Interview with Georgie Tunny, Hamish Macdonald, Nick Cody and Dilruk Jayasinha, The Project, Channel 10
GEORGIE TUNNY:
Treasurer Jim Chalmers joins us now. Treasurer, we're almost $13 billion better off than expected. So many Australians are struggling right now. Why couldn't you find any cost‑of‑living relief?
JIM CHALMERS:
Well, first of all, we are rolling out cost‑of‑living relief at the moment. We budgeted for that in May and we'll consider it again in the next May budget, taking into consideration the economic conditions and the budget pressures at the time, but we are rolling out some substantial cost‑of‑living relief. But really, the overall objective of the budget update today was to get the budget in much better nick, because the biggest challenge we have in our economy is inflation. One of the ways that we can put downward pressure on inflation is to run a really tight ship when it comes to the budget – not at the expense of that cost‑of‑living help, not at the expense of investing in the future of the economy, but making sure that when the budget is in much better nick, we're not adding to this inflationary problem that we've got.
HAMISH MACDONALD:
You're making a very clear justification there for not giving more help, and I know that you know a lot of people really need that help right now, and yet, you're holding firm to this promise that someone else made under very different circumstances to people on hundreds of thousands of dollars, the stage three tax cuts. We've heard a thousand times the reason why you're sticking to them so we don't need to hear that part of it again, but can you see why for many people copping the impacts of inflation – sending all of that money back out into the economy when that comes in doesn't seem to make sense right now?
CHALMERS:
Well, first of all, Hamish, I do understand that those tax cuts are contested and that people have a view about them and I welcome people's feedback about all of our policies and all elements of the budget, and I mean that very genuinely. Those tax cuts are legislated to come in in about six or seven months’ time and what we've been able to do in the interim is find a more effective way to provide more help to people on low and middle incomes. So, if you look at those ten different ways that we're trying to ease the cost‑of‑living pressures that people are facing – you look at that $23 billion package – a lot of that is targeted to people on low and middle incomes. What we've been able to do there is to make sure that we are helping people who need it the most, the people who are doing it toughest, because we do acknowledge that these are difficult times for a lot of people. We do more than acknowledge that – we act on it. And part of that is making sure that we can provide this cost‑of‑living relief at the same time as we get the budget in much better nick.
MACDONALD:
Sure, I'm not denying those steps that you are taking, but you're going to stick with this decision that will mean that an extra $20 billion in the first year goes back into the economy through these tax cuts. That will be inflationary, won't it?
CHALMERS:
Well, because these tax cuts have been legislated for so long, then any impact on the economy has already been factored into the way that the Reserve Bank, for example, when they make decisions about interest rates, they've already factored it into their forecasts and they're already factored into our Treasury forecasts.
MACDONALD:
So, the figures that were released today around inflation tracking down over the next few years, that takes this into account you're saying, therefore it's justified?
CHALMERS:
Well, it does take it into account. And certainly the Reserve Bank, certainly the Treasury, takes into consideration these tax cuts which were legislated some years ago.
MACDONALD:
Sure.
CHALMERS:
My job really is to recognise that people have got a range of views about those tax cuts, but more than that, it’s to make sure if you look right across our budget, that we're helping the most vulnerable people – and we are.
NICK CODY:
Now, by any measure, it's been a disastrous few weeks for the government. You've gone from leading the Opposition, 56‑44 in the polls to 50‑50. Are you staring down the barrel of being a one-term government?
CHALMERS:
I'll leave the political analysis to others. My job really, as the Treasurer, is to try and take the right decisions for the right reasons. I think governments get into strife when they ride the ups and downs of the news polls and opinion polls from fortnight or month‑to‑month. That's when governments get into trouble, when they've got that near‑sighted focus. We don't have that near‑sighted focus. We're taking the right decisions for the right reasons. Sometimes they'll be popular, sometimes they won't be but it's important that we do what we think is right and that's what we're doing when it comes to this mid-year budget update.
DILRUK JAYASINHA:
Before we let you go, I'm here for the big questions. What are you getting Albo for Christmas?
CHALMERS:
I was hoping I could just put my name on the card of whatever you're getting for him because I've left my run a bit late is the answer to that.
JAYASINHA:
He's on my naughty list, so I'm not sure if I'm getting him anything.
MACDONALD:
Not sure if he's getting one, does that happen? Does Albo give you a present? Is that how it works? Do you get a present from your opposite number?
CHALMERS:
From my opposite number? No. A lot of Christmas cards get sent around, including from the Opposition. And I got a lovely one from Albo as well. So, a lot of Christmas cards. There are a few suck‑ups that get the Prime Minister presents, I won't name them. I'm not one of those, but there are a few. They know who they are and they're probably watching.
MACDONALD:
Name some names, we want to know.
CODY:
If my mate found 13 billion, I'd suck up as well.
CHALMERS:
That's right. I got him a budget in much better nick for Christmas.
TUNNY:
Treasurer, thanks for your time.
CHALMERS:
Thanks for your time. All the best. Merry Christmas.
