Karl Stefanovic:
Treasurer, do you – thanks for joining us by the way. Do you take any responsibility at all for the majority of Australians being poorer and having lower living standards now?
Jim Chalmers:
Well, a couple of things about that, Karl. I take responsibility for the decisions that we make as a government to help turn that around and what we’ve seen in the recent data is that living standards are growing again. The main reason for that is because real wages are growing again in our economy. When we came to office they were falling sharply, they’re now growing again. We’ll get new wages data later today which will show that that continues to be the case.
We’ve also got the tax cuts and the cost‑of‑living help. And so what we’ve seen now for the last year or year and a half is living standards are recovering in our economy, partly because of the policies of the Albanese government. But we know people are still under pressure, there’s more work to do to make up the ground that was lost when inflation was very high.
Stefanovic:
Okay. Michele Bullock says she can’t do anything more, it’s up to business and government now. So, give me one thing you’ll do to improve living standards, just the one.
Chalmers:
Well, make our economy more productive, invest in people, skills and technology, make our economy more competitive – these are the sorts of things that will make us more productive over time and lift living standards. We have made some progress together the last year or year and a half, but it’s not enough to deliver the improvement in living standards we need in the long‑term. The productivity –
Stefanovic:
That’s going to take years, right?
Chalmers:
So productivity is the key. We’ve had this productivity challenge in our economy now for at least 2 decades, Karl.
Stefanovic:
Yeah.
Chalmers:
And it’s an international problem as well, most countries are dealing with a version of this challenge that we are. So we’ve got a big agenda, we’re rolling that out. We’re also working with the broader community on next steps because it will take time to turn around this productivity challenge that we’ve had in our economy. It didn’t just show up in the last couple of years, it’s shown up in the last couple of decades. It’s entrenched in our economy, and we’re working very hard to turn that around over time.
Stefanovic:
Years, right?
Chalmers:
It will take time, yes, it will take time and in every comparable country that’s the case as well.
Stefanovic:
Okay.
Chalmers:
But we’re rolling out a big agenda, we’re focusing on delivering that, and we’re working with people to work out what the next steps are.
Stefanovic:
I’ll get on to the agenda in just a second, but definitively, no new taxes.
Chalmers:
As the Prime Minister has said, our tax policy is to cut taxes. There are 2 income tax cuts coming next year and the year after. That’s our tax policy, that’s the policy that we took to the election. And from budget to budget there are other tax changes, including we changed the regime for multinational taxes so that they pay a fair share in Australia, or a fairer share to help fund Medicare and the like. So from budget to budget there are different considerations, but our tax policy is really clear, and that’s to cut taxes. Our political opponents went to the last election with a policy to increase taxes on 14 million Australians, we’re cutting taxes for those 14 million Australians.
Stefanovic:
In light of that, are you and the states preparing to introduce a road‑user tax or levy for EVs?
Chalmers:
Well, we said before the election, I think for the last couple of years, certainly for the last year or so we’ve been very public in saying we’re working with the states and territories to see if a change needs to be made here. We haven’t landed a final position on the substance of that or the timing of that. But we’ve been very upfront and very public in saying we’re working with stakeholders, we’re working with the states and territories to see if that change needs to be made. Over time, as fewer people drive petrol cars and more people drive EVs, the tax base will change, and a government will need to respond to that, and that’s why we’re going through these issues in the usual consultative and considered way –
Stefanovic:
So, it won’t be this week?
Chalmers:
– and we’ll take the time to get it right. It won’t be this week, no.
Stefanovic:
So, what will come out of this talk‑fest next week besides red tape and some doughnuts?
Chalmers:
Well, obviously not characterising it the way that you are, Karl, in your characteristically cynical way, may I say. I’ve got a much more optimistic view about working together with people. Shaking the tree for good ideas in our economy I think can only be a good thing. There’s been a lot of consultation happen already, and that’s also a good thing. And so next week the big focus will be on how we make our economy more productive and lift living standards, how do we make it more resilient in the face of all this global economic uncertainty. Those are the priorities for next week, and I only see it as a good thing, trying to involve more and more people in grappling with those big issues in our economy.
Stefanovic:
So, you come up with the good it’s, the big expansive ideas, you float them, and the PM kills them.
Chalmers:
Well, again, I don’t see it that way, Karl. We’re aligned when it comes to our economic agenda, and you see the fruits of that progress that we’ve made together as Australians and as a government in yesterday’s interest rate cuts.
Stefanovic:
Yes.
Chalmers:
Three interest rates cuts in 6 months, that is good news. And it’s a demonstration of the progress that the Prime Minister and I, the government, the country has made when it comes to fighting inflation, keeping unemployment low and getting real wages growing, which are good things, and we work very closely together on that.
Stefanovic:
Would you say your relationship is better or worse than the Howard and Costello relationship?
Chalmers:
Much better, much better, infinitely better than that relationship, and we work closely together, and we speak regularly about our economic agenda more broadly, about the roundtable specifically, I don’t think that’s front page news.
Stefanovic:
You heard the fracas this morning over Snoop Dogg playing at the Grand Final in Melbourne. Have you got a favourite Snoop Dogg song, being young and hip?
Chalmers:
Well, Snoop Dogg song is my ring tone on my phone, Karl.
Stefanovic:
What?
Chalmers:
It is.
Stefanovic:
Which one?
Chalmers:
Well, it’s the one – it’s ‘Still D.R.E’, it’s what he did with – I think Snoop’s best work is with Dr Dre, and there’s a track called ‘Still D.R.E.’ I’ve taken all the cuss words out, so it’s just instrumental.
Stefanovic:
There we go.
Chalmers:
That’s the one, that’s my ring tone, Karl.
Stefanovic:
I will give you $100 bucks if you sing this song.
Chalmers:
I won’t be doing that, because as you and I know, Karl, from the dance floor of City Rowers in the 1990s, there’s a lot of cuss words in Snoop songs which are unrepeatable at 7am. But I think it’s great that Snoop’s doing the GF, and I’m looking forward to him performing there.
Sarah Abo:
Yeah.
Stefanovic:
Good, yeah. Take that, Tommy Elliott. Thanks Treasurer, good to talk to you.
Chalmers:
Have a great day.