EMMA REBELLATO:
The Federal Treasurer, Jim Chalmers, joins us now from Brisbane. Treasurer, good morning to you and welcome to News Breakfast.
JIM CHALMERS:
Thanks Emma.
REBELLATO:
Inflation figures were lower than the previous month, have we turned a corner with inflation?
CHALMERS:
Inflation is certainly moderating in our economy and that's very welcome news. But we understand that a lot of Australians are still under the pump. Inflation will be a bit higher than we'd like for a bit longer than we'd like, but it is obviously very, very welcome news that inflation continues to moderate in our economy. If you think about it this way, Emma, we know people are still under the pump, we still expect our economy to slow considerably, but we go into this period of global uncertainty from a position of relative economic strength. We've got inflation moderating, we've got record jobs in our economy, and we've now got a much bigger surplus as well, acting as a buffer against a lot of this global economic uncertainty. So we've got a lot coming at us from around the world but we've got a lot going for us as well. And moderating inflation is obviously good news, but we need to see more of that because people are under pressure.
REBELLATO:
Well, because people are under pressure, you did mention that surplus, that it is going to be bigger than what you predicted, than what you forecast in last month's Budget. Is there more, will there be more cost‑of‑living relief on the way for Australians who are struggling?
CHALMERS:
We're still rolling out really quite substantial cost‑of‑living help, that was announced in the Budget. Some of that will kick in, in fact, the beginning of the new financial year in July. Whether it's cheaper early childhood education or energy bill relief, or in other ways, that we're trying to take some of the edge off these cost‑of‑living pressures without adding to inflation. But I think the really important point here is that the bigger surplus doesn't come at the expense of helping people who are doing it tough. It actually makes it possible to provide that kind of help and invest in the economy by getting the budget in much better nick. We inherited these huge deficits and not enough to show for a trillion dollars in Liberal debt. And we've worked really hard by finding savings and banking upward revisions to revenue, and showing spending restraint so we can get the budget in better nick, and from that better foundation we can then afford to help people doing it tough and invest in the future as well.
REBELLATO:
But can you afford more now, given the surplus is bigger?
CHALMERS:
Well, I guess the point I'm making, Emma, is we're already rolling out cost‑of‑living help ‑ a fair chunk of that is rolling out in the coming weeks and that will be really important. So the cost‑of‑living help that we've already announced, is rolling out as we speak, or at least in the next couple of weeks, and that will be really important. Obviously down the track, if we need to contemplate doing more or doing different things in subsequent budgets, we obviously take into consideration the economic conditions and the condition of the budget at the time.
REBELLATO:
Treasurer, with the inflation figures out yesterday, many economists are saying this may take the pressure off the RBA, and to hold off another interest rate rise next week. Do you agree with them?
CHALMERS:
Obviously, the Reserve Bank Board takes its decisions independently. And what I try and do, is I try not to pre‑empt those decisions or second guess those decisions. They will weigh up the fact that inflation is moderating in our economy. The economy is slowing partly because of a global slowdown. We've seen a softening in retail and consumption and household savings and construction approvals, and they'll weigh all of that up when they come to this decision independently. They've got a job to do and they can explain their job. My job is to build a buffer in the budget which we're doing with that bigger surplus. It's to take some of the edge off these cost‑of‑living pressures without adding to inflation and we're doing that as well ‑ and we're investing in the future of the economy too.
REBELLATO:
Now speaking of the RBA, Philip Lowe's current term as Governor ends soon and we understand an announcement is imminent. Can we expect him to be given another term? Will Philip Lowe stay as Governor or will we see a new person at the top?
CHALMERS:
Well, I'm working through this decision with my colleagues. I'm trying to be as consultative as I can be about it. It's a big job and so it's a big call. And so we're trying to work through it in the most methodical and responsible way that we can. I've said publicly that we hope to make an announcement about this in July, so next month, so not that far away. But this is a decision taken by the government, and so the views of the Prime Minister, obviously, but my Cabinet colleagues more broadly matter a great deal to me. We're doing that consultation and we'll make the outcome of all of that and the decision of the government known in July before the parliament comes back.
REBELLATO:
Treasurer, yesterday we heard the results from a Parliamentary Committee, its findings into online gambling, and the harm, particularly on children. As a father of young children, would you like to see gambling ads banned, particularly during sport?
CHALMERS:
Look, I don't want to front run the really important work that Michelle Rowland and other colleagues are doing on this, and I pay tribute to Michelle, who's been working through these issues for some time, and already made substantial progress here. From a personal point of view, obviously, when you're watching the footy with your kids, you don't want a central part of that to be the gambling ads. You'd rather your kids focus on the amazing things that are happening on the field. And so, I think a lot of us have made similar points for that before, but from a policy point of view, Michelle's doing a terrific job working through all of the issues, and I don't really want to get in the way of that or front run that.
REBELLATO:
Now, we had some breaking news this morning. Taylor Swift fans are very excited, because she has added an extra show in Sydney, an extra show in Melbourne. As Treasurer, will you be happy to see this ‘Tay‑Tay’ economic boost next year?
CHALMERS:
Well, I'm really pleased that she's coming. Obviously it's a huge deal, and great for fans of Taylor Swift. I'm a little bit disappointed, frankly, she's not coming to Brisbane, or to Logan City. But it's great that she's coming to Australia. It's absolutely terrific. It's putting a smile on a lot of people's faces, and that's a good thing.
REBELLATO:
Maybe you can lobby on behalf of all Brisbane residents. Treasurer Jim Chalmers, thanks for joining us this morning.
CHALMERS:
Thanks, Emma.