Peter Stefanovic:
Parliament returns in Canberra this morning for what could be the final hit out before the election is called. Joining us live is the Treasurer, Jim Chalmers.
Treasurer, good to see you. Thank you so much for your time today. So, look, our economic story will be front and centre over the next few weeks. You might get a rate cut or 2 but the Coalition believes that doesn’t matter because the damage is done. Food prices up, housing up, energy bills up, business insolvencies massively up. How do you counter your argument with that?
Jim Chalmers:
First of all, the Labor government’s focused on the cost of living, Peter Dutton’s focused on cuts and conflict and culture wars and that’s one of the important differences as we get closer to the election. But the other one is this – the same Australians who we acknowledge have been under substantial pressure in recent years would have been thousands of dollars worse off if Peter Dutton had his way on wages or tax cuts or cost‑of‑living help and they’ll be worse off still if he wins the election. And so we want cost of living to be front and centre in this election contest. Our opponents –
Stefanovic:
That’s speculation at this point, though, because you don’t really know that.
Chalmers:
It’s not speculation that Peter Dutton didn’t want the tax cuts, he didn’t want the energy bill relief or the other cost‑of‑living help, that’s not speculation, it’s a fact that Australians would have been thousands of dollars worse off if he had his way. When it comes to the future, we know he’s a risk because we know his record. When he was the Health Minister, he came after Medicare and bulk billing with a GP tax, we know that they pursued a policy of deliberate wage stagnation and we know that this nuclear insanity that he has been peddling would push electricity prices up, not down. So, these are very real risks that are posed by Peter Dutton and the Coalition –
Stefanovic:
Risks or scare campaign that you’re launching there?
Chalmers:
Risks.
Stefanovic:
Because I’ve asked them a tonne of times about that and they say there’s going to be no changes to Medicare.
Chalmers:
You expect them to say that and they said that last time. Last time when they came into office, they wouldn’t tell people what cuts they had planned and we’re seeing that once again on Sunday. Peter Dutton said that there will be big cuts in the budget, but we won’t tell you what they are until after the election and I think that that should scare the Australian people. His record on Medicare is scary, their record on wages is scary, their records on cuts and rorts and waste is scary too, and so it’s incumbent on us to point that out. Our focus is on the cost of living and building Australia’s future, Peter Dutton’s focus is on cuts and conflict and culture wars and we will see that play out over the course of the parliamentary fortnight.
Stefanovic:
Speaking of costs, you’ve costed out the Coalition’s free lunch pledge at anywhere between $1.6 and $10 billion. That seems excessively high for a 20k tax break. How did you come to that?
Chalmers:
Well, now we know why Peter Dutton wouldn’t come clean on the cost of his free lunch for bosses policy or what he will cut to pay for it and that’s because this policy would smash a multi‑billion‑dollar hole in the budget and the Treasury costings that we are releasing today show that if eligible businesses only claimed an eighth of what they are entitled to, the cost would be $1.6 billion a year. If every business claimed what they’re entitled to, it would be more than $10 billion a year. So, Peter Dutton wants workers to pay for long lunches for bosses and the bill will run into billions of dollars. It would absolutely smash the budget and that’s why he hasn’t come clean.
Stefanovic:
Isn’t it – the bosses would be paying, it wouldn’t be the workers. The workers are getting the break, aren’t they?
Chalmers:
Taxpayers.
Stefanovic:
Right.
Chalmers:
Taxpayers would be footing the bill for this policy of taxpayer‑funded tax breaks for long lunches and entertainment. And again, you asked me at the start about the election year. There’s a big difference here. We’re for tax cuts for workers and responsible help for small business, the Coalition is for taxpayer‑funded long lunches and entertainment for bosses. There’s a difference there and we’ve put a cost on that today. This is why Peter Dutton hasn’t released his own costing, either he didn’t know what the policy cost when he announced it or more likely he didn’t want Australians to know and unfortunately, there’s a pattern of behaviour there because he won’t tell Australians what he will cut to pay for it either.
Stefanovic:
Ok. He says the costings are going to come out soon or closer to the election. I just want to squeeze a couple more questions in. Treasurer, are you encouraged by this tariff pause this morning from the US to Mexico, or should we be prepared for increased tariffs eventually?
Chalmers:
The markets have responded positively to this pause but I think overall what we’re seeing here are some pretty big developments out of DC but not a big surprise flagged in the election campaign. We are confident in Australia’s ability to navigate these new policies from a new administration. We are well placed, we are well prepared and we’ve got a relationship with the Americans, an economic relationship which is mutually beneficial. And by that I mean the Americans are running a trade surplus with us. They’ve got tariff free access to our markets, it’s an important and key relationship and it’s very different to the relationship that the Americans have with some of the other countries which have been the focus of recent days.
Stefanovic:
I might just squeeze this one in too before we go. I just want to talk about Townsville just for a moment. We just had a guest on who doesn’t know what’s going to be left of her home in Ingham. Our home state of Queensland, is there anything extra that you’re considering in terms of financial assistance for those who are caught up in it?
Chalmers:
Queenslanders are tough but these are hard times. My colleague Jenny McAllister is on her way to Townsville now to speak with locals in affected communities. We’re working closely with the Queensland Government. We’ve already got the defence force helping out around Townsville, we’ve supplied some military helicopters. The assistance payments are flowing and people should check their eligibility. We know in difficult times like this, Australians are there for each other and we are there for them as well. It is going to be an anxious few days. We will be there as the rivers come up and the roads are cut, but we’ll be there for the recovery as well and we want to give that assurance to everyone going through a very difficult time in those affected communities, really from Mackay all the way to the Far North, in Cairns and inland as well. People are doing it tough and we will be working for them.
Stefanovic:
The Premier joining us next hour as well, folks. Jim Chalmers, thank you. We’ll talk to you again soon.