Laura Jayes:
The Assistant Treasurer, Michael Sukkar, joins us live now. Michael Sukkar, good to see you, thanks for your time. Is the Government going to make a decision on the deeming rate this week?
Michael Sukkar:
Well Laura, as the Treasurer pointed out, these matters are being considered. The Social Services Minister, Anne Ruston, after the RBA announcement was made, has sought advice and that is being considered. The Treasurer has said that these things are being considered as well and look, let's not forget that deeming rates have been determined in this way. It's not just the RBA cash rate that is relevant for returns of these types. Obviously there's superannuation, there's managed funds, there's bank accounts. There's a whole range of factors that go into determining what rate you should impute to seniors of this type. We will consider it in an orderly fashion as the Treasurer has pointed out. We understand and we're mindful of the issues that are being raised by seniors and that's why we are considering them in this way.
Laura Jayes:
The fact that they haven't moved for four or five years, doesn't that show that perhaps there's something wrong with the process. Are you open to having the deeming rate set by an independent body?
Michael Sukkar:
Well Laura, let's complete the current review. The advice has been sought from the Department of Social Services. It's now with Minister Ruston and the Treasurer is also looking at it. Let's see what that says and see what the process determines but again, let's not forget, Laura, that this has been the way that Deeming Rates have been set for a very long time and obviously, and this is why we're very mindful of this issue, obviously in a low interest rate environment, there are more concerns around it. We absolutely understand that and that's why we're listening in the way that we are.
Laura Jayes:
So you seem like, because it's been set like this for quite some time, you don't seem to be suggesting that it should be set by an independent body. Is that a fair assessment?
Michael Sukkar:
Well what I'm suggesting, Laura, is that we consider the advice that's been sought by the Department, by the Minister and the Treasurer will look at it as well and I think once we do that process, we'll see if we can get to a position that can accommodate the various interest but I'm not going to foreshadow anything further than that today.
Laura Jayes:
Well given that there is a review underway, how urgently does this need to be addressed? This review, will it take weeks or will it take months?
Michael Sukkar:
Well Laura as I said, we consider all of these matters in an orderly fashion and that's been the hallmark of Josh Frydenberg's time as Treasurer, our Prime Minister's time as Prime Minister. We will always consider these things in an orderly fashion but again, I want to make clear, we are mindful of the issues, we are listening and as and when the ministers, both Anne Ruston and Josh Frydenberg have something to say, that will be the time at which those announcements are made.
Laura Jayes:
Bill Kelty this morning, a giant of the Labor movement of the Hawke and Keating era said this morning that the top marginal tax rate is too high. Is it?
Michael Sukkar:
Well Bill Kelty I think, was sending a pretty unsubtle message to the Labor party, the Labor party of 2019 under Anthony Albanese, which looks like really a continuation of the leadership of Bill Shorten which is this phoney class warfare position that they adopt on everything and I think he's sending them a very strong message that them putting all the obstacles in the way of our tax cuts last week were not what he would consider as old Labor values that he would consider in the Bob Hawke tradition. So I think it was really telling that he made that point. Obviously our tax plan provides immediate relief, $1,080 for singles, $2,160 for couples. We flatten tax rates in the medium term and we ensure in the long term that 94% of taxpayers don't pay more than 30c in the dollar. That's our plan. That is our plan to ensure that Australians are given all the reasons that they need to aspire to bigger and better things without the Government having a hand in their pocket. Bill Kelty I think is sending Labor a very, very strong message but to date, the Labor Party has not been listening to those sort of messages from many former Labor figures and I suspect that under Anthony Albanese, which is just a continuation of Bill Shorten's leadership, this phoney class warfare campaign will continue and they won't be listening to what Bill Kelty says.
Laura Jayes:
Is the top marginal tax rate too high, in your view?
Michael Sukkar:
Well no, Laura. In our view, the plan that we legislated last week that is the plan that we believe ensures that we have integrity in our tax system, a progressive tax system that ensures that the Government has the resources we need to provide the services that Australians need. But at the same time, ensuring we don't have a handbrake on aspiration, that we have a fair tax system – that is what we believe. Now, there are always good arguments, Laura, for reducing taxes. I think if you look at the form of our Government, we are always trying to examine ways of reducing taxes…interrupted.
Laura Jayes:
It is though, a little bit perverse. You have Bill Kelty and Craig Emerson a couples of weeks ago, saying that the top marginal tax rate is too high, but you're unwilling to agree with them.
Michael Sukkar:
Well I think Bill Kelty and Craig Emerson should go and have a chat to some of their people in the Labor Party because last week, they stood in the way and they were providing obstacles to taxpayers on much lower rates of tax than the top marginal tax rate where the Labor Party was trying to frustrate though. So if the Labor Party are uncomfortable with flattening tax rates that are currently sitting in the 30s, then how on earth would the Labor Party ever agree to something like that? So again, I think Bill Kelty, obviously he's a very passionate Labor man, he's trying to send them a very, very unsubtle message that their phoney class warfare campaign is not consistent with old-style Labor values. But again, I can't see Anthony Albanese changing anything because this seems to be just a continuation of the same phoney class war campaign that Bill Shorten ran.
Laura Jayes:
Is there ever a point in time where the Government would consider changing the top marginal tax rate or does the politics just not allow for it?
Michael Sukkar:
Well Laura look, we legislated the most significant personal income tax reductions last week, really in our lifetime. It is quite remarkable what we were able to achieve. Again, we had to rely on the cross bench because the Labor Party threw every obstacle at us because we believe that Australians can spend their money better than Government can. We believe in ensuring that aspiration should be enhanced. The Labor Party obviously believe something very, very different. So I think you will forgive me, Laura, for pausing on that quite significant achievement last week because we had to do it with the Labor Party fighting us every single step of the way.
Laura Jayes:
Perhaps a little presumptuous of you. Michael Sukkar, I appreciate you time this morning. We'll speak soon.
Michael Sukkar:
Thanks so much, Laura.