DAVID KOCH:
We're joined by Treasurer Jim Chalmers. Treasurer, Aussie households are still really feeling the pinch. What's your message to people watching right now about the cost of goods going up?
JIM CHALMERS:
Good morning, Kochie. We understand that Australians right around the country are under the pump. We know that the cost of living is the main focus right now around kitchen tables, and it's also the main focus around the Cabinet table because we understand that people are doing it tough. That's why the Budget was all about trying to take some of the edge off these cost‑of‑living pressures without adding to inflation. It's why we are so proud and pleased that we are seeing the welcome beginnings of decent wages growth in our economy as well because a big part of the story here is making sure that people who work hard can provide for their loved ones. We're seeing the beginnings of that wages growth, we've had the strongest jobs growth in the first 12 months of any government on record, and those things are important when it comes to the cost of living.
KOCH:
All right, wages growth, yes, going up, still negative, still way behind the inflation rate at the moment. How do you balance wages growth with making sure it doesn't feed inflation?
CHALMERS:
I think as you and I've spoken about before Kochie I don't see decent wages growth as part of the problem when it comes to inflation. I see it as part of the solution. If you made a list of all of the things that are putting pressure on inflation in our economy, decent wages wouldn't be on that list. We've got inflation because of the global situation that we've talked about before as well as busted supply chains, we've had weather events ‑ a whole bunch of things happening in our economy, pushing up the price of groceries. We're seeing wages growth that's welcome, the beginnings of that, but we also need to help people take some of the edge off their other cost‑of‑living pressures. That's why the Budget had help for rent, help for energy and in other areas.
KOCH:
Everyone is getting their wages growth, but then are saying `why don't I have enough money to pay for groceries?' And a lot of it is because wages rise, but you take a fair bit of that through increased taxes through bracket creep. This government is becoming the highest taxing government of all time, in terms of personal income tax. How can you fix that? How can you cut tax for us?
CHALMERS:
A couple of things about that Kochie, when it comes to the overall tax take over the Budget's forward estimates that I released last Tuesday. Our tax take is less than what John Howard's tax take was as a percentage of the economy ‑ that's just a fact over the forward estimates. But your broader point, one of the reasons why the Budget is recovering is because people are working more and they are earning more, and both of those things are good things. Now, as you know Kochie and your viewers probably understand, there are some tax cuts in the system coming in a little over a year away. They kick in at $45,000 and part of the motivation for those tax cuts is to make sure that we can give back some of that bracket creep.
KOCH:
Also before we let you go Treasurer, are the kids Little Mermaid fans?
CHALMERS:
My daughter Annabel is and very excited about the show this morning. I know you've got a big Little Mermaid theme going on today, Kochie, and that will be very welcome at my house amongst my kids, but particularly my daughter.
KOCH:
We might organise some tickets for you to take the kids and you can win some brownie points with them. Alright Treasurer good to catch up. Thank you.