsibilities to strengthening Medicare very seriously. We created Medicare, we believe in it, we’re strengthening it by investing in bulk billing in record ways in tonight’s Budget.
Journalist:
Treasurer the full extent of Donald Trump’s tariffs won’t be known until April 2, to what extent have you been able to tuck measures away just in case. We won’t necessarily see announced today but are there in response if necessary?
Chalmers:
We’re not uniquely impacted by policy developments out of Washington D.C. but we’ve got a lot of skin in the game because we’re a trade exposed economy. And so we will continue to engage with the Americans, we’ll continue to stand up and speak for our interests. Our best defence against this global economic uncertainty is a more resilient, more competitive, more productive economy. And you’ll see that that is a major feature of tonight’s Budget.
Journalist:
Treasurer, it wasn’t anticipated that you would be handing down this budget were it not for a natural disaster we probably would be in a campaign by now. So, is this an election winning budget or an election losing budget?
Chalmers:
First of all, there are a series of assumptions in your question, Chloe, which I’m not necessarily going to come at. I’m really pleased that we get this opportunity, this rare opportunity, but welcome one, to hand down 4 budgets in a single parliamentary term – it hasn’t happened since the 1940s. But from my point of view, it’s a very welcome opportunity to put the economy front and centre on the eve of an election. This is not a budget for the election, it’s a budget to build Australia’s future.
But we want the economy to be front and centre. Our political opponents have spent all of their time trying to dismiss and diminish the progress that Australians have made together in our economy and none of their time coming clean on what their secret cuts will mean for Medicare, for the progress we’ve made together or that they will make people worse off. So, this is their big opportunity this week. We do expect the economy to be central to the election campaign and I think that’s a very good thing.
Journalist:
How does it feel to be returning to deficits tonight, if your last 2 were surpluses?
Chalmers:
When we came to office they were all deficits and we turned 2 of those into Labor surpluses. And because we did that, we have made a meaningful difference to debt. We’ve got $177 billion of Liberal debt down this year, saving Australians tens of billions of dollars in debt interest. So, we’ve delivered 2 surpluses in the first 2 years.
We’ve shrunk the deficit this year and we’re managing the economy and the budget in the most responsible way we can, given all of these pressures on people and coming at us from around the world. So the responsible economic management that we have made a hallmark, a defining feature of this government, would be unrecognisable to our predecessors. When we came to office, they were all deficits. We turned 2 of them into surpluses and we’ve shrunk the deficit this year as well.
Journalist:
On Medicare Treasurer, you said the election would be a referendum on Medicare. Does it not blunt your attack a little bit that the Opposition has already matched the cheaper medicines policy, they’ve matched the bulk billing, the $8.5 billion?
Chalmers:
We remember what Peter Dutton did when he was the Health Minister. He said before the election he was all for Medicare, and then after the election he tried to gut it. He tried to impose a GP tax and undermine universal Medicare in this country, which is one of the most important things we have going for us. The election will be a referendum on Medicare and the Budget will be about strengthening it. Peter Dutton and Angus Taylor have both said in different ways over the course of the last week or 2 that the best predictor of future performance is past performance.
That’s a pretty chilling admission from Dutton and Taylor because last time Dutton was the Health Minister, he went after Medicare and undermined it. He cut tens of billions of dollars out of health and so that’s the risk here. The reason they haven’t come clean on their secret cuts is because Peter Dutton’s secret cuts would interrupt the progress we’re making in the economy and make people worse off. And where that will be most consequential will be Medicare.
Journalist:
Treasurer, will taxes be higher or lower as a result of your budget?
Chalmers:
You’ll see tonight all of the figures when it comes to, for example, tax‑to‑GDP and the like. You see a lot of speculation before budgets. Not all of it is right. For example, one commentator was saying he expects this year tax‑to‑GDP to go up. You’ll see tonight the tax‑to‑GDP goes down in 24–25. You see predictions about gross debt this year not being correct.
And so I encourage you to pore over the numbers in the Budget tonight. What you will see is the impact of the tax cuts that are already flowing in the economy are helping to make sure that more Australians are working, earning more and keeping more of what they earn. That’s really the defining purpose of this government, in addition to strengthening Medicare. We’re managing the Budget in the most responsible way we can in the face of these external shocks. Tonight, you will see a Budget which is all about helping with the cost of living, strengthening Medicare and building Australia’s future.
I’ll see you later on. Thanks very much.