MICHAEL ROWLAND
Assistant Treasurer Michael Sukkar joins us now from Canberra, good morning to you.
MICHAEL SUKKAR
Good morning, Michael. Good to be with you.
MICHAEL ROWLAND
Thanks for joining us. This is clearly a big win for the Government.
MICHAEL SUKKAR
Well Michael, we'll be putting forward our full tax plan today, the tax plan we took to the election, the tax plan that was endorsed by Australians just six weeks ago. I don't think there'll be any celebrations until it passes the Senate but we'll be working assiduously between now and then to make sure we can deliver on the plan that we took to the election.
MICHAEL ROWLAND
Okay, can you confirm Jacqui Lambie is on board?
MICHAEL SUKKAR
Michael, I'm a member of the House of Reps, and the Senate and the negotiations with the crossbench, are something that's being led by Mathias Cormann, so I'll be watching closely as you will and as will many other Australians who are very keen to see their tax refunds flowing from next week and I'll be waiting like you to see what the outcome of those votes are. We're optimistic, but you can't count on anything until the vote is taken.
MICHAEL ROWLAND
As you know, Jacqui Lambie has been pushing for more assistance on social housing in Tasmania. She's even called for the Federal Government to wipe Tasmania's $157 million social housing debt, you're the Housing Minister as well, has she got a valid claim there?
MICHAEL SUKKAR
Well Michael, I visited Hobart just a few weeks ago to attend a housing and homelessness forum shortly after I was made the Housing Minister to hear about the issues. I've been engaging since then with the State Government and many other stakeholders, to look at what we can do to improve housing in and around Hobart. There's obviously a whole group of people who are working very, very hard in Tasmania to get the best outcomes they can. We've said that we're always here to certainly have an open mind on how we can assist and we've really been doing that for the last few weeks.
MICHAEL ROWLAND
Is the Government receptive though, to her requests for more social housing money?
MICHAEL SUKKAR
Well as I've been on the record as saying over the last few weeks, we are very keen, and have been keen, to work with the Tasmanian State Government on how we can assist with them. As far as discussions between Senator Lambie and Mathias Cormann or Josh Frydenberg, I haven't been a part of those. But this is something that we, as I've said, have an open mind on any way that we can assist. There's a range of things that you can do in the housing space, whether it's assisting in community housing, assisting state governments with immediate responses to homelessness. We've done a lot of that, partially through our Hobart City deal, partially through our national housing and homelessness agreement. Those are discussions I've been having over many weeks, and we're always, as a Federal Government, keen to hear about how we can optimally assist state governments in delivering those housing and homelessness services.
MICHAEL ROWLAND
You're a member of the Government's economic leadership team, when is the Government going to start listening to Reserve Bank Governor Philip Lowe and do more in terms of the budget, to help revive this economy?
MICHAEL SUKKAR
Well I don't want to verbal the Reserve Bank Governor but he signalled very clearly yesterday, I think, to the Labor party and others, of the importance of our tax cuts. The tax cuts that we took to the election, the tax cuts that Australians endorsed just six weeks ago. Labor appear to have been putting every obstacle in the way they possibly can, to frustrate what was a plan, a very clear tax plan that we took to the election. We want up to $1080 to be hitting people's tax return refunds as soon as possible. $2,160 for families and I think the Reserve Bank Governor was sending a not so subtle message perhaps, that the importance of those short term tax cuts are crucial not just for the individuals who are, I'm sure, welcoming the $1,080 or $2,160 per household but just the confidence and the stimulus that that will provide the economy as well.
MICHAEL ROWLAND
He's aware of the tax cuts but he's also calling on the Federal Government to do more in terms of fast tracking infrastructure spending and using every device available to you to help restart this economy. So when is the Government going to start to act on that? Taking into account, he knows about the tax cuts, they're coming, he wants more.
MICHAEL SUKKAR
Well Michael, again, I don't think anyone should be verballing the Reserve Bank Governor. I think if you look at every decision that we've taken since the budget and in the budget, everything we do is focussed on ensuring that we put the Australian economy on the best footing possible. We said very clearly into the election, that yes, there are international headwinds but here is the plan to ensure continued economic growth, continued prosperity for Australians. That plan was
overwhelmingly endorsed by the Australian people and again, if you look at the infrastructure pipeline just to use that example that you've raised, Michael, it is the single best infrastructure funding pipeline of a federal government in history. So of course, there are always opportunities for the Federal Government to look at additional things we can do and the economy is a dynamic beast… interrupted.
MICHAEL ROWLAND
Excuse the interruption. Your Liberal Party colleague, the NSW Treasurer Dominic Perrottet, is this morning calling for the fast tracking of Federal Government spending on infrastructure in New South Wales. Will you act on that request?
MICHAEL SUKKAR
Well Michael, we are fast tracking the single biggest infrastructure spend of a federal government in history. We're not resting on our laurels. We are working very, very hard to make sure that those infrastructure plans are delivered as soon as we possibly can. And again, I think the Reserve Bank Governor's comments just highlight why the plan we took to the election was endorsed by the Australian people. Because yes, it has the short term relief for taxpayers, short term stimulus for the economy in the form of tax cuts, but also that longer term thinking about structural reform of the income tax system as well as a federal government that says, yes, we're willing to do a lot of the heavy lifting when it comes to funding crucial infrastructure that improves the productive capacity of the economy as well as making people's lives easier as they're trying to get around their cities or regions.
MICHAEL ROWLAND
To another aspect of your portfolio, you're asking financial regulators to ease lending restrictions on the major banks, restrictions that started to be certainly felt after the shocking findings of the banking royal commission. Are you expecting to win any brownie points, Michael Sukkar, by going into bat for the major banks?
MICHAEL SUKKAR
Well I don't go into bat for major banks at all, Michael. I go into bat for first home buyers who want to get a loan to buy their first home. I'm going into bat for people who want to get financed to be able to refinance and perhaps put an extension on their home. That's who I'm batting for. If you can't get the finance you need to buy your first home, then you're locked out of the housing market. So quite the contrary, Michael, I'm batting for first home buyers, I'm batting for everyday Australians because as you know, unless you're an extraordinarily wealthy person, you can't get on the property ladder unless you're able to get finance, typically in the Australian market, from a big bank. So they're who I'm fighting for…interrupted.
MICHAEL ROWLAND
Would you like those lending restrictions on the big banks eased?
MICHAEL SUKKAR
Well I think there is a good case to be made for ensuring that, yes, we have prudent buffers in place whenever we're assessing finance and APRA and ASIC have done a fantastic job in ensuring the integrity of our banking system. But clearly, I think in an environment of lower interest rates and in an environment where there are some green shoots in the housing market, I think there could be some opportunities to make sure that credit can more easily flow because again, Michael, it's not about the banks. This is about a young couple or an individual who's trying to get finance, trying to get a loan, to buy their first home. They're the people that are squarely in my sights.
MICHAEL ROWLAND
Okay, lots going on this morning, appreciate you joining us. Michael Sukkar, Assistant Treasurer, Thank You.
MICHAEL SUKKAR
Thanks, Michael.