James Glenday:
Let’s bring in the federal Treasurer Jim Chalmers who has been extremely busy since yesterday. Jim, good morning.
Jim Chalmers:
Good morning, James.
Glenday:
You’re back in Logan. Did you head down to the tavern and celebrate last night?
Chalmers:
No, an early night last night. I flew back in from Canberra after a couple of days in the Cabinet Room. A nice early night. A quick hello to the kids, cup of tea and an early night so that I could be here with you, bright-eyed and bushy-tailed this morning.
Glenday:
Well, we love that. For those of you at home wondering why on earth I asked that, there’s a recent screenshot from the satirical website The Betoota Advocate doing the rounds – there it is – among some Labor types in the wake of this rate cut, they’re not celebrating but they certainly look pleased behind the scenes. But I do digress, Treasurer.
This cut of course it’s not going to reduce the price of food, electricity or insurance. Can you understand that some Australians are still finding it very, very tough this morning and they’re looking for someone to blame, and generally that’s the government that’s in power?
Chalmers:
Look, I understand that there are still cost‑of‑living pressures in our economy, but this interest rate cut will help. What we saw yesterday was very welcome news for millions of Australians with a mortgage. It is the rate relief that Australians need and deserve, and it’s not the only way that cost‑of‑living help is being provided. We’ve got the tax cuts rolling out, the energy bill relief, cheaper early childhood education, cheaper medicines, Fee‑Free TAFE, rent assistance, getting wages moving again, and we’ll find out more about wages today when the wages data comes out. So we do recognise that people are still under cost‑of‑living pressure. Those pressures haven’t gone away overnight, but the rate cut will help.
Glenday:
I know you’ll be reluctant to make too many forecasts in this area. Others have been caught out by that before, including the former RBA Governor but do you think that there could be more cuts this year, and can you promise Australians this morning that the worst of inflation is now definitely over?
Chalmers:
Well, you’re right that I won’t make predictions about future movements in interest rates. I respect the independence of the Reserve Bank, its board and its governor, so I won’t be doing that. It’s very clear that the worst of the inflation challenge is behind us – the peak for inflation was in 2022 and as the Reserve Bank pointed out yesterday in its statement, we have made very substantial progress in the fight against inflation. That progress has been faster than was anticipated. The Reserve Bank say they are increasingly confident that they’re getting on top of this inflation challenge in our economy and that’s why we got the interest rate cut that we saw yesterday. It’s because together as Australians we’ve made very substantial progress on inflation. That progress has now been sustained. And what it means is in our economy right now we’ve got inflation down, we’ve got wages up, we’ve got unemployment low, and now interest rates have started to come down as well.
Glenday:
It will take a while to recover some of the living standards, but I just wanted to ask specifically about cost‑of‑living relief. You’ve sort of teased this idea that there’s more to come. What are you planning specifically? Are you looking at more, say, power bill subsidies?
Chalmers:
Well, we’re still making decisions about the government’s fourth Budget, but I think there are hints in the government’s first 3. And what we were able to do in the first 3 is provide substantial and meaningful cost‑of‑living help in the most responsible way at the same time as we delivered 2 surpluses and got the Liberal debt down. We were able to provide some cost‑of‑living help. And so, what we do from budget to budget is we make sure that whatever we do is affordable, that it is responsible. We make sure that the economic conditions warrant it. We know that people are still under pressure and that’s why if we can do more in a responsible way of course we will consider doing more.
Glenday:
There’s a lot of speculation this morning about a federal election date but the purists of course are hanging out for that next Budget at the end of March, the chance to be locked down with you for 7 hours. Are you actually preparing for it or will we be in an election campaign before then?
Chalmers:
We’re certainly preparing for it. We spent the vast chunk of Monday and Tuesday locked up in the Cabinet Room with my colleagues on the Expenditure Review Committee putting together a Budget, so we’re certainly working towards that.
Look, regardless the election will be at some point in the next 3 months. It’s for the Prime Minister to decide that. My job is to work with Katy Gallagher and the other colleagues to put that Budget together on the assumption that there’ll be a Budget towards the end of March.
Glenday:
Surely the Prime Minister is not so cruel that he’d make you do all the work only to snatch it away, your big moment in the sun at the last minute. Surely, he’s given you an indication that this is not going to happen.
Chalmers:
Well obviously there’s going to be an election at some point in the next 3 months, we’re aware of that. We know it’s the Prime Minister’s decision. Of course he will consult with his senior colleagues when he makes that decision. Our job is to continue to focus on the economy and particularly cost of living, and that’s why this rate cut that we saw yesterday was such an important demonstration of the progress that we’ve made together on inflation. This is the kind of progress that we want to see in the economy, when we see that inflation down and wages up and unemployment low and interest rates starting to come down. That’s our focus.
The Prime Minister will determine the election date in due course, and we’ll be ready regardless.
Glenday:
Very briefly before I let you go, has he told you the date?
Chalmers:
Has he told – I beg your pardon?
Glenday:
Has he told you the election date? Has he said, ‘Jim, it’s going to be this day’?
Chalmers:
No. And I wouldn’t have thought he would have decided yet. He’d be weighing up all of the options. There’s got to be an election in the next 3 months, of course he’s thinking about it, of course he’s weighing it up. I wouldn’t have thought he would have decided for sure and that’s why we continue these Budget preparations.
Glenday:
All right. I’m not sure whether or not I believe you or not but, Treasurer, we do appreciate your time this morning. Enjoy Logan even if you’re not at the tavern.
Chalmers:
Appreciate it, James.