MILNE:
Welcome Mr Costello.
TREASURER:
Thanks Glenn.
MILNE:
Surprise tax cuts. But the Opposition says that at $4 a week it's actually the smallest tax cut in Australian history.
TREASURER:
Well Glenn we had a situation where we funded a war in Iraq, we increased security, we funded the most extensive drought in Australian history and the Budget was still in surplus. And I thought that it was important to give tax relief out of part of that surplus. Now we will still continue to pay off Labor's debt but we will pay off $2.2 billion and $2.4 billion will be returned direct to the taxpayers.
MILNE:
But Labor also says that by the time families pay for more to go to the doctor and they start having to save for their kids increased HECS charges that those tax cuts will be eroded very quickly.
TREASURER:
Well, every Labor Government in the country is increasing tax. If you want to see what Labor does, not what it says, look at each of the State Budgets. So, I think we can put them to one side. Australia would be one of the few countries in the world which has got a Budget which is in surplus, which has funded its commitments, and is cutting tax. America is cutting taxes, they have got a deep deficit. Britain is increasing taxes and they have also got a deficit. Australia has a surplus and it is cutting taxes which would make us one of the few if not the only country in the world to be in a position to do that. And I think it is important to share affordable tax cuts with the taxpayer.
MILNE:
Okay, Medicare reforms and higher education reforms, central to the Budget but they look like they are both going to be blocked in the Senate. Will you negotiate?
TREASURER:
No. We will put our measures up to the Senate. We think it is important that a Government be allowed to govern. And Labor has not been elected to Government and yet they want to try and destroy these Budgets. So we will argue with the minor parties, I think these days they are more responsible than the Labor Party. So we will negotiate with them and we will seek to have our Budget enacted into law.
MILNE:
Your last Budget?
TREASURER:
Well, it is my eighth Budget and I have just finished it. And I want to make sure that we get it through the Senate.
MILNE:
Mr Costello, thanks for your time.
TREASURER:
Thanks very much Glenn.