KARL STEFANOVIC:
Good morning Treasurer.
JIM CHALMERS:
Good morning, Karl and g’day to the wonderful people of the Scenic Rim – beautiful part of South‑East Queensland.
STEFANOVIC:
It sure is. All right. First up, honestly, is Albo an honest man?
CHALMERS:
Yes he is and the reason for that Karl is when we came to a better position on these stage three tax cuts, he fronted up, he took responsibility, he owned the change and explained why this was a better outcome for people. At the end of the day, Karl, there will of course be lots of discussion about the politics of it and the polls and the commentary and all the rest of it, but this is about a tangible benefit for more people to help with the cost of living and we shouldn't lose sight of that.
STEFANOVIC:
Still, you must be buoyed by the polls today on tax cuts that it kind of smoothed the way does it not for negative gearing changes?
CHALMERS:
I don't see it that way, Karl, on the second half of your question. But on the first half of your question, it's been really obvious even before the polls overnight, as I moved around the country over the course of last week speaking to steel workers and early childhood educators and healthcare works and plumbers and sprinkler fitters that there's a lot of support for what we're proposing here, and that's because we're doing the right thing for the right reasons in the interests of the people.
So the polls and the pundits, they will take care of themselves, this is really about a tangible benefit, it's about a cost‑of‑living tax cut for more people to deal with the pressures that we know they're under.
STEFANOVIC:
The negative gearing rumours persist, nonetheless.
CHALMERS:
Not because of us, Karl. I understand we'll get asked about other tax changes from time to time but the reason our opponents want to focus on that – they want to focus on what we're not proposing because they can't defend their position on what we are proposing.
What we are proposing is a bigger tax cut for more people to deal with the cost of living and the Opposition's position on that is indefensible and unsustainable, and so they want to talk about everything else.
STEFANOVIC:
The Greens want to boost two welfare payments in exchange for their support. Will you blink?
CHALMERS:
We expect the Parliament to support the changes that we have proposed. If the Greens try and knock off our changes to stage three tax cuts, if they vote against us, they'll be voting for Scott Morrison's stage three changes from five years ago.
What we want to see here is not a Greens party or a Coalition party more interested in bagging the Labor party than delivering for low and middle‑income earners in our economy and in our country.
So, it's an important opportunity for the Parliament, I think, to get behind our changes. They mean more tangible benefits for more people dealing with these cost‑of‑living pressures and you know, Karl, that your viewers are under the pump and we are trying to do something about that. That's why we've made this difficult decision, politically contentious decision, but the right decision for the right reasons.
STEFANOVIC:
So if the Greens arc up, you won't play ball?
CHALMERS:
Oh, we always engage with the crossbenchers and with the other members of parliament, but we expect –
STEFANOVIC:
So what are you prepared to compromise on then?
CHALMERS:
We expect the proposal that we put forward, the tax cuts that we put forward, we expect them to pass the Parliament. We will engage in the usual respectful way with the other members and senators to see that happen.
When it comes to social security payments, we lifted JobSeeker in the last Budget in a permanent way, we increased rent assistance, we provided help with electricity bills and cheaper medicines – we'll always try and do the right thing by people, but these tax cuts should stand on their own as a good effort to get people a little bit more help with their cost‑of‑living pressures.
STEFANOVIC:
It looks like you've got a tradie tax coming next, Treasurer, utes in the firing line; that will go down well in heartland.
CHALMERS:
Rubbish. No, that's absolute rubbish. This is about getting costs down rather than up.
STEFANOVIC:
How's that going to work? Utes, four‑wheeled drives priced out of the market before electric alternatives are even available.
CHALMERS:
I'll tell you, Karl, there's absolutely no evidence that it pushes up the price of utes and cars. The Americans have had this for something like 50 years and they love their pick‑up trucks as you know. This is about getting more options on the market, more fuel‑efficient cars and utes so that they use less petrol and they cost less to run.
This is a cost‑of‑living measure which is all about getting costs down, not up, and giving people more choice. It doesn't tell anyone what kind of car to buy or what kind of ute to buy, it just means there are more options for people who want to get a more fuel‑efficient vehicle to get their costs down.
STEFANOVIC:
So how much will a ute be reduced in price as a result of these changes?
CHALMERS:
Well, this is about the cost of fuel, and the figures that Chris Bowen and Catherine King put out there yesterday, something like $1000 a year cheaper on petrol if you get a fuel‑efficient vehicle on average, and that's what this is all about.
But again, Karl, I say this to your viewers, including those getting ready to head out to work, that this is not about mandating what kind of car you buy, it's about giving you more choices, so if you want to get your running costs down, you can.
STEFANOVIC:
All right. State premiers are putting heat on the Reserve Bank to lower rates. Isn't that economically irresponsible?
CHALMERS:
The Reserve Bank will make their own decision independently, as you know. You and I have spoken about this before. I respect the independence of the Reserve Bank. We are making some good progress when it comes to inflation, but people are still under the pump, which is why our cost‑of‑living tax cut is so important and why it's so important we found a way to do it without putting upward pressure on inflation.
STEFANOVIC:
Good to talk to you, Treasurer, thank you.
CHALMERS:
You too, Karl, all the best.