The Prime Minister's interview with Allison Langdon
- Written by Alison Langdon
ALLISON LANGDON: Prime Minister, nice to see you this morning. You reckon it's enough to get you re-elected?
PRIME MINISTER: This is about cost of living pressures that are real and that Australians are facing. And that's why they need the support now. And they've worked hard, just like the government has, to ensure that the Budget has improved by some $100 billion. And that's why last night we were able to meet that need on the cost of living pressures, particularly at the bowser, that Australian families and businesses right across the country are facing. It's caused by events well beyond our shores, the war in Ukraine. But this is a responsible measure because we've been able to grow the economy to support it. It's temporary, it's targeted and it delivers real relief. So it's like a shield for families at the moment, a shield against those pressures of rising costs of living, particularly at the bowser. So as we're coming out of this pandemic strongly, we won't have that momentum broken, we won't have people knocked back down by what we're seeing in the war in Europe. So this is necessary support. The cost of living pressures are real and we've taken our time to get the right package of measures to give the support, both now immediately at the bowser, it'll take a couple of weeks for that to flow through because at the petrol stations, they've already bought their fuel supplies over recent weeks, but also for pensioners and those who need those payments, those $250 payments will be coming through soon. And when people put their tax return in, an extra $420. That's just them keeping their own money, I want to stress. No one's getting a payment there. They're just paying less tax and they're keeping their own money, just like they're keeping their own money by having a lower excise and lower taxes on fuel. Australians need to keep more of their own money to ensure that they can continue to push through as a result of these very difficult cost of living pressures.
LANGDON: Well, with this Budget, are you addressing the cost of living or is it just the cost of winning?
PRIME MINISTER: No, it's about cost of living. In the same way when the pandemic hit and we did JobKeeper. It didn't have to be an election, there was a need. And there's a need because of what has happened with fuel prices. Because when the price of fuel goes up, the cost of food goes up and everything you've got to put on a truck and transport around the country, the cost of shipping goes up. All of this changes. And so as a result of that crisis worsening ...
LANGDON: But these fixed that you're talking about, these fixes, sorry, as you just pointed out, they are temporary. You've got these one-off payments and the timeframe on the fuel excise cut. So are you expecting fuel and grocery prices to be affordable in six months’ time when these relief runs out?
PRIME MINISTER: Well, as the Treasury papers show in the Budget, we are expecting the cost of fuel to drop over that six month period. We've done it for six months. In New Zealand they've done it for three. We believe it'll extend longer than that, and so we've done it for six months. And that's the best estimate that we have and that's when this support is needed and that's why it's being delivered now. But the Budget sets out billions in investments, particularly in jobs. I mean, the biggest reason why we've had $100 billion dollar improvement over the Budget period, and particularly more recently, is because we've got Australians in work. We've got Australians in work. So you've got, someone getting welfare turns into someone paying tax on a job. That's how you strengthen your Budget. And unemployment now at four per cent, youth unemployment now at one of its lowest levels that we've seen in many years with a nine in front of it. It's always been in double digit for almost the entire time over the last 20 years or so. And now a single digit unemployment rate for youth unemployment. Women's unemployment is at the lowest level since 1974. We've got that highest participation rate, that is people who are in the workforce, for women. And so our economy is strengthening and because we knew when to start spending and stop spending on JobKeeper. Labor would have spent $81 billion more. They criticised us for stopping JobKeeper, but we knew you had to do it temporarily. We did that, and that's what this is. It's another well-designed, responsible, targeted measure, and it's allowing Australians to keep more of what they earn to get through the challenges ahead, which are very immediate.
LANGDON: Look, it's been a very delicate balance, of course. You know, you want to be able to put money into people's pocket to be able to pay for things, and you've also got to keep an eye on inflation. So that's been a tricky thing for you to navigate with this one. And many things, what you presented last night does that. Nothing for rent relief, though. Why not?
PRIME MINISTER: It's about Australians getting into homes. The best way to support people who are renting a house is to help them buy a house. And over the last three years, we've got over 300,000 Australians directly into their own home and particularly single mums, where we are addressing the amount of deposit they need from 20 per cent …
LANGDON: I'm not talking about home ownership here, though, Prime Minister. I'm not talking about home ownership here, I'm talking about rental relief for the thousands and millions of people who are renting. And I think that for a lot of places like in regional Australia, rents have gone up about 18 to 20 per cent.
PRIME MINISTER: I know, but that's my point. People who are buying houses are renters. And ensuring that more renters can buy their own home and get the security of home ownership, this is one of the key focuses of this Budget and was one of the key pledges that I've delivered on since the last election. 300,000 people have directly got into their own home as a result of the measures we put in place since then, and we've gone further with those. We've gone further with those. We still provide the rental relief that's delivered through the rental assistance payments by the Commonwealth. We still provide the income support that is provided to people who are renting. This is why we're cutting taxes. This is why we've always cut taxes. You know, if you on the same tax rates that we inherited from the Labor Party and you earn about $90,000 a year, you would be paying $50 a week and more in tax. We've cut those taxes so people are paying less tax as a result of our tax cuts, not just over one Budget, but many Budgets. And that's what's enabling Australians to keep more of what they earn to meet the costs that they have and that they're facing.
LANGDON: Ok, you're now predicting that wage growth is going to outstrip inflation, but I mean, your track record on that forecast has been pretty shaky over the past decade. Why are you confident you've got it right this time?
PRIME MINISTER: Well, the assumptions that are made in Budgets are swings and roundabouts, but I'll tell you that the assumptions that have always worked under our Budgets is the revenue has always come in stronger than what we've anticipated. There's nothing in this Budget which is built on assuming that iron ore prices stay over $100, up around $120, $130 dollars now, forever. I mean, that's what the Labor Party did when they were in government. They assumed record iron ore prices would last forever. They spent money based on taxes like the mining tax, which never raised any money. We haven't done that in this Budget. We've been very conservative in our assumptions. And as the Reserve Bank Governor himself has said, wages are on the rise again. But the only way you get stronger wages is through a stronger economy. The government doesn't legislate to increase wages. If the Labor Party think there's a better way to raise wages, I look forward to hearing it on Thursday night. He's got to set out an alternative budget on Thursday night. He can't say I'll do one in September if he's elected. Australians want to know now. He's not a small target, he's a vacant space when it comes to an economic plan. And they've had three years to tell Australians what they're going to do. And the election is just around the corner, and he needs to get up on Thursday night and explain that. We have a plan, we have a clear plan and it's a plan that's working because I know Australians are working, at unemployment rates of four per cent and heading south, and wages heading north.
LANGDON: I tell you what, we are definitely in election mode. So we've had the Budget now. There's a bit of sting in your tail this morning. So the election, when are we looking?
PRIME MINISTER: Well, the election has always been due in the middle of May and I've been very consistent about, you know, we were elected to serve a term and we've served that term.
LANGDON: Come on Scott, we're ready, aren't we? We want it all over and done with, don't we?
PRIME MINISTER: Well, you know, we've got the Budget. We will take the Budget through the parliament this week, and it won't be long before we're going to those polls. And I'll tell you what, at that election, Australians will have a very important choice. A choice about who is best able to continue to keep our economy strong for a stronger future. Who can defend our country, who's been prepared to stand up, who has the clear plans, who is known, who was known at the end of the day. You know, I'm not pretending to be anyone else. You can't pretend to be someone else when you're Prime Minister, because when you got to make those hard decisions, you draw on that experience and everything you've believed in over the last 30 years. Because in the crisis, that's what counts. And that's what has enabled us as a government to stay strong, to keep our economy strong, and that means a stronger future. And this Budget delivers on that again. We've been delivering, we're going to keep delivering, with a plan that will ensure a stronger economy for the future. And that's what the election's about.
LANGDON: Prime Minister, one of your own slammed you last night, Senator Concetta Fierravanti-Wells basically saying that you're a bully. Your response to that?
PRIME MINISTER: Well, of course, I don't agree with that. And she's been similarly disappointed in the past with my predecessors. But there was 500 people who turned up from the Liberal Party on the weekend and made their choices about who they wanted to endorse for our Senate ticket in New South Wales. They chose Senator Payne, the Foreign Minister. They chose Senator Molan. I understand she's disappointed about that. And when people are disappointed, then they will, they will say things, and I understand that. And if there are real complaints that she'd like to make then I would encourage her to take those to the federal party and the state party, because we have processes to deal with those sorts of things, and I encourage her to follow those.
LANGDON: All right, I'll tell you what, it was pretty brutal from her last night. But overall a pretty positive response, I think, to your Budget. We appreciate your time this morning. Thank you, Prime Minister.
