Jim Chalmers:
I’ve got a number of issues that I wanted to cover today, but to begin by acknowledging the statements that the Prime Minister has just made, and obviously we’ve seen statements by the Americans and the Iranians as well. This remains a perilous time in the Middle East and for the global economy and that’s why we have consistently been advocating for stabilisation and de‑escalation. We urge the parties to implement the ceasefire which was announced by President Trump today. We need to see an enduring ceasefire in the Middle East. We need this ceasefire to stick. That is in the interests of the region and it’s in the interests of the global economy as well, and the Prime Minister has made all of that clear in the last few minutes.
Regardless of what happens in the next day or 2 in the Middle East, it remains the case that there is a great deal of global economic uncertainty. We are seeing a global economy which is defined by unpredictability and volatility and uncertainty, and these will be the primary influences on the government and on our country and its economy as we make important decisions about how we manage the economy in uncertain times.
In this context, I welcome the opportunity to speak once again with my American counterpart, the US Treasury Secretary Scott Bessent tomorrow morning our time. This will be an opportunity to engage once again on issues which are central to this very important economic relationship between the United States and Australia. I expect the conversation to traverse issues like critical minerals, legislation before the US Congress, obviously trade and tariffs, but also this global economic uncertainty that we’re seeing around the world in the Middle East but also in Eastern Europe, also closer to home.
We do have very substantial concerns about the global economy, whether it’s the impact on oil prices of what we’re seeing in the Middle East, whether it’s the ongoing implications of Russian aggression in Ukraine, whether it’s the potential impact on global demand of these escalating trade tensions. The global economy is a dangerous place right now and that’s why one of our overriding economic goals is to make the Australian economy more resilient.
When it comes to oil prices, we’ve seen oil prices come up quite substantially over the course of this month. Remember the barrel price was about $82 at the start of the year, it got down to $62 at the start of this month, it got up to $79 at the start of this week and now it’s trading at around $69. This gives you a sense of the quite extraordinary volatility in the oil price and that obviously has implications for the global economy, for our own economy and also for the prices that Australians pay at the petrol bowser.
I have written today to the Chair of the ACCC to make sure that Australians are treated fairly at the bowser. We don’t want to see service stations do the wrong thing by Australian motorists. We want to make sure that the market is operating effectively when it comes to the petrol price and what’s happening with this volatility in the global oil price but we call on the service stations to do the right thing by their customers. We’ve empowered and asked the ACCC to use its monitoring powers to make sure that the servos are doing the right thing by Australian motorists. We don’t want to see this volatility in global oil prices lead to more than justifiable changes in the price that Australian motorists pay at the bowser, I’ve made that very clear with my instructions to the ACCC today.
Tomorrow we will get the monthly inflation data for May. That monthly figure is notoriously volatile and hard to predict but the very strong expectation is that we will see monthly inflation in the Reserve Bank’s target band once again. This will be a very substantial indication that we have got inflation down substantially and sustainably in our economy. This monthly inflation data is not as reliable as the quarterly figures but it’s an important indication of the progress that Australians have made together when it comes to the fight against inflation.
The monthly figure bounces around a bit. We may see that in the numbers tomorrow but regardless, we expect to see another month where inflation is within the Reserve Bank’s target band, that’s a good thing given the very high and rising inflation that we inherited 3 years ago when we came to office.
We’ve made a lot of progress together on inflation but I wanted to run through today the very substantial additional help that we will be providing Australians from the 1st of July. More help is on the way a week from today when it comes to cost‑of‑living help. We’ve made this progress on inflation together, though we know that the job is not done because people are still under pressure and that’s why there is more help on the way a week from today when 8 new measures come into effect from the 1st of July which is a week away now.
I wanted to briefly run through the 8 changes that will come into effect from next Tuesday. First of all, the national minimum wage and award wages will go up by 3 and a half per cent. That will benefit 2.9 million Australians on low and award wages.
Secondly, superannuation goes up to 12 per cent. We’re very proud to see the superannuation guarantee rise to 12 per cent. That will benefit 14 and a half million Australian employees, and it means tens of thousands of dollars extra in people’s super at retirement.
We’re also increasing the duration of paid parental leave from 22 to 24 weeks and we’ll be paying super on government‑paid parental leave. That is a very substantial change and we’re very proud of that as well. That’s the third big change that comes into effect from the 1st of July.
The fourth one is that we’ve extended the energy bill rebates from the 1st of July for another 6 months. That means another $150 of help for 10 million households and one million small businesses as well.
The fifth change from the 1st of July is that our $10,000 incentive payments for apprentices to top up their wages in housing construction will come into place as well, and that will help us build the homes that we need, recognising that we need the tradies, the builders, to build those 1.2 million homes.
The sixth change is our cheaper home batteries program kicks in from the 1st of July. That means that households and businesses could be eligible for around 30 per cent of the up‑front cost of installing a battery.
The seventh one is that we are increasing the amount people can earn before they have to start paying back their student debt. Subject to the passage of that legislation, that change will be effective in the middle of this year.
The eighth change is that we’re seeing an increase to the social security payments with the indexation and lifting the asset limits for payments like family payments. And this will benefit more than 2.4 million people.
So there are 8 different ways that we are helping Australians with the cost of living. We’re getting inflation down, we’re getting on top of inflation in welcome and encouraging ways, we’re still helping with the cost of living, but because we’re making progress on inflation and because we’re helping with the cost of living, that also allows for an even bigger focus on our 3 priority areas this term which are productivity, budget sustainability and resilience in the face of global economic uncertainty and that’s what the roundtable is all about that I’ll be convening next month in Canberra.
I’ve had some very productive conversations with businesses and unions already. Today at their invitation I briefed and then had a good conversation with the Transurban board, meeting here in Brisbane. I’ll be meeting with the Business Council of Australia again today after this press conference. I’ve had good engagement with the unions and others to see what progress we can make together when it comes to reforming our economy, making it more productive, making our budget more sustainable and making our economy more resilient at the same time as well.
I’m in the process of finalising the invitation list for the Economic Reform Roundtable in August. But the guidance is already very clear – we want people to come with an eye to the national interest. We want people to understand and engage and propose trade‑offs, and we want people to come with specific ideas, not just problem identification. If people do that, I’m confident that we will make progress at the Economic Reform Roundtable in August. People will be in the room able to contribute, but also there’ll be opportunities for people outside the room to make a contribution as well. I’ve been really heartened and encouraged by the amount of interest that people have shown already in the Economic Reform Roundtable, and I think that augers well for the next steps in the already very substantial program of economic progress and reform that we have undertaken.
Journalist:
Just on that reform roundtable, will the Opposition have a place, given they’ve asked to be involved?
Chalmers:
I’ve made it clear to Ted O’Brien, the Shadow Treasurer, this morning that there is an invitation for him to the economic roundtable in August. I’ve provided that invitation in good faith. I think it would be a good thing for the country to have the Shadow Treasurer engaged at the Economic Reform Roundtable. I think it would give us a better chance of making the kind of progress that we desperately need to see on reform and in our economy more broadly. So I’ve issued an invitation to Ted O’Brien. I’ve had a brief exchange with him earlier this morning about that. I hope that he accepts that invitation. It’s certainly been offered in good faith.
This is a big chance for Australians either side of the parliament, for Australians in business, in unions, in the community sector, the community more broadly to engage where we can in a non‑partisan way in the interests of our people and their economy. And so I hope Ted O’Brien accepts that invitation. We are still finalising all of the other invitations, but I think there’s heightened public interest in whether the Opposition has been invited, and that’s why we’ve got the question from you, Kate and I want to make it clear today we have offered that invitation to the Shadow Treasurer, and we hope that he accepts it.
Journalist:
Treasurer, I want to ask you a question about GST. How serious do you think the states are about wanting to reform the GST?
Chalmers:
I think it remains to be seen. From time to time the states have made that proposal, not just the current batch of premiers and treasurers, but from time to time we’ve seen that idea pitched up. What I’ve tried to do, what I said at the National Press Club last week – I think everybody knows and understands the comments that I’ve made on the GST in the past. I’m not walking away from those comments but I’m not trying to artificially limit the contribution that people might want to make in and around the Economic Reform Roundtable in August.
I think inevitably there is, from time to time, tension between the Commonwealth and the states about Commonwealth funding. Every state and territory wants more funding from the Commonwealth. From time to time, they pitch up ideas like this one. I like to engage with the states and territories in good faith from both sides of the political equation and I hope that at the Economic Reform Roundtable, however we work out the best way to involve the states in this process – whether inside or outside the room – I hope that people come to this in a constructive way, and I suspect they will.
Journalist:
And what would be the prerequisites for you to seriously consider any reforms in this space?
Chalmers:
Well, I’ve made it clear that the major prerequisites for the reform roundtable are first of all to try and take a national view and not just a sectoral view or a state or territory view but to try and see the whole national economic interests, as governments are invited to do. I’ve asked people to make sure that where they are proposing a change, whether it’s in tax or productivity in or in other areas around resilience, that that’s done recognising the trade‑offs, particularly the fiscal trade‑offs. We’ve got to make the budget more sustainable, not less sustainable, so that’s an important guiding principle. And thirdly, to make sure that people come with specific and realistic ideas and that they try and build consensus around those ideas. And so that’s the guidance we’ve provided to business, to unions, to the community sector, to the states and territories, to everyone who’s shown an interest. And that will apply to everyone, not just the government.
Journalist:
Do you – and I know you made the opening statements about Israel and Iran, but do you have faith that Donald Trump’s declaration there will be a ceasefire will actually eventuate?
Chalmers:
Look, obviously I’ve seen the more recent comments from the Iranians – I think it was the Foreign Minister – in relation to the ceasefire. I think the region and the world desperately needs this ceasefire to be implemented and we need it to stick. The best way out of this perilous time in the Middle East is for people to come to the table to engage in dialogue and diplomacy as the Prime Minister said a few minutes ago and that’s what we want to see.
Journalist:
And do you – or are you able to update us at all on efforts to assist Australians leaving Iran or Israel or plans for broader updates to travel advice?
Chalmers:
Can I say that Penny Wong’s colleagues in the Department of Foreign Affairs and Trade are outstanding people working around the clock to try and keep our people safe. There are thousands of Australians who have registered to come out of Iran or Israel and DFAT is working around the clock to make that possible. There have been some people that have been able to be extracted from this dangerous part of the world and the assurance that we give to everyone else – and I’ve been part of some of these but not all of these conversations and I’ve seen for myself the very hard and tireless work being done by DFAT to get people out – they will continue to do the very best they can. We understand that there’s a lot of concern, people in those dangerous places and their family members around the world, including here in Australia, and we’ll do everything that we can to keep them safe.
Journalist:
And can I just ask one more about the eSafety Commissioner’s found children are experiencing harm more often on YouTube than any other platform. Would it undermine the purpose of the ban to leave it out?
Chalmers:
I’ll leave some of those questions in the very capable hands of Anika Wells. Obviously our objective here is to keep young people safe online in particular. We’ll work through all of those issues to make sure that we’ve got the most effective regime. We know that people have got views about what’s included and what’s excluded. I think that’s natural when you’re proposing a change of this magnitude. We pay close attention to the sorts of data that you’re referring to and we will finalise the best regime that we can.
We shouldn’t lose sight of the major objective here. A lot of us – you don’t have to be a parent but certainly parents around Australia, including this one speaking right now – are very concerned about the safety of young Australians online. We’re doing what we can to help out. We’ll take into consideration all of those kinds of views and that kind of data like the one you’re asking me about.
Thanks very much.