SABRA LANE:
The Federal Treasurer, Dr Jim Chalmers, joins me now. Good morning. Did you lie?
JIM CHALMERS:
Oh, no Sabra what we're doing here is we've come to a different position and we've come to the different position for the best possible reason, which is we can provide more tax relief for more people to help them with the cost‑of‑living. Now we are being upfront with people and saying we have come to a different view. We've come to a different view because what we're proposing today is better for middle Australia, better for cost‑of‑living pressures, better for women and workforce participation and better for the economy, without adding to the inflationary pressures that we are dealing with.
LANE:
Broken promises, though, can be very toxic. You witnessed the Gillard‑Rudd government's demise partly due to the broken promise on a carbon tax. How will you avoid the same toxic backlash?
CHALMERS:
Well, a couple of things about that, Sabra. I mean, what we're doing here is we're putting people before politics. Of course, these will be politically contentious. Our opponents will play their usual mindless and nasty, negative politics over this. We understand that but I believe you build trust by making the right decisions for the right reasons in the interests of the people and when you come to a different view, as we have, you front up and explain why the circumstances have changed, why our position has changed and how people will benefit from what we are proposing today. Everybody still gets a tax cut. Everyone who was getting a tax cut before, more people will get a tax cut, bigger tax cuts for more people, done in the most responsible way without adding additional pressure to inflation. That's what we are proposing today. We've come to a different view for the right reasons.
LANE:
I don't want to conjure up the thought of him in tights, but you're hoping that 8 million taxpayers will view Mr Albanese as a Robin Hood. They'll gain more, 1 million, not so much. They're normally voters who aren't aligned with Labor, so it doesn't matter.
CHALMERS:
All 13.6 million Australians will get a tax cut. I think you said that in your introduction to Isabel's story a moment ago. That's important. People will get a tax cut right up and down the income scale. It's not our intention to set people against each other here. Everyone will still get a tax cut. More people will get a bigger tax cut, which is what we're doing here to help people with cost‑of‑living pressures. We're not interested in setting people against each other. That's what the Coalition does. Our interest here is getting to an outcome which is better for middle Australia. Everyone still gets a tax cut. We're helping people with the cost‑of‑living pressures that they are confronting.
LANE:
A test of this will come in the by‑elections for Dunkley and Cook, won't it? They will be tests of this, especially given that the Prime Minister's been on record as saying that "People have a right to believe when a politician makes a commitment before an election, they keep it and that's what I intend to do." That's what the PM said in 2022. Given this change, some voters will think, what's next? Negative gearing, capital gains tax, franking credits?
CHALMERS:
Well, I think the difference here, Sabra, is that the change that we are proposing will leave people better off, that's the first thing. The second thing, and you'll see this at the National Press Club later today when the Prime Minister talks about these tax changes that we are proposing, is that he and I, the Cabinet, the government, we are owning this change that we are proposing. We're not pretending this isn't a different view, but it became increasingly clear to us that we could provide the same amount of tax relief in a much more effective way. As I said before, better for the economy, better for middle Australia, better for cost‑of‑living pressures. Having come up with a better way to deliver that tax relief, it's our responsibility to do that. We understand it will be politically contentious. We understand that people will take shots at us about it but we're putting people before politics for a very good reason. We understand people are under the pump, we don't just acknowledge that, we're doing something about it.
LANE:
Apart from these tax cuts, then, is that it? There's nothing new for pensioners or the unemployed.
CHALMERS:
In today's announcements?
LANE:
Full stop?
CHALMERS:
Today's focus is on the income tax system, but we are already providing, as you know, targeted relief to pensioners and people on low and fixed incomes when it comes to energy bill relief and cheaper medicines and the like. There is also a change today, an improvement to the Medicare levy thresholds which will benefit people on the lowest incomes. Your colleague Tom has written about that overnight, and that's important. But today's focus is on tax. It's on this inflation challenge that we have in our economy. It's about bigger tax cuts for more people to help them with the cost‑of‑living.
LANE:
That's about today. But are there new measures that could possibly be underway, announced possibly in the Budget for pensioners and the unemployed who don't really gain much from this package today?
CHALMERS:
They are the primary beneficiaries of the cost‑of‑living relief, which is already rolling out, I think that's important. But as the Prime Minister and I ‑‑
LANE:
Nothing new for them, though?
CHALMERS:
As the Prime Minister and I have both said, we are prepared to consider additional cost‑of‑living relief between now and the Budget. It became clear to us when we had this option to provide more tax relief to more people. We thought it important that we announced that right away but the ordinary work of finding responsible and affordable ways to support people that will continue in the lead up to the Budget. If we can afford to do more and if it's responsible to do more for other people not benefiting from today's announcement, obviously, we'll consider that in the usual way.
LANE:
Now, you've been in talks with the competition watchdog chief, Gina Cass‑Gottlieb. Has she got all the powers that she needs to crack down on the supermarket giants? What else would she like to do?
CHALMERS:
I don't think she does and I've been in discussions with her, I’ve had really terrific discussions with the ACCC Chair, who's doing a wonderful job. We've had some very constructive conversations about what additional powers she may need to ensure that we get a fair go for families and farmers when it comes to our supermarkets and we hope to be able to say more about that really quite soon.
LANE:
Dr Jim Chalmers, Federal Treasurer. Thanks for joining AM this morning.
CHALMERS:
Appreciate it, Sabra, thanks so much.