JIM CHALMERS:
Thanks very much to everyone here at Australian Container Freight Services for having us here at the Port of Brisbane. Every single worker here at this really terrific facility will get a tax cut on the 1st of July. Ninety‑seven per cent of truck drivers get a bigger tax cut, 97 per cent of forklift operators get a bigger tax cut on the 1st of July, and 94 per cent of warehouse workers get a bigger tax cut because of the changes that we have announced. And so I wanted to thank everyone for the opportunity to be here.
I'm here with the wonderful, wonderful State Member for Lytton, Joan Pease, who is a massive supporter of the workers and businesses here at the Port of Brisbane and I wanted to pay tribute to her and thank her for all of her work and all of the ways that we work together to represent the workers and businesses and managers that we have met today.
Today is a really important day when it comes to the workers of this country. Real wages growth is back. Real wages growth is back in our economy even sooner than we expected. This means that Australians are earning more and because of our tax cuts, they will keep more of what they earn. This real wages growth that we see in the new numbers today is very welcome and it's very encouraging but we know that people are still under pressure and that's why our cost‑of‑living tax cuts are so important. If you look at these numbers today, wages growth at 4.2 per cent, the fastest annual growth since 2009, this is the first time we've had three consecutive quarters of real wages growth since 2018. It means that wages growth under the Albanese Labor government is more than four per cent – under our predecessors, it was closer to two per cent.
These are really welcome, really encouraging numbers, but we're not getting carried away because we know that people are still under pressure and that's why we want to give every taxpayer a tax cut from the 1st of July. The big difference here with our government compared to the government that it replaced is we want more people earning more and keeping more of what they earn. The Liberals always want people working harder and longer for less, and that is the difference. And what we're seeing in these numbers today is that our policies are helping to ensure that inflation is moderating and wages are growing and tax cuts will be flowing from the 1st of July as well.
So what we’ve been able to do and what these new numbers show – wages up, inflation moderating and tax will be down from the 1st of July. These are really important outcomes, very encouraging, very pleasing, very welcome outcomes in the wages data today. Real wages growth is back in our economy after a long absence, and we need to remember what the real wages situation was when we came to office. Real wages were falling 3.4 per cent when we came to office a bit over a year and a half ago. Real wages are now growing in our economy. Real wages growth is back, and that means Australians are earning more as a consequence of this Labor government, and from the 1st of July they’ll be keeping more of what they earn as well.
Happy to take some questions.
JOURNALIST:
[Indistinct] having real wages growth earlier than expected [indistinct]?
CHALMERS:
One of the best ways that we can help people deal with these cost‑of‑living pressures is make sure that people are earning more and keeping more of what they earn. These are the key objectives in our economic plan, and what these numbers show today is that our policies are helping and our policies are working to get wages growing again in this economy.
The Reserve Bank Governor, the Treasurer Secretary and others have made it very clear that they don’t see signs of a wage price spiral in our economy. We’re seeing inflation moderating at the same time now as wages are growing at the fastest clip for around 15 years. Both of those outcomes are good, and when the tax cuts flow from the 1st of July, that will be important cost‑of‑living relief as well.
If you take a step back and look at what this data means, it means that wages are growing, it means inflation is moderating and from the 1st of July, tax cuts will be flowing as well. These are important ways that we help people with the cost‑of‑living pressures that we know are still hanging around.
JOURNALIST:
[Indistinct]. Does this mean your overhaul of stage 3 tax cuts may not be as necessary as you thought?
CHALMERS:
Of course not. What we’re seeing here is real wages growth returning ahead of schedule. The Treasury was expecting real wages growth in 2024. These numbers show that we got real wages growth in 2023. That’s a very, very good thing to see wages growth earlier than anticipated.
But we know that people are still under pressure. People are still confronting these cost‑of‑living pressures in these suburbs and right around Australia, and we want to help people with that. And what we’ve been able to do is we’ve been able to help inflation to moderate, we’ve been able to help wages to grow and by giving these cost‑of‑living tax cuts on the 1st of July, it means more help for more people with the cost‑of‑living pressures that are still hanging around. So all three of those things are of a piece. They’re all as important as ever – to get inflation to continue to moderate, wages to continue to grow and to get these tax cuts flowing. We want to see real wages growth in a sustained and in a sustainable way. We’re very pleased with this outcome today, but we know that there’s more work to do.
JOURNALIST:
[Indistinct] pay packet that’s going backwards. What’s your reaction to that?
CHALMERS:
I mean, what would Angus Taylor know? Honestly. You know, this is a former government, a Liberal Party and a National Party, which gave us real wages falling by 3.4 per cent and that’s because for the best part of the decade they pursued a strategy of deliberate wage suppression and wage stagnation. And then when we tried to do something about cost‑of‑living pressures – whether it’s electricity bill relief or in other ways – they voted against it.
So if Angus Taylor had his way, wages would be lower, inflation would be higher and the tax cuts on the 1st of July would be skewed towards people who are already on the highest incomes, so he doesn’t come to this with clean hands or with a lot of credibility. The comments that he makes about wages and inflation and the cost of living I think demonstrate every time he opens his mouth why people don’t take him especially seriously.
JOURNALIST:
There’s average Australians who might be earning more than they’ve ever earned and they’ve got less to spend on anything discretionary. Mortgages have gone up. Bills have gone up. Why not cut the fuel excise? Why not do things, measures, even alcohol, things that people need in their everyday living?
CHALMERS:
We’re easing the pressure on people across a range of fronts. The tax cuts are an important way that we’ll do that from the 1st of July, but we’re providing electricity bill relief, rent assistance, cheaper medicines, cheaper earlier childhood education, cheaper TAFE fees. Really, across a whole range of areas, we are investing tens of billions of dollars in easing some of the pressures that people confront.
And I’ve been asked on earlier occasions about the fuel excise and other ways. We think we’ve found a more effective way to provide more help to more people to help with the cost of living. We’ve done that in a responsible and in a considered way, and we’ll continue to do that. Between now and the next budget, we’ll consider whether any other steps are responsible and affordable and necessary to take even more of the pressure off but the tax cuts which will flow from the 1st of July, combined with this real wages growth that we’re seeing ahead of schedule and all of our other efforts to ease cost‑of‑living pressures we feel is the best combination of help that a government can provide, because we understand and appreciate that people are under pressure. We don’t just acknowledge that, we’re doing something about it.
JOURNALIST:
[Indistinct]. What does this mean for wage [indistinct]?
CHALMERS:
This is a real concern to us. Non‑compete clauses have grown in our economy to the point that we are very focused on them and very concerned about them. I want to pay tribute to my colleague Andrew Leigh who has put this on the national agenda as part of the work that he and I do on our competition review.
Now, we want to make sure that people can, if they want to, work harder and work more and earn more. Part of that is making sure that they can find the opportunities that are best for them. And so we are very focused and very concerned about non‑compete clauses. These numbers that are out today are confronting numbers, but not especially surprising numbers, and that’s because this is an issue that Andrew Leigh has made a focus of the work that he and I do together.
JOURNALIST:
The retirement of the Woolworths CEO following that Four Corners interview, what do you think about that?
CHALMERS:
Well, a couple of things about that. I mean, first of all, I try and maintain a good relationship with the CEOs of the major employers in this country, and that has been the case with Brad Banducci as well. We have had a productive working relationship. And my preference always is to not play the personalities when it comes to these sorts of issues but to focus on the substance. And I think it’s very clear that we can do more collectively as a country to make sure that there is a fair go for farmers and families, to make sure that our supermarkets are as competitive as possible. That’s why we’re reviewing the Food and Grocery Code with Craig Emerson’s help. That’s why we’ve got the competition review with Andrew Leigh. That’s why I’ve given the ACCC more powers to get to the bottom of pricing in our supermarket chains.
This was a decision for Brad, ultimately a decision for him and for the company that employs him. My focus is not on Brad himself. I’ve had a good and effective working relationship with Brad, which I’m grateful for. My focus is on the issues themselves – competition and a fair go for farmers and families.
JOURNALIST:
[Indistinct] Woolworth’s share price in the wake of their CEO stepping down. But the [indistinct] seems to be still going very, very well. Do they still have questions to answer about price gouging and profiteering?
CHALMERS:
I think there are certainly issues there that warrant the ACCC’s attention, and that’s why we’ve given the ACCC Chair the powers that she needs to make sure that there is the appropriate level of transparency and ideally competition in our supermarket chains.
I don’t comment on movements in the share market; that’s obviously the aggregate of decisions taken by individual shareholders and investors. But there are issues worthy of our attention here, and that’s why we’ve got the grocery code review, the competition review, and it’s why I’ve given the ACCC the powers that it needs to get to the bottom of all of this.
You know, what really matters here is a fair go for farmers and families, making sure that among the cost‑of‑living pressures that ordinary people are confronting right around Australia that they get a fair go at the checkout. That’s my focus.
JOURNALIST:
[Indistinct].
CHALMERS:
Well, I think it’s a really important opportunity. The ACCC now has the powers it needs granted by the government – by myself and the Prime Minister – to get to the bottom of what’s happening in our supermarkets so that people get a fair go at the checkout. Of course I take the views and the recommendations and the work of the ACCC very, very seriously. The ACCC Chair is someone I work very closely with on behalf of the Australian people. The best way to get a fair go for people at the checkout is to make sure there’s transparency and competition and that’s why I will be closely monitoring the work of the ACCC as they do their best to get to the bottom of this.
JOURNALIST:
Do you have a gut feel about whether it’s going on, that sort of stuff is going on?
CHALMERS:
I don’t like to pre‑empt that kind of considered and methodical work from the ACCC. Certainly, right around Australia I hear this concern expressed to me. That’s one of the reasons why I’ve given the ACCC these additional powers and why we’re doing all of this work across the competition policy landscape.
Now, we know that people are under pressure. Now, we’ve got real wages growth. We’ve got tax cuts flowing from the 1st of July, inflation is coming off in welcome and encouraging ways but not fast enough, and one of the ways that we make sure that people get a fair go at the checkout is to make sure that our markets, and particularly here in this case our supermarkets are fair and that people are getting a fair go when they check out.
JOURNALIST:
[Indistinct]. Will the government do something more to help renters?
CHALMERS:
Well, we are doing 17 different things to improve the housing market in this country with a big focus on people who rent. Whether it’s the increase in the rent assistance in my most recent budget, but probably more foundationally, more fundamentally, are the efforts we’re putting into building more homes. This is all about recognising that renters are under the pump. We don’t have enough rental properties, that’s why I changed the tax arrangements in the budget, that’s why I gave an increase in rent assistance in the budget, it’s why through the Housing Australia Future Fund and in a whole bunch of other ways we’re trying to build more supply. The best way to fix the issues in the rental market is to build more homes. We have got a multi‑billion‑dollar broad and ambitious agenda to do that.
Great, thanks very much, everyone.