Mark Riley:
Treasurer, thank you for speaking to Weekend Sunrise.
Jim Chalmers:
Thanks very much, Mark.
Riley:
About your fourth budget, quite a feat in itself. The energy rebate extension, $150, half the amount of the first rebate. Why?
Chalmers:
This is hip pocket help for households, and that’s because we know that the cost of living is front of mind for most Australians and it’s front and centre in the Budget. This is another 2 quarters of energy bill relief, which recognises that even with all the progress we’ve made together on inflation, people are still under pressure and the Budget is designed to respond to that.
Riley:
Does that mean that after these 2 quarters, say the end of the year, people won’t need further assistance on their energy bills, they’ll start coming down?
Chalmers:
It means that there’s another 6 months worth of assistance and relief. We’ve provided 2 rounds of energy bill relief already. That’s played a really important role, taking some of the edge off these cost‑of‑living pressures.
What we’ve tried to do here, in the most responsible way that we can, is to continue that for another 6 months. $150 off people’s power bills, more hip pocket help for households, because we know people still need it.
Riley:
Will you review it after that 6 months and see if it’s needed for another 6 months?
Chalmers:
Yeah, we keep these cost‑of‑living measures under more or less constant review. One of the defining features of the first 3 budgets, and will be again in the fourth, is doing what we responsibly can to help people with the cost of living. We know, as I said, that cost of living is front of mind for a lot of people and that’s why it’s front and centre in the Budget.
Riley:
So, this isn’t all the cost‑of‑living relief in the Budget? There will be more?
Chalmers:
We’ve already made it clear last Thursday, the Prime Minister announced that we’ll make medicines cheaper as well. What people will see on Tuesday night is really that the primary focus of the government’s fourth Budget, just like the first 3, is easing cost‑of‑living pressures, but also at the same time as we strengthen our economy and make it more resilient in the face of all of this global economic uncertainty.
Riley:
So, a couple of things have been suggested. Household battery subsidies for people to install them in their homes. Is that on the cards?
Chalmers:
First of all, I’m not going to foreshadow all of the elements of the Budget. We’re obviously aware that people have put that proposal to us.
Riley:
Of course. Is it a good one?
Chalmers:
The focus of the energy elements of the Budget is this energy bill assistance. $1.8 billion, a very substantial investment, but a responsible one as well, which recognises the pressure people are under.
Riley:
Some months ago the PM said he was looking at a fixed fee model for childcare. So, parents didn’t pay more than about $10 or $20 a day. What’s happened to that idea? Is that something that’s being accepted by the government?
Chalmers:
What we’ve announced already at the end of last year and what will be funded in the Budget is what’s called our 3‑day guarantee. That’s an important step towards that universal early childhood education system that we want. We can’t get there from A to B in one step when it comes to universal childcare. And that’s why we’re investing more money in building more childcare centres, especially for not‑for‑profit providers and especially where areas where there’s a real need, the so‑called childcare deserts. So the Budget will have that money for new childcare centres, it will have money for the 3‑day guarantee. These are important steps towards that universal system that you’re asking about.
Riley:
And just checking, that’ll be it for childcare in this Budget?
Chalmers:
There won’t be the fixed fee model that you’re talking about. That’s because we need to get there in interim steps. We know that the Prime Minister, the Minister, myself and others, we are real enthusiasts for early childhood education. We think it’s a game changer for families and especially for children. It also helps people to work more and earn more if they want to. That’s why we’re big believers, that’s why it’ll be an important feature of the Budget.
Riley:
Ok. A pre‑election Budget, which is interesting in itself. So, you’re going to empty the bank? Are you throwing the kitchen sink at it?
Chalmers:
No, it won’t be some kind of free for all of public money as I’ve made clear on a number of occasions. Cost of living will be the primary focus, but we’ll provide that cost‑of‑living relief in the most responsible way that we can. And we’ll also do it in a way with it where we’re not neglecting our responsibilities to the future.
We know that there’s a lot of global economic uncertainty. What’s happening in the US and China, Europe and the Middle East casts a shadow over this Budget. There’s a lot of unpredictability and volatility in the global economy. So, in addition to that cost‑of‑living help, we’ll also be investing in making our economy more resilient because that’s the best way to build Australia’s future.
Riley:
And will there be measures in this Budget that we won’t hear about on Tuesday night that will be released during the election campaign?
Chalmers:
As I made clear, I think last week from memory, a lot of what’s in the Budget has been announced already. I mean, the big game‑changing investment in strengthening Medicare because more bulk billing means less pressure on families. That will be an important feature of the Budget – one of the most important features of the Budget already announced. There’ll be a small number of announcements to be made during the course of the election campaign, as you would expect. You’ve seen a few of these, Mark, over the years.
Riley:
Just a couple.
Chalmers:
But there’ll be some important initiatives announced on Tuesday.
Riley:
In the cost of living space as well?
Chalmers:
We’ve made it clear already cheaper medicines and some extra help with electricity bills. We’ve also got in the Budget the cuts to student debt, which is about cost of living as well. People will see a real focus on Tuesday night on the cost of living, but also making our economy more resilient in the face of this global uncertainty.
Riley:
Are you confident this is going to be enough to get you re‑elected?
Chalmers:
It remains to be seen. You know me, Mark. You know that I don’t take outcomes for granted when it comes to elections. What I am confident about is that we’ve made the right decisions for the right reasons. And I genuinely believe that if you have the right values and the right priorities, and if you take those right decisions for the right reasons, the politics will take care of themselves.
Riley:
Treasurer, thank you very much for speaking with Weekend Sunrise.
Chalmers:
Thanks.