Topics: Inflation; Federal Budget 2023; cost-of-living

E&OE

EMMA REBELLATO:

Well, this week's Reserve Bank decision is putting pressure on households and pressure on the government to deliver cost of living relief in next week's Budget. Shadow Treasurer Angus Taylor joins us now from Sydney. Shadow Treasurer, good morning to you.

ANGUS TAYLOR:

Good morning, Emma and thanks for having me.

EMMA REBELLATO:

Well, you described Tuesday's rate hike as a wakeup call for the government. What would you have been doing differently if you were in charge of the books?

ANGUS TAYLOR:

A clear plan for bringing down inflation is what we need, Emma. It is clear that Australia is now running world-leading inflation. We don't want to lead the world in this way. 6.6 per cent core inflation; that's higher than the US, the UK, Canada, Europe and the whole of the G7. We're at the worst end of that and that means the Reserve Bank puts up interest rates and we're all paying a very high price for this. The truth of the matter is inflation is running, raging at these levels and it is a big tax on everything we buy. That is hurting Australians in a very significant way and of course, it leads to higher interest rates rising, which is exactly what we saw this week.

EMMA REBELLATO:

Okay. Well, you said we need a clear plan. What plan is that?

ANGUS TAYLOR:

Yeah, so first and foremost, we need to see budget surpluses, budget balance over the next four years. The best way to take the heat off inflation is for the government to manage its spending and that is the most important way to do that. If the government can't manage its spending, households and businesses have to do it for them and that's very, very painful. We're seeing a lot of that now. We need a Budget that doesn't raise taxes on Australians. Where hardworking Australians need to be able to get on and make an income at a tough time, where they have got to pay much higher mortgages, $20,000 a year additional for a typical mortgage, this is a huge number, a huge imposition. So, taking that pressure off inflation, making sure we're not adding to taxes and delivering on the promises that Labor made; cheaper mortgages, lower electricity prices, these are the things that Australians expected and deserve.

EMMA REBELLATO:

Well, if the government has to rein in spending, where would you like to see these cuts being made? Where do you think there's fat to trim?

ANGUS TAYLOR:

Well, all they have to do is make sure the economy grows faster than their spending. It's a very simple formula, we did it from 2013 to 2019 and it's a straightforward approach. It was $45 billion of spending that Labor has committed to in recent months that we've said is not appropriate for now. They added $115 billion of spending in the last budget, and that is spending that all Australians will pay for and are paying for with higher inflation. You know, this is not inflation coming out of the Ukraine. It's not coming out of Russia. This is coming out of Canberra. This is Labor’s inflation, Emma.

EMMA REBELLATO:

Well, as you said, Australians are hurting. We all know that cost of living is a major issue for everyone. The government's yet to release its full details at the cost of relief package. Where would you like to see support go? Where should it be going in your in your mind?

ANGUS TAYLOR:

Containing inflation. I mean, when you've got inflation raging, everyone's hurting, interest rates go up. It causes pain across the board and the best way to deal with that is to take pressure off inflation, as I say. And that's why we want to see a responsible budget, budget surpluses making sure spending is being managed, every dollar of taxpayer spending and money is being spent appropriately, well-targeted and bringing pressure off inflation and we're not seeing that. I mean, it is clear now, Labor's kept talking a big game about how they're doing all the right things, but we have world-beating inflation. Australia loves to be a world-beater, but not in this way, Emma.

EMMA REBELLATO:

Well, it's one thing to be tackling inflation but it's another thing to be helping people right now because people are hurting right now. So, does that mean you don't think that people should be offered relief or the JobSeeker payments, for instance, should be going up?

ANGUS TAYLOR:

No, I'm just saying that the best form of relief is lower inflation. Look, you'll have a lot of people out there watching right now who have seen pay rises in the last little while. That's a good thing, we want to see to see higher wages, but they're not feeling better off and the reason that's the case here is because inflation is raging. So, this has to be the number one priority for the government. Look, Jim Chalmers keeps talking a big game on restraint, but we're not seeing it. We saw $115 billion of extra spending at the last Budget. We need a budget that's responsible, that contains spending and most of all contains the inflationary pressures, which are hurting Australians so much and which are leading to higher interest rates, which is causing so much pain in the mortgage belt areas and anyone with a mortgage right across Australia.

EMMA REBELLATO:

All eyes will be on Tuesday, this Federal Budget, Shadow Treasurer Angus Taylor, thank you.

ANGUS TAYLOR:

Good on you, thanks Emma.

ENDS