PETER STEFANOVIC:
Joining us live is the federal Treasurer Jim Chalmers. Treasurer, good to see you. Happy new financial year to you. Lots of extra cash starts to wash through the economy from today. Will folks even notice it though as they battle bigger bills and higher mortgage repayments?
JIM CHALMERS:
Morning, Pete. Look, today is an important day because today there is more cost‑of‑living relief for every Australian. You know, every taxpayer gets a tax cut today. Every household gets energy bill relief. Millions of people on awards will get a pay rise. Cheaper medicines and an extra couple of weeks of paid parental leave.
And that’s because we don’t just acknowledge people are under pressure, we’re actually responding to that, we’re doing something about it with this cost‑of‑living relief which is substantial and meaningful but also responsible.
STEFANOVIC:
You’ve got a few various reports that I’ve noticed today, Treasurer, more people are being forced into hardship plans when it comes to energy bills, et cetera. Mortgage arrears are currently at an 8 year high so back to that first question, will folks even notice this extra help that starts from today?
CHALMERS:
I think they will, the average tax cut, for example, is $36 a week, the average tax cut for a household with kids is $63 a week, and that’s in addition to energy bill relief. A lot of people are getting a pay rise and all of the other ways that we’re helping to ease the cost of living.
So we are doing as much as we responsibly can, conscious of the constraints in the budget and the pressures on inflation. But really importantly what we’re today, in addition to rolling out this substantial and meaningful and responsible cost‑of‑living relief, is we’re doing it in a way that puts downward pressure on inflation rather than upward pressure on inflation.
We know from the Bureau of Stats last week and the Competition Watchdog that what we’re doing in energy bill relief, for example, is taking some of the edge off these prices. And so were it not for what we’re doing to roll-out this cost‑of‑living relief in a responsible way, inflation would be even higher in our economy.
STEFANOVIC:
So is that as close to a guarantee that you can get that this – and we’re talking about billions of dollars here into the economy, that this is not inflationary?
CHALMERS:
Well 2 points about that. I mean, first of all, there is a lot of cost‑of‑living relief beginning today but it doesn’t all hit the economy at once. A year’s worth of cost‑of‑living relief doesn’t hit in one day, it’s over the course of the year. But it begins today, and people will begin to feel it in their next pay packets and in their energy bills over the course of the second half of the year.
So, it begins today but not every dollar of it hits the economy at once, and that’s really important.
The second thing is when we did this energy bill relief in the Budget before last, which the Liberals and Nationals voted against if you can believe it, we know that that took some of the edge off energy prices. The Bureau of Stats told us that and we expect to see that again.
STEFANOVIC:
I remember asking you this after your Budget, Treasurer. If there is a rate rise in the next few months, as more and more economists now predict, is that on you?
CHALMERS:
Well I think I told you then and I’m happy to repeat now, Pete, that I take responsibility for my parts of this fight against inflation. And 2 things matter most here.
First of all, running a responsible budget. We’ve turned 2 big Liberal deficits into Labor surpluses. The Governor of the Reserve Bank has said that those 2 surpluses are helping in the fight against inflation.
And secondly, designing this cost‑of‑living relief in a way that puts downward pressure on inflation rather than upward pressure on inflation, and that’s what we’re doing as well. And I take responsibly for the rollout of that cost‑of‑living relief and for those 2 surpluses that we’ve delivered.
STEFANOVIC:
Elsewhere this morning, Treasurer, Fatima Payman, the senator, is she a thorn in the side of your government at the moment?
CHALMERS:
I don’t see it that way, Pete. I have great respect for all of my colleagues, and I know that this has been a difficult time in recent days. My job is not to focus on the internal matters but to focus on rolling out this cost‑of‑living relief and managing the economy and that’s what I’ve been focused on.
STEFANOVIC:
Should she be expelled from the party?
CHALMERS:
I’m not going to get into that, Pete. I think the steps that the Prime Minister took yesterday were the appropriate ones. You know, I support the actions taken yesterday and I know that there are strong views about this inside our party and outside our party as well.
I don’t focus a lot on the internal issues around the sorts of things you’re asking me about. I focus on the economy and cost of living and fighting inflation and delivering surpluses, and that’s certainly my focus today.
STEFANOVIC:
Okay, we’ll leave it there. Treasurer Jim Chalmers, thanks as always for your time.