2 February 2024

Press conference, Beenleigh, Queensland

Note

Subjects: Labor's bigger tax cuts for more Australians, interest rates

JIM CHALMERS:

This week I’ve been in Launceston speaking with steel workers, Carrum Downs speaking with early educators, today here with plumbers and sprinkler fitters and later today with health workers as well.

Labor’s cost‑of‑living tax cut for middle Australia is all about supporting the hard work of people who make our economy and our country strong. This is all about supporting people who work hard so that they can provide for their loved ones and get ahead. And today I wanted to thank Andy and Nathan and Gary and all of the people here at this wonderful training centre at Beenleigh training the plumbers and the sprinkler fitters of the future and to have the opportunity to speak with apprentices who are working so hard to be the trades people of the future. We want to back them in and we want to give them a bigger tax cut and that’s what Labor’s cost‑of‑living tax cut for middle Australia is all about.

Now, this electorate that we’re in right now is the electorate of Forde. Now, Forde is the Coalition‑held seat which stands to benefit the most in Australia from Labor’s cost‑of‑living tax cut. Every taxpayer in Forde will get a tax cut under our plan, but 89 per cent of taxpayers will get a bigger tax cut. Every plumber will get a tax cut, but under our plan something like 94 per cent of plumbers will get a bigger tax cut under our plan.

Every taxpayer in Logan City will get a tax cut, but 89 per cent of taxpayers will get a bigger tax cut. Every taxpayer on the Gold Coast will get a bigger tax cut, but 87 per cent of taxpayers will get a bigger tax cut because of our plan.

This is good for workers and families and communities right around Australia, and it’s also good for the economy. It’s not just about Forde, or Farrer, or Dickson, or Dunkley; this is about supporting the workers and their families and communities right around Australia by making sure on the 1st of July every taxpayer gets a tax cut, but 84 per cent of Australian taxpayers will get a bigger tax cut because of what the Prime Minister announced last week.

This is good for workers, good for communities, but it’s also good for our economy. This is not relief or reform; this is relief and reform. It’s more relief for middle Australia and it’s a better reform for our economy. It’s a better reform for our economy because it’s better for workforce incentives, for labour supply, and it doesn’t put upward pressure on inflation – that’s a point that the Treasury and others have made clear. So this is the right plan. It’s a good plan for workers like these, for communities like this one and for our economy and for our nation as a whole.

Now, I call on Peter Dutton and the LNP not to stand in the way of a bigger tax cut for more Australians and help with the cost of living. I call on the LNP members of the Gold Coast not to stand in the way of a bigger tax cut for the vast majority of people living and working on the coast. I call on the LNP members who represent Logan City seats not to stand in the way of a bigger tax cut for more people to help with the cost of living.

There’s obviously a lot of speculation right now about what the Liberals and Nationals will do when we put this legislation before the parliament. One thing is really clear: the only definitive statement the Liberals and Nationals have made about our cost‑of‑living tax cut for middle Australia is when Sussan Ley was asked whether she would unwind our changes she said absolutely. Sussan Ley has said on behalf of the Coalition that they will absolutely unwind our tax changes.

Theirs is a recipe for higher taxes on middle Australia to fund an even bigger tax cut for people who are already on the highest incomes. What has been made abundantly clear in the course of the last week or so is from Anthony Albanese, middle Australia will get a bigger tax cut to help with the cost of living. From Peter Dutton, all we get is the usual nasty and negative and divisive politics. The difference is really clear and the choice is really clear: Anthony Albanese wants to give you a bigger tax cut to help with cost‑of‑living pressures, Peter Dutton just wants to give you more of the same divisive, nasty and negative politics that he has become known for.

I say to the LNP – don’t stand in the way of a bigger tax cut for the plumbers and sprinkler fitters and steel workers and early educators and health workers of this country who desperately need and deserve a bigger tax cut to help with the cost‑of‑living pressures. The way that the LNP and Peter Dutton in particular have gone about this shows how diabolically out of touch he is with middle Australia and with these cost‑of‑living pressures. I call on LNP members, whether they’re from Logan, the Gold Coast, throughout southeast Queensland or right around Australia, don’t stand in the way of Labor’s cost‑of‑living tax cut which will make life a little bit easier for middle Australia.

JOURNALIST:

Yesterday Premier Steven Miles called on the RBA to lower interest rates. He’s one of multiple Premiers to do so. Do you think it’s appropriate that Premiers are saying that, given you say you won’t comment on what the RBA should do?

CHALMERS:

I think it’s worth reminding people that most Australians have a view about interest rates, and premiers and treasurers at the state level are entitled to express their view about that. I’m not troubled by that. I’d be surprised, frankly, if the Reserve Bank was troubled by that.

I’ve got a different set of responsibilities and obligations. My job is to safeguard the independence of the Reserve Bank and my job is to make sure that I’m doing everything I can as the nation’s Treasurer to put downward pressure on inflation. We got some really welcome and encouraging news on the inflation front during the course of the week, but we know it’s not mission accomplished because people are still under pressure, and that’s why Labor’s cost‑of‑living tax cut for middle Australia is so important.

I’m untroubled by premiers and state treasurers expressing a view about interest rates. They’re not the only ones expressing a view about that. My obligations are different as the nation’s Treasurer. I cherish the Reserve Bank’s independence. I think it’s an important feature of our system and I’ve got my own job to do. I take responsibility for that, and what the inflation numbers showed this week is that we’re making welcome and encouraging progress, but it’s not yet mission accomplished.

JOURNALIST:

[inaudible] has said the government doesn’t direct the RBA. So why should the premiers make remarks?

CHALMERS:

Again, I think the premiers and chief ministers and treasurers at a state level and territory level have got a different set of responsibilities, a different set of obligations. Once again, I’m not troubled by the commentary that we hear from them or from others, frankly. I’ve got a different set of responsibilities, a different set of obligations. I’ve got my own job to do and I’m pleased with the progress we’ve been making.

JOURNALIST:

Is the government speaking to the Greens about the revised stage three tax cuts?

CHALMERS:

Obviously we’re engaging with the parliament in an effort to pass these tax cuts which will deliver a tax cut for every Australian taxpayer with a bigger emphasis on middle Australia to help with the cost of living. So we engage in the usual respectful way with other members of the parliament in order to pass our legislation. Primarily, in this case it’s a job for the Prime Minister and my colleague Katy Gallagher to engage with senators, but we’re all engaging in one way or another to try and get this legislation passed.

And that’s why we need to hear from Peter Dutton and the LNP. Stop stuffing around, stop coming up with all kinds of excuses not to support our cost‑of‑living tax cut for middle Australia. Come out and say that you’ll enthusiastically back these changes because they are overwhelmingly better for the communities and the country that these LNP members are supposed to be representing.

JOURNALIST:

So, just clarifying, yes, you are speaking to the Greens?

CHALMERS:

Of course we are talking to all parts of the crossbench in the Senate and the House, engaging with them in the usual respectful way to make sure that we can pass this really important legislation. The biggest obstacle to a bigger tax cut for more people is Peter Dutton and his LNP. And so if people want to see bigger tax cuts come 1 July for more people to help with the cost of living, then we need to see Peter Dutton and the LNP do the right thing for once. I call on Peter Dutton to put people before politics for once and do the right thing by the sprinkler fitters and plumbers and steelworkers and early educators of this country.

JOURNALIST:

Dutton has indicated he won’t take money away from voters. That’s the strongest sign yet the Opposition will support revised stage three tax cuts. Do you see this as a positive sign?

CHALMERS:

I think Peter Dutton is stuffing around and stumbling around looking for all kinds of excuses not to support our bigger tax cuts for more people to deal with the cost of living. We’ve seen them flailing about and fumbling about in recent days and what we’re left with is the only definitive statement that’s been made – Sussan Ley was asked – Will you unwind Labor’s tax cuts – and she said, “absolutely.” – that is a recipe for higher taxes on middle Australia to fund even bigger tax cuts for people on the highest incomes. We have found a much, much better way to deliver a similar amount of tax relief with a bigger emphasis on middle Australia. And it’s better for our economy and the Liberals and Nationals should support it.

JOURNALIST:

The Opposition is demanding more detail. Why won’t you give them the legislation [inaudible]?

CHALMERS:

We’ve announced the detail and the legislation will be before the parliament before long. We’ve released the detail, including some of the numbers that they are quoting – numbers that we provided on the day that we made the announcement and so we’ve provided the detail. I’ve taken the unusual step, frankly, of also providing the Treasury advice – pages and pages of Treasury advice – to support the decision that we took. We’ve provided all of the detail, the legislation will reflect that.

I think this point about legislation is, once again, the LNP looking for excuses to do the wrong thing by people, plain and simple. They know what these tax cuts are all about. We’ve made the detail very clear. We’ve been explaining why we’ve come to a different and better position. We’ve been upfront about what it means for workers in communities like this one and they should stop stuffing around and stumbling around looking for excuses to oppose us.

JOURNALIST:

It’s been reported your relationship with the PM is strained. When did you last speak with him?

CHALMERS:

Yesterday and the day before and on many occasions throughout recent weeks and recent months. Some of that stuff that I’ve seen reported is, frankly, absolute rubbish. It is complete and absolute rubbish. I speak with the Prime Minister on an almost daily basis, we are in almost constant contact. We are very good mates. We’ve got a very close and productive and effective working relationship. And more than that, I pay tribute to the Prime Minister for the leadership that he’s shown here. What the Prime Minister has done here is he’s put people before politics. He’s shown the kind of leadership which is absent on the other side and as consequence of the Prime Minister’s leadership, people will be better off, so I pay tribute to him for that. I speak with him very, very frequently. I speak with him about a whole range of matters – work related and non‑work related. We’re good mates and we work closely together.

JOURNALIST:

Thank you.

CHALMERS:

Thanks very much.