DANICA DE GIORGIO:
The Treasurer has released new analysis showing wages growth at its fastest annual pace in 15 years. Earlier, I spoke to Treasurer Jim Chalmers and began by asking what the Albanese government is doing to lift wages.
JIM CHALMERS:
Good afternoon Danica. Thanks for having me back on your show, and happy New Year. What these new figures from the Treasury show today is that our efforts on the minimum wage, or when it comes to wages in the care economy, are bearing fruit. We're seeing that overall wages are growing again in our economy, that's a good thing after a decade of deliberate wage stagnation under our predecessors. But what's perhaps most encouraging about this new Treasury analysis is that there is more growth in the lower income parts of the income ladder. So, overall wages were growing about 4 per cent in this period, but substantially higher than that for the first two rungs of the income ladder – that's a good thing. There's probably no better way to make it easier for people to deal with these substantial cost‑of‑living pressures than to get wages growing again. That's what we're doing, and we're very pleased with that.
DE GIORGIO:
All right, well, what will be included then in your upcoming Budget? What's on the table to actually help Australians? Can you give us an example? Will you cut the fuel excise? Will you extend the energy bill relief? What's the plan? Because Australians need a plan themselves.
CHALMERS:
Well, first of all, our plan has three parts. The first part is providing this cost‑of‑living relief in ways that take some of the edge off inflation rather than add to it. Secondly, to invest in strengthening our economy, whether it's housing or energy or skills or in other ways. And thirdly, getting the Budget in much better nick. These are the three best ways that we can put downward pressure on inflation. We'll get a new inflation figure later in the week. But what's already clear overall, and it's not a straight line, inflation doesn't moderate in a straight line, and these monthly figures are notoriously volatile. But what we've seen already over the course of the last year or so is inflation is coming off a bit, not as much as we would like, we'd like it to moderate further and faster. But when it comes to the Budget, we're still rolling out billions of dollars in cost‑of‑living relief that I budgeted for in the Budget in May. We know from the Australian Bureau of Statistics that that is helping to take some of the edge off these cost‑of‑living pressures. And the Prime Minister and I have both made clear in recent days that if there is more that we can responsibly and affordably do in the May Budget, of course, we'll consider that as well.
DE GIORGIO:
Okay. Can you confirm, though, that there will be additional measures to address the cost‑of‑living crisis in the May Budget?
CHALMERS:
Well, obviously, we'll consider that between now and the Budget. I'm not going to announce budget measures for May in the beginning of the second week of January. What we've shown is a willingness to provide cost‑of‑living help where we do that in responsible, in an affordable and in a meaningful way.
DE GIORGIO:
So no guarantees, Treasurer? No guarantees.
CHALMERS:
We've made it really clear, we're rolling out cost‑of‑living help now. We're looking at whether we can provide more cost‑of‑living relief in the Budget. It would be really unusual, Danica, with respect to announce the budget measures in the second week of January. We have said that we are prepared to consider more cost‑of‑living relief if we can do that in a responsible and affordable way. What we've shown with our electricity bill relief, our childcare relief, our increase in rent assistance and in a whole bunch of other ways, that there are ways that we are taking some of the edge off these cost‑of‑living pressures without adding to inflation. Inflation would be much higher without the measures that we're rolling out right now. That's why its beggar’s belief, frankly, the Opposition voted against a lot of the help that is rolling out right now.
DE GIORGIO:
All right, let's move on now. Australia describes itself as one of the biggest non‑NATO contributors to the war effort in Ukraine. How sustainable is this given other Federal Budget pressures?
CHALMERS:
Well, we do what we can for our Ukrainian friends. We are big supporters of the people of Ukraine. They have shown such courage and resilience and determination and grit in the face of this inexcusable Russian aggression. And the conflict in Ukraine has been dug in now for some time. It has big consequences for the global economy, but particularly consequences for these Ukrainian communities, which are more or less under siege and so we help where we can. We provide the kind of assistance that we can afford to, but cognisant of and consistent with all of our other budget priorities. Our highest priority in the Budget has been rolling out this cost‑of‑living relief and strengthening Medicare and building a future made in Australia. And consistent with that and within that, within those budget constraints, we do what we can for the Ukrainians.
DE GIORGIO:
Tanya Plibersek has blocked Victoria's planned renewable energy terminal because it would damage surrounding wetlands. Won't this make it harder to achieve our 2030 targets?
CHALMERS:
Look, from time to time, Environment Ministers in governments of either political persuasion are called upon to make decisions based on the facts and consistent with the environmental law and that's what's happened here. We're big supporters of renewable energy, as you know, and a big part of that will be offshore wind. But it needs to be consistent with our obligations to communities and to the environment as well. Whether it's Tanya Plibersek or Environment Ministers before her, they weigh up the facts, they weigh up the relevant laws and regulations, and they come to the best decision that they can. This doesn't mean we're not committed to renewable energy and to offshore wind. We just want to make sure that we can do that consistent with all of our other obligations, including our responsibilities to the environment.
DE GIORGIO:
And just before we let you go Treasurer, to the ongoing flooding situation, particularly in Queensland and far northern New South Wales, will your government stand by the affected residents?
CHALMERS:
Of course we will. We're already rolling out emergency payments to people in affected communities, and we will be there to help fund the rebuild of these communities as well. Australians are there for each other in difficult times like these, and the Albanese government and the state governments will be there for people as well, we give people that assurance. It is heartening, we are very grateful of the way that people band together at times like these, and we'll be there for people too.