Jim Chalmers:
Today we’re announcing progress, important progress, that we have made with the regulators and the banks when it comes to lending to Australians with student debt and also lending for developments of apartments.
We’re coming at this housing challenge from every responsible angle. We’ve asked the regulators and the banks to apply a more reasonable lens to loan applications from people with a student debt. We need to recognise that student debt is different to other kinds of debt. It’s different because paying it back is contingent on income. If people are between jobs the repayment of a student debt is paused. There are a whole range of reasons why this is a different kind of debt. This was pointed out in the recommendations of the Universities Accord.
Now, for the last few months I’ve been working closely with the regulators, APRA and ASIC, I convened the CEOs of the major banks in Canberra yesterday to make sure that this change can be made. These are commonsense changes which will get more people into homes. These are commonsense changes which will get more people into homes and help us build more homes as well. And that’s why it’s so important.
We want to make sure that people with a student debt aren’t disadvantaged when it comes to getting a mortgage. I want to thank the regulators and I want to thank the CEOs of the major banks for coming at this in such a constructive way. There’ll be a little period of consultation now, but I am confident that these commonsense changes will make a meaningful difference for people applying for a loan. This is all about getting more people into homes and building more homes. That’s what these announcements are all about today.
I also just want to briefly connect the announcement made by the Prime Minister and Minister King today on Rex with the announcements that we made yesterday when it comes to regional banking. From the terminal to the teller, we are supporting regional Australia. The announcements on regional banking and on Rex show that we are going into bat for the bush. We take our responsibilities to regional Australia very seriously. This Albanese government governs for the whole country. And this is all about making sure people in regional communities can get access to the reliable and affordable flights that they need and deserve. And yesterday’s announcement was all about making sure that people can continue to access bank branches in communities where there are branches currently.
So from the terminal to the teller, we are supporting regional Australia. We’re supporting the people and small businesses and communities in every corner of our country, whether it’s the announcement today on Rex or yesterday’s announcement on regional banking.
Happy to take any questions.
Journalist:
Have you had any contact yet with the Treasury Secretary in the US or other members of the administration to discuss the steel and aluminium tariffs?
Chalmers:
I’ve met with my counterpart before the election, Scott Bessent is the newly appointed Treasury Secretary. I spent some good time with him before the election and we were able to talk about some of these issues. And I’m looking forward to catching up with him before long.
When it comes to our engagement with the Trump administration, we’ve now had the Foreign Minister, the Defence Minister and the Prime Minister all engaging with their counterparts as part of our strategy to stand up for the workers and industries of Australia when it comes to these announcements out of DC. I’m looking forward to discussing these issues with Secretary Bessent before long.
Journalist:
What do you make of the Trump administration’s concerns that we’re too close to China?
Chalmers:
I think it’s really clear from the productive and positive conversation that Prime Minister Albanese had with President Trump yesterday that we have a very close and mutually beneficial economic and security partnership with the US. And Americans understand that we maintain relationships right around our region, including with China. We’re pleased and proud that we’ve been able to stabilise the relationship with China. We don’t pretend that there isn’t complexity there that we need to manage, but there are opportunities as well. And I’m sure American friends understand that.
We’ll just go David and then we’ll come back.
Journalist:
Can I just have one follow‑up?
Chalmers:
Sure Issy. Go Issy. It’s a follow‑up.
Journalist:
They’ve said in their executive order that it’s a threat to their national security, our relationship with China. So it’s not something that they’re brushing over.
Chalmers:
I haven’t seen that wording that you are referring to. But I think countries understand that we will maintain relationships throughout our region, and that’s what we’re doing.
David.
Journalist:
On this aluminium concern that they’ve got, was there any record that you ever saw that we’ve actually made an undertaking of that kind that they believe we’ve made? Where is it? Is there any record in the government of that undertaking? And is it even feasible for us – for you to tell aluminium producers in Australia they’ve got to throttle back their sales just because there’s this feeling in Washington DC that they’re selling too much?
Chalmers:
A couple of things about that. First of all, not that I’m aware of, I haven’t seen documentation of that, that doesn’t mean it doesn’t necessarily exist. I haven’t seen it if it does. I’m sure other colleagues will try and get to the bottom of what’s being said here.
I’ve seen the reports overnight and what we’re talking about here is something from almost a decade ago under a previous Coalition government. Malcolm Turnbull, Arthur Sinodinos and others have been able to provide a bit more colour and context from that period. Our focus in the Albanese government is what’s in front of us, not what may or may not have been said or happened almost a decade ago.
Our focus is on what’s in front of us. And that’s why Prime Minister Albanese’s productive and positive conversation with President Trump yesterday is so important. President Trump has said that he’s prepared to consider an exemption. We don’t take any outcome for granted, but as President Trump and Prime Minister Albanese both said yesterday, this economic relationship is mutually beneficial. What makes us different to some of the other countries that have been the focus of President Trump in recent days and weeks is the Americans run a trade surplus with us, and that makes us different.
Journalist:
Should the previous government have even made any, verbal undertaking like that? To tell aluminium producers not to sell too much?
Chalmers:
I’m not going to second guess steps taken by previous Coalition governments. It’s for them to explain and to provide the necessary context. I’m genuinely focused on what’s in front of us. This is an important industry to us, very important industry. We’ve gone into bat for the workers and industries who are at risk from an escalation of trade tensions. We’ve done that in a respectful way, in a productive way. And I think it augers well that Prime Minister Albanese was able to have such a long conversation with President Trump about these issues yesterday.
Journalist:
But the US is saying this is one of the key reasons –
Chalmers:
– I’ll just take 2 more and I’ve got to go. So we’ll go Cam then –
Journalist:
If the US is saying –
Chalmers:
Have you got one as well?
Journalist:
No, it’s all right. I’ve got one on Rex, but it’s all right.
Journalist:
If the US is saying [inaudible] overnight that this verbal agreement that’s apparently taken place is one of the key reasons they’re now looking at going ahead with these tariffs on Australia, do you feel a bit stitched up, if this is the first you’re hearing about it, by the previous government, presuming you hadn’t heard about it until yesterday?
Chalmers:
I don’t think about it that way. It’s a matter for the previous government to explain. As I said in response a couple of times up and down the hallway this morning, we’re focused on what’s in front of us, not what’s behind us.
Jack.
Journalist:
At the weekend Prime Minister Ishiba from Japan paid Mr Trump a visit in the White House. Narendra Modi is going tomorrow. That’s 2 out of the 4 – well, 2 out of the 3 Quad partners that have gone to the – Albanese will be the only one that hasn’t gone. When – like, I guess, how quickly do we need to move on this? Do we need the Prime Minister to go to, you know, the White House in the next few weeks?
Chalmers:
I think he’s shown a capacity to have that productive and positive conversation already. No doubt there’ll be more engagement. All of us will engage with our American counterparts in one way or another. But we shouldn’t sort of lightly dismiss the progress that was made yesterday in that conversation between the 2 leaders. President Trump has pointed out the very positive, mutually beneficial economic relationship that we have. He’s pointed out the ways that we are different to some of the other countries that he’s been focused on. And he said that he’s prepared to consider an exemption. That’s good progress. We don’t take any outcome for granted. We’re aware obviously of all this commentary from things that may or may not have been said almost a decade ago. But our focus is on what’s in front of us.
Last one.
Journalist:
On Rex, why should Australian taxpayers be bailing out a failing airline and buying or bailing out a failing airline? Why aren’t smaller players being given a chance to expand into the market and take up those flights to service regional Australia?
Chalmers:
A couple of things about that. First of all, our priority here is to make sure that people in regional communities can access affordable and reliable flights. That’s our priority. Our preference is for a private sale, and there’s a bidding process underway right now for when the administration period ends. And we’re prepared to support that bidding process, negotiating with potential bidders with conditions to see if we can make that private sale a reality. So that’s our preference.
Any responsible, considered, methodical government like ours has an obligation to consider all of the contingencies. We’ve said that our preference is a private sale. If that doesn’t happen for one reason or another then we’ll work through the other contingencies and fallbacks with the states and other stakeholders.