MONIQUE WRIGHT:
Morning to you, Treasurer. Thanks so much for being with us. Okay, so let’s use the figures that have been put out by your own press release – 13.6 million Australians will get a tax cut. Now, that is an average of $1,888 over a year. That’s $36 a week. Now, while everything is appreciated, really, it’s not going to touch the sides, is it? Thirty‑six bucks a week.
JIM CHALMERS:
Well, good morning to both of you and to your viewers. You’re right that from tomorrow, every Australian taxpayer will get a tax cut, every household will get energy bill relief, there’ll be a pay rise for millions of Australian workers on awards, cheaper medicines, and an extra couple of weeks of paid parental leave as well and we hope, and we expect that this will help people with these cost‑of‑living pressures that we know people are under. Now, $36 a week is the average. For an average household with kids, it’s about $63 a week and this is all about helping people with the cost of living. Now, the tax cuts are the most important part, the biggest part of our cost‑of‑living relief but as I said a moment ago, they’re not the only way, that more help will be on the way from tomorrow.
MATT DORAN:
Treasurer, let’s be real, though. I mean, isn’t all this just going to be gobbled up by inflation? Realistically, are you doing enough for families who can’t heat the house, who can’t pay the rent?
CHALMERS:
Well, a couple of important things about that. First of all, this cost‑of‑living relief is meaningful, it is substantial, but it’s also responsible and it’s responsible because it’s within the context of a budget that is in much better nick. We’re delivering 2 surpluses at the same time as we’re helping people, not instead of helping people. But in relation to inflation, we’ve also designed it quite deliberately to make sure that it’s taking the edge off inflation rather than adding to it. We know last week from the Bureau of Stats and from the ACCC, the competition watchdog, that the sorts of things we’ve been doing with energy bill relief have meant that inflation broadly, but energy prices and the rest would be much higher were it not for our efforts. So, we’re confident but not complacent we can get on top of this inflation challenge, we can provide this cost‑of‑living relief and we can get the budget in better nick without smashing the economy.
WRIGHT:
But gosh, our inflation is just so sticky, isn’t it? While we’re looking at other countries where inflation is falling, US, Singapore, Germany, Spain, the list goes on. They’ve all got lower inflation than what we do. What is your plan to get on top of that? Are you doing enough in that regard?
CHALMERS:
Well, first of all, our experience here is not that different to what we’ve seen around the world. Our inflation peaked a bit later and a bit lower than some of those countries that you mentioned but the shape of it has been broadly similar. In the US earlier in the year it went up a couple of times before it started going back down again. In Canada and in Europe in the last couple of weeks, we’ve actually seen inflation rising so the Governor of our Reserve Bank has said that our experience here is pretty similar to what we’re seeing around the world, but in terms of what we’re doing about it, our priority here is to make sure that people can earn more and keep more of what they earn – that’s a better way of delivering cost‑of‑living relief rather than building nuclear reactors and the like in 15 years. And our responsible economic management and our surpluses combined with this cost‑of‑living help means that we can get on top of this inflation which is still too high in our economy, but much lower than what we inherited, and we know from the ABS and from others that our policies are helping.
DORAN:
Treasurer, you know, some families might be watching, and it’s easy to get lost, I think, in some of the words and the lovely narrative around all of this. But you’re out there talking to people, you’re talking to families. There’s a big chance of another rate rise. Can families handle that? Will they survive that?
CHALMERS:
First of all, I try not to predict or pre‑empt decisions taken independently by the Reserve Bank. That’s their job. My job is to focus on where I can make a meaningful difference and that’s what tomorrow’s cost‑of‑living relief and a tax cut for every taxpayer and energy bill relief for every household is all about. I do talk to a lot of people in this local community but also around Australia and I know that people are under the pump but more than acknowledging that and understanding that, we’re actually doing something about it, and that’s what tomorrow is all about, and it’s why tomorrow is so important to get these tax cuts and this energy bill relief and these pay rises flowing so that people who are genuinely under the pump, under substantial pressure, so that we can help people to meet those costs of living. And when it comes to interest rates, again, I don’t engage in a running commentary on the independent Reserve Bank’s work, but I think it’s really clear that the interest rate rises which are already in the system are already putting a lot of pressure on people – we’ve seen that in a whole bunch of economic indicators. I understand that, and that’s another reason why this help tomorrow is so important.
WRIGHT:
Yeah. So, as you’re saying, tomorrow, July 1, things are set to change. You’re the Treasurer, you’re one of the leaders of this country. How much longer does life look like this until it feels easier for households?
CHALMERS:
Well, what we’ve seen the last 2 years and what we expect to continue to see is these price pressures in our economy, this inflation in our economy will continue to ease. It doesn’t always ease in a perfectly straight line. We’ve seen that around the world as well and we’re seeing that here in Australia, too. But our role, we understand our role here, which is to try and make life a little bit easier for people. The tax cuts, the energy bill relief, the pay rises, the cheaper medicines, the paid parental leave, that’s what it’s all designed to do and to do that in a meaningful way, a substantial way, but also a responsible way which recognises we’ve got to get that budget in better nick at the same time as we help people and fight inflation.
WRIGHT:
All right, Jim Chalmers, we appreciate your time. Thank you.
CHALMERS:
Thanks so much.