SARAH HARRIS:
Treasurer Jim Chalmers is one man who probably doesn't need answers from Waleed's budget hotline. But Treasurer, I've got to ask, what do you think of Waleed in a robe?
JIM CHALMERS:
Well, I might not need answers from Waleed and I also didn't need to see that picture ‑ once you see it, you can't unsee it. I'm relieved he kept the shoes on. He kept the shoes on. Not many people rock the robe up top and the shoes down the bottom.
WALEED ALY:
The shoes were your problem.
HARRIS:
I think we've established Waleed in a robe, hot. But you know what's not hot? Inflation.
ALY:
Excellent segue.
CHALMERS:
Perfectly done.
HARRIS:
Isn't there a danger, Treasurer, all this spending could fuel the fire of inflation?
CHALMERS:
No, I don't think so. And that's not the advice of the Treasury, when we were putting the Budget together. What we've done here in this Budget, particularly with this cost‑of‑living relief package, is we've carefully calibrated and designed it so that it takes some of the edge off these cost‑of‑living pressures in the economy without adding to inflation. The spending is spread out over a period of time. Some of it is unavoidable spending. And the cost‑of‑living package itself ‑ when you think about the energy bill relief, for example ‑ will actually put downward pressure on the inflation forecast in the Budget. So, we've been very careful about it, very aware of it, very cognisant of it, and we've designed a package which helps people out at the same time as it invests in their future and doesn't make this big inflation challenge even worse than it is.
ALY:
So, you mentioned the cost‑of‑living package, but on the other hand, you've got stage three tax cuts that are already legislated, that will come in next year. You could undo that. It's within your power to undo that, and that is worth four times the amount of your cost‑of‑living package. And these stage three tax cuts put money in the hands of those who are the wealthiest rather than those who need the most. In the current circumstances, surely you can't proceed with that.
CHALMERS:
As you know, Waleed, we haven't changed our position on that. They're in the Budget last night, just as they've been in the Budget since they passed the parliament some years ago. What we've tried to do in the Budget is focus our cost‑of‑living help on the people who need it the most. On top of, we also need to recognise that those tax cuts that you're asking me about, they kick in at about $45,000. So, there's also relief in those tax cuts for people on low and middle incomes as well. And we think it's important, we've always thought it's important that when the Budget can afford it, we should be providing relief, particularly to people on those low and middle incomes.
ALY:
Yeah, but let's be clear, those at the top end, the Clive Palmers of this world, they'll get an extra nine grand from this. There's no doubt that the lion's share of the benefit goes to those who need it the least, especially at a time like this when there's a squeeze on. I know it's legislated. Are you promising now, are you confirming now for everyone to hear that you're not going to revise this?
CHALMERS:
I think we've been pretty clear. And I've been asked all day, because, I was asked yesterday what the cost of these tax cuts were. And I've been asked for the best part of 24 hours now. And my answer is the same every time. We didn't contemplate changing them in this Budget. We haven't changed our position. But what we have done is we've made sure in this Budget, in the new cost‑of‑living relief that we're providing, that we've got the base rate increase to JobSeeker and the student payments, we're doing something about single parents in particular, we've got an increase in Commonwealth Rent Assistance, we've got the energy bill relief. And all of these things together are deliberately designed to help people who are doing it toughest, who are under the pump the most. That's been a deliberate strategy in this Budget and I think that's a demonstration of our values.
SAM TAUNTON:
Now, Treasurer, one of my favourite things about the Budget, and let me tell you, there are so many favourite things I have, is when a politician gets thrown a question like, how much is a loaf of bread? John Howard used to have a little cheat sheet with him. What did your team prep you on?
CHALMERS:
They prepped us on a bunch of stuff. I know that a loaf of bread is about $4.50, but if you get the fancy stuff, it's a bit more than that at the bakery.
TAUNTON:
Very good.
ALY:
So, give us the grocery item. Which grocery items do you know off by heart?
CHALMERS:
Well, mostly I'm responsible for the bread or the milk on the way home. So, the milk is about $3.10, $3.20, depending whether you buy it at the servo or at Coles. The bread is as I've described it. The petrol was about a dollar 92 last time. Beyond that I ‑
TAUNTON:
He’s good. Now, before you go, Treasurer, I thought we should give you the opportunity, do you have a question you'd like to ask Sexy Waleed's budget hotline?
CHALMERS:
Sure, I have many questions for Waleed, but the one that's really been on my mind, Waleed, is what's been the impact of the assumptions on inventories on the GDP forecast for 2024‑25?
ALY:
Leave the dirty talk to the professionals.
TAUNTON:
I think you got the answer you deserve.
ALY:
That's what you get when you bring up inventories, mate. Pretty saucy.
TAUNTON:
Come at the King, you better not miss.
HARRIS:
Thank you so much for your time.
CHALMERS:
I really appreciate it.