BRIDGET BRENNAN:
The latest labour force results will be released this morning, with the unemployment rate widely expected to climb. Treasurer Jim Chalmers joins us now from Brisbane. And we’ll get to that in a moment but first, Treasurer, if you wouldn’t mind, let’s talk about childcare. Why are so many Australian families struggling to access childcare?
JIM CHALMERS:
Good morning, Bridget. I agree with you early childhood education is one of those things, it’s very concerning for families even despite the best efforts of the government. We’ve invested billions of dollars in making it more affordable, we’ve invested billions of dollars in paying early childhood educators the pay that they need and deserve but we know that we need to make it more accessible as well. That’s what this Productivity Commission report is all about, how do we get closer to a universal system, where more people can access it?
We see early childhood education as a game‑changer for families and for the economy. We’ve put a lot of money and a lot of effort into making it better. But this PC report will help us consider what, if any, next steps we might be able to take.
BRENNAN:
There’s so much in this report. A lot of it seems pretty sensible. Among the recommendations, raising the maximum rate of the Child Care Subsidy pretty soon for families earning less than $80,000. That seems like a no‑brainer. Is that something you can do immediately?
CHALMERS:
First of all, we’ve taken some really big steps, invested some big dollars in making childcare more affordable. We know that it’s still a big part of the family budget but because of our efforts we’ve taken some of the edge off these prices – that’s a really important thing.
The Productivity Commission report recommends some next steps that we might be able to consider. Obviously, we’ve got to weigh up and factor in the budget constraints that we have and a whole bunch of other considerations. But what we’ve shown as a government, this Albanese Labor government, is that we are prepared to invest in early childhood education. We’re a big believer, a big supporter, we do see it as a game‑changer for families and the economy. So we’ll do what we can, we’ll work through the issues raised in the Productivity Commission report in our usual methodical and considered way.
BRENNAN:
Treasurer, can we get a timeline on when Australians might learn whether or not you’re going to accept these recommendations? Because it is a blueprint for change and, presumably, if you increase access for childcare for Australian families, more people could get into the workforce, right?
CHALMERS:
First of all, yes we want to make it easier for people to work more if they’d like to. That’s the motivation behind the big changes that we’ve already made to affordability and when it comes to pay for educators. We do want to make it easier for parents, especially mums, to work more if they choose to, and to earn more and keep more of what they earn – that’s our motivation. That’s where the Productivity Commission report is coming from as well. I don’t have a timeframe for you today. We’re already rolling out a number of changes, we’re already rolling out big investments, and we’ll consider these next steps put forward by the PC. That work will be led by Jason Clare and Anne Aly, but the whole Cabinet will be engaged and we’ll work through it in the usual, methodical way.
BRENNAN:
Alright, we’ll move on in a sec, but let me ask you again. Will this be a policy you’ll decide before the election? Will it be an election commitment? How soon might we start to see some decisions around these key recommendations?
CHALMERS:
That’s still to be determined. We’ve shown a willingness, we’ve shown our bona fides when it comes to early childhood education. We’re already rolling out huge investments in pay and in affordability. It’s to be determined whether we’ll have more to say soon or whether it will take us a little longer than that, but when we have more to say, we’ll say it.
BRENNAN:
What are we going to learn about the unemployment rate, Treasurer?
CHALMERS:
Most people understand and expect that the labour market in Australia has been softening a bit, really since the middle of last year or so. That’s one of the inevitable consequences of the interest rate rises in the system plus persistent inflation and the global economic uncertainty that we’re seeing around the world.
We’ve seen the labour market soften a bit in Australia, we’ve seen our economy slow. That’s why it’s so remarkable that under this Albanese Labor government for the first time ever in one parliamentary term we’ve seen the creation of around a million jobs in our economy. When our economy is slowing and our labour market is softening, those million new jobs created in just one parliamentary term is a pretty remarkable feat.
It’s all about making sure that more people can work, earn more, and keep more of what they earn. We’ve made good progress on all 3 of those fronts, despite the slowing economy and the softening labour market and that progress is a good thing.
We’re also seeing that progress made at the same time as inflation has come off really substantially since the year that we were elected, and we’ll learn more about that in the middle of next week as well, when we get the monthly inflation data.
BRENNAN:
Jim Chalmers, your key housing reform has stalled. The Greens say they want you to come back to the negotiating table. Is that what you’re going to do?
CHALMERS:
The Greens are basically behaving like Liberals and Nationals when it comes to housing. We’re trying to build more homes and we’re trying to make it easier for people on low‑ and middle‑incomes to buy one, and the Greens and the Coalition are teaming up to prevent that. I think that says everything about the destructive, divisive politics being played by this alliance between the Greens and the Liberals and Nationals. It’s hard to tell where the Greens end and the Coalition begins, when it comes to housing.
We’re doing our best, we’re trying to get this passed through the parliament so we can build more homes and make it easier to buy one. Our opponents, unfortunately, are lining up to block that and to prevent that progress, and they should explain themselves.
BRENNAN:
If that doesn’t happen, is a double dissolution likely?
CHALMERS:
Our preference is to pass the legislation. We’d rather pass the legislation than go to a double dissolution election but when you’re dealing with Liberals and Nationals and Greens who are this divisive and this destructive, it makes sense to leave all options on the table.
The politics will take care of themselves. Our primary concern here is building more homes and making it easier for people to buy them, particularly when it comes to people on low‑ and middle‑incomes, who need to live near where the jobs and opportunities are being created, especially for workers like emergency workers or the early childhood educators that we were talking about a moment ago.
The parliament should get together to build more homes and make them more affordable for people, that’s what we are trying to do. It’s disappointing but not surprising, given their behaviour, that our political opponents to our left and to our right are teaming up to prevent that progress being made in the parliament.
BRENNAN:
Alright. Well, I think they say they’re open to negotiating but we’ll leave it there. Thanks very much, Treasurer. Have a good day.
CHALMERS:
Thanks so much, Bridget.