SARAH ABO:
Relief, restraint and reform, 3 words the Treasurer has used to describe the new Federal Budget.
KARL STEFANOVIC:
But some are calling it reckless, with the Labor government splashing $7.8 billion on new cost‑of‑living measures in the hope to artificially drive down inflation. Treasurer Jim Chalmers joins us now live from Canberra. Josh Brolin one second, Jim Chalmers, the next, our cup runneth over. Treasurer, good morning to you. How did it feel last night to deliver your last surplus as Treasurer?
JIM CHALMERS:
First of all, Karl, I’m a bit jealous too about that interview that you just had with Josh. I don’t know how you get an interview that kind. You were all over him, Karl, which was lovely. Great interview. In terms of last night’s Budget, there was the second surplus. We’ve only been here for 2 years, and in both years we’ve got surplus budgets, which is a good thing, not as an end in itself, but because it means we’re getting the Budget in much better nick, so that we can fund a substantial but responsible cost‑of‑living package and make investments in housing and Medicare, the care economy, and in strengthening the economy into the future as well.
ABO:
Alright. The headline obviously from this is the $300 energy credit that every household is getting. So Treasurer does that mean that holiday homes and second homes, will get multiple discounts? Potentially getting people more than $600?
CHALMERS:
First of all, the centrepiece of the cost‑of‑living help is a tax cut for every taxpayer. But you’re right, a big part of it in addition to that is energy bill relief for every household. The energy bill relief goes to the person whose name is on the bill primarily. But we work closely with the states and with the retailers. So, the implementation might be a little bit different depending on who the retailer is and where they are in Australia. But typically the best way to understand it is it goes to the person whose name’s on the bill. So, if you’re renting, it will go to you, because typically when you’re renting a property long term, it’s your name on the bill, so it’s you who gets the help.
ABO:
So, if you have got a holiday house, you’ll get 2?
CHALMERS:
It depends on the retailer, but typically it goes to the person whose name’s on the bill.
STEFANOVIC:
You’re prepared to let that slide is the question.
CHALMERS:
That’s not overwhelmingly the focus of the energy bill relief, of course. The energy bill relief is being provided broadly because we understand that millions and millions of people are under cost‑of‑living pressure, and that’s what the Budget is designed to try and ease. With the tax cuts, with the energy bill relief, with rent assistance and cheaper medicines. This is all about recognising that people are under pressure. More help is on the way and it’s in the form of a tax cut and energy bill relief and in other ways as well.
STEFANOVIC:
I guess people look at this and go, okay, that’s all well and good if you’re struggling, but $300 for every Australian doesn’t exactly pass the pub test. I’m not sure Twiggy needs his power bill rebate.
CHALMERS:
He’s not the focus of the program here. I think you and I could agree, all 3 of us could agree that people are under pressure in middle Australia, people on middle incomes, they are under the focus of our Budget.
STEFANOVIC:
So why do they get it –
ABO:
Shouldn’t that have been the focus? Instead of giving them an extra $300, give it to those who actually need it?
CHALMERS:
I think a lot of people who need help with the cost of living will be receiving this energy bill rebate and 13.6 million people will be getting a tax cut and almost a million people will be getting help with their rent. This is about a comprehensive cost‑of‑living package. Overwhelmingly the priority of our Budget is to ease cost‑of‑living pressures and put downward pressure on inflation.
STEFANOVIC:
The reality is that you needed it that broad to drive the CPI figure down. So, will the RBA see through this? I mean, obviously, though, they’re going to have a look at it and they’re going to see it for what it is.
CHALMERS:
First of all, it’s not quite right, Karl, because when we provided the assistance in a more targeted way in the last budget, what we saw is it put substantial downward pressure on inflation. We know that from the Bureau of Stats, which tell us that instead of energy bills going up in the year to March by around 15 per cent, they went up about 2 per cent. And that shows that we have been able to put downward pressure on inflation and that’s what we want to do again. Don’t forget, Karl, that when we came to office, inflation had a 6 in front of it. It’s now got a 3 in front of it and the Budget is about trying to drive that inflation down further.
ABO:
There have also been 13 interest rate hikes and I think no one wants to see another one. I guess the issue is this might be short term relief, but there’s going to be a lot of long term pain, as you know, and a lot of people are calling this a budget for the election that’s coming up. Just a sweetener for everyone out there.
CHALMERS:
I don’t see it that way, Sarah. That won’t surprise you to hear that. Our primary motivation here is to recognise that people are doing it tough and are trying to help them with these cost‑of‑living pressures. That’s the motivation behind the cost‑of‑living package. We’ve got a substantial package of cost‑of‑living relief but delivered in a really responsible way as part of getting the Budget in much better nick, helping people with the cost of living, fighting inflation and investing in the future.
STEFANOVIC:
It just doesn’t make any sense to me that you’d sling wealthier Australians $300 when they just don’t need it, Treasurer.
CHALMERS:
They’re not the focus here, Karl and once you go beyond providing this energy –
STEFANOVIC:
I know but why spend it if they’re not the focus?
CHALMERS:
Because once you go beyond providing this energy relief to people on pensions and payments, which are a big priority for us, once you go beyond that, the retailers don’t have the systems to slice and dice by income. They don’t have the information on people’s incomes. And so we’d have to design and create a whole new system which would take longer and take money and take a lot of effort. And so what we’re doing instead is we’re providing this energy bill relief to every household. That’s because we acknowledge that people are under pressure in middle Australia as well. And that’s why we are proud to be delivering a tax cut for every taxpayer, energy bill relief for every household, in addition to help with rent and medicines.
STEFANOVIC:
Alright, just finally, before we go, we had a viewer write in and say, look, 60 schooners back in the day, used to, you know, get you 60 schooners. You only get 30 schooners for $300. Magic Round this weekend. I mean, it’s just a real blow to hardworking Australians to have to fork out more for a schooner. And you’re to blame.
ABO:
It’s all your fault.
CHALMERS:
I don’t know about that, Karl, but I know that all of Brisbane and southeast Queensland are looking forward to Magic Round. I’m looking forward to watching the Broncos beat Manly by about 60 or 65/68.
ABO:
Geez, you are ambitious, aren’t you? What an optimistic Treasurer we have.
CHALMERS:
No, I’m really optimistic about Friday night in Magic Round. I know that the Broncs are primed and we love to beat Manly, so I’m looking forward to it.
STEFANOVIC:
On that, we can share. Good on you, Treasurer.