MICHAEL ROWLAND:
Treasurer, good morning.
JIM CHALMERS:
Good morning, Michael.
ROWLAND:
What are you hoping to bring away from these consultations with US economic officials?
CHALMERS:
There couldn't be a better time frankly, Michael, to engage not just with my American counterparts, but right around the G20, International Monetary Fund, the World Bank and others - to take the temperature of the global economy less than four weeks before we hand down the Albanese government's second budget. And really one of the key pressures, one of the key features of the Budget that we hand down next month will be this global economic uncertainty. And the best response to economic uncertainty around the world is responsible economic management at home and that's what we'll see in the Budget again.
ROWLAND:
Okay, speaking of uncertainty, there's a lot of household uncertainty in Australia, as you know, and this morning, the chief economist of the Commonwealth Bank is predicting household incomes will collapse - his words - later this year because of a combination of high interest rates and high debt. Is the government bracing for that? And what can you do to help Australians in that sense?
CHALMERS:
First of all, I wouldn't use exactly that language but it is obviously true that all of these pressures that are coming at us from around the world are being felt around the kitchen tables of this country. There's no use pretending otherwise - people are under pressure and people are under the pump. And we expect our economy to slow considerably as a consequence of what's happening around the world but also, as a consequence of these higher interest rates, which began going up before the election last year - so we are conscious of that. And that's why our economic plan, which you'll see laid out in the Budget next month, is all about providing some responsible cost‑of‑living relief, where we can afford to do that and where it's responsible, but also trying to lay the foundations for future growth in our economy at the same time as we try and make our people, our communities, our economy and our country more resilient to these sorts of economic shocks that we're seeing around the world.
ROWLAND:
The IMF says Australia has the second highest risk of housing default in the world - it's tied into the fall in household incomes and those high interest rates you speak about. What can the government do to help keep Australians in their homes because those kitchen tables will be the scenes of some pretty tortured conversations for so many Australians as the year goes on?
CHALMERS:
Yes, I understand that, Michael, and that's why already we've put in place a pretty substantial program of cost‑of‑living relief, whether it's cheaper medicines, whether it's the cheaper early childhood education, which will come from the 1st of July this year. But also one of the Budget centrepieces will be some assistance for high electricity bills, trying to help people through a difficult period on that front as well. So we do understand that people are under the pump, we do understand there are difficult conversations happening around those kitchen tables right around the country. And we will do what we responsibly can, what we affordably can to try and make life a little bit easier for people as we get through this difficult period. But I also want to say, Michael, I know that the IMF report did have some pessimism in it about the world and to some extent about Australia but we are better placed than almost anyone else in the world to deal with this uncertainty that's happening in the global economy. We do have a lot coming at us but we've got a lot going for us as well: low unemployment, the beginnings of wages growth, which is important to the cost of living, and also we have well‑regulated, well‑placed, well‑capitalised banks as well. And so we have a lot going for us, including high prices for our exports. So we go into this new period of uncertainty from a position of relative strength.
ROWLAND:
Okay, just finally, you've got a lot on the table, your table as the Budget approaches. The AFL boss, Gill McLachlan, has confirmed he is going to delay his departure until after the Budget. He is very keen for federal money for that Tasmanian football stadium, you're not going to disappoint him, are you?
CHALMERS:
We will come to a view on the stadium in Tasmania in due course - that will principally be the job of the Infrastructure Minister and the Prime Minister speaking with Cabinet colleagues about that. We're obviously aware of the proposal in Tasmania, working through it with all the relevant stakeholders and when we've come to a concluded view, we'll make it clear.
ROWLAND:
Okay, so maybe not a view by the time of the Budget?
CHALMERS:
When we come to a concluded view, we'll announce it. We're obviously aware of the proposal. We've done a heap of work on it through Catherine King, my terrific colleague, talking with other colleagues at the same time and when we come to a concluded view, we'll make sure people know what it is.
ROWLAND:
Okay, Treasurer, really appreciate your time this morning. Thank you.