Mark Riley:
Treasurer, thanks for joining us at Seven News.
Jim Chalmers:
Thanks, mate.
Riley:
Tax cuts, they’re not huge but helpful. Is this just returning bracket creep?
Chalmers:
That’s part of the motivation. It’s really about making sure that every Australian taxpayer gets 2 more tax cuts. These tax cuts will top up the tax cuts which already began flowing in July. We do understand and acknowledge in isolation they are modest, but in combination with the rest of the tax relief and with the other cost‑of‑living help that we’re providing in the Budget, it’s all about helping people with the cost of living, returning bracket creep and doing that in the most responsible way we can.
Riley:
And why do people have to wait 16 months?
Chalmers:
Because we’ve got to weigh up all of the budget constraints and all of the other priorities in the Budget. We’re rolling out a tax cut for every taxpayer already. This will top it up twice, next year and the year after. We think that’s the best combination of cost‑of‑living help, tax reform and recognising our budget constraints as well.
Riley:
Abolishing non‑compete clauses, this is pretty big for a lot of workers.
Chalmers:
This is a really important economic reform. There are millions of Australian workers caught up unnecessarily in these non‑compete clauses which prevent them from seeking opportunities which will pay them better, whether it’s starting a small business or working around the corner.
We are going to abolish these non‑compete clauses for millions of Australian workers so they can seek those higher wage opportunities and earn more. That’s what joins the tax cuts and the non‑compete clause reform together. It’s all about ensuring more Australians are working and earning more and keeping more of what they earn to help them with the cost of living.
Riley:
And we’re not talking about high‑flying executives here, we’re talking about average workers, right?
Chalmers:
Absolutely. Hairdressers and barbers are a pretty good example, looking for an opportunity which will pay them more. If you look at the modelling, this has a big economic benefit, making it easier for workers to move between different employers but also a boost to wages. An independent expert group said that the boost to wages could be about 4 per cent for the affected workers. For the average full‑time worker that’s about 2 and a half grand a year, another 50 bucks a week.
Whether it’s the 50 bucks a week cumulative benefit from the 3 rounds of tax cuts or the 50 bucks a week from abolishing non‑compete clauses, this will help Australians earn more, keep more of what they earn and provide for their loved ones.
Riley:
Inflation in the ban 6 months earlier. So, more reason for the Reserve Bank to keep cutting.
Chalmers:
Well, as you know, Riles, I don’t give free advice to the Reserve Bank, but I am very heartened by the progress we’re making together as Australians on inflation. Not just on inflation. The Australian economy is genuinely turning a corner. We’ve got inflation down, real wages are up again, unemployment is very low, we’ve got the debt down, interest rates have started to come down and growth is rebounding solidly as well.
That’s more important and more remarkable in the context of all of this global economic uncertainty. Australians deserve a lot of credit for the progress we’re making together in our economy and the Budget’s about building on that momentum, building on that progress with a plan for the future.
Riley:
We talk about the global uncertainty, are we Trump‑proof after this Budget?
Chalmers:
One of the big goals of the Budget is to make ourselves more resilient in the context of this global economic uncertainty, and the escalating trade tensions are a big part of the story, but not the only part of the story.
We’ve got escalating trade tensions are slow in China, we’ve got a war in Eastern Europe, we’ve got a collapsing ceasefire in the Middle East, we’ve got political uncertainty around the world and so for Australia and for this Budget, the key task is to recognise there are 2 pressures: cost‑of‑living pressures, global economic uncertainty – and the Budget is an economic plan in dealing with that.
Riley:
Why should people re‑elect a Labor government?
Chalmers:
It really sets up the choice at the election. We have tried our best to make these decisions for good economic reasons rather than for political reasons, but it does set up a choice at the election. Labor helping with the cost of living, or Peter Dutton with secret cuts that will make people worse off. And if he cuts, Australians will lose.
We can’t risk this progress that we’re making together in the economy. The election will be about the progress we’ve made together to here. It will be our plan from here in the economy set out in the Budget. It will also be about the very substantial and I think unacceptable risk posed by Peter Dutton.
Riley:
Treasurer, thanks for your time.
Chalmers:
Thanks very much, Mark.