Topics: Interest rates on hold, Stage three tax cuts 

E&OE   

GREG JENNETT: 

Shadow Treasurer Angus Taylor joins us here in the studio. Angus, welcome back. A very quick one on the RBA, Michele Bullock did say in her lengthy media conference, that in effect, she's rather sanguine about stage three tax cuts, they won't be inflationary in her view. That would satisfy you, and did that inform - does that outlook inform the decision that you made today? 

ANGUS TAYLOR: 

I look, I think the much bigger issue for us is what's already been inflationary. What's the inflationary pulse that's already running through the economy. $209 billion of extra spending from Labor since they came to power. There's no way that's not going to be adding to inflation. And we've seen of course, 9.6% inflation - increase in prices, since Labor came to power. So the real question is, how do you reverse that. There's no plan to reverse the 12 interest rate increases, the huge hikes in prices - 9.6% increase in prices, and the 27% increase in personal income taxes that have been paid in the last 18 months. And that's why Australians are not only feeling poorer than they were 18 months ago, they are! 

GREG JENNETT:  

Alright, let's take you to what flows from the party room decision today. The Prime Minister this morning seemed disappointed that you didn't either oppose or rollback, to use his words, what he had put forward. Along the way, though, you've called this a lie, the mother of all broken promises, a tax grab, anti aspirational and class welfare, yet, you're totally on board to support it. Where are the convictions on this? 

ANGUS TAYLOR: 

Well, you're conflating two things. We strongly support the stage three tax cuts, and we continue to. Labor has ruined...[inaudible] Labor has conflated that with the second piece, which is having trashed the economy, because that's what's happened with absolutely disastrous reduction in people's standards of living completely unprecedented in my lifetime. 8.6% in 18 months, something couldn't have dreamed of such a smashing of people's purchasing power of their incomes. And we understand the need to do what is possible to help. Now as an Opposition, we don't get to formulate the policy, we get to respond to it. So we're saying fair enough, given the disaster that's been imposed by Labor, that's about all that's there. By the way, it won't go anywhere near addressing the huge reduction in disposable incomes that we've seen. Well, we're not going to oppose that but we continue to take the view that tax reform is required. Bracket creep is insidious, it's the thief in the night, and Labor is banking on bracket creep for their budget in the future. They  have published a $28 billion grab through bracket creep in the coming months. And the Prime Minister himself showed he doesn't even understand it in question time today. 

GREG JENNETT: 

Let's talk about what does lie ahead prospectively for the Coalition as you set this policy to take to the election because soon enough, this revamp by the government will pass the parliament. You've said bracket creep, Jane Hume has said lower simpler and fairer, you've said in line with the principles of stage three, will they include tax cuts for all? Your Coalition policy that you'll take to the election.  

ANGUS TAYLOR: 

Greg, you have an absolutely wonderful program. But I'm not going to announce our election policies on this program today. What I will say is we do believe in rewarding hardworking Australians who want to get ahead, we do believe that when you have a strong economy, it's good for everybody. And that tax reform, like the stage three tax cuts, gives you a strong, low inflation economy. And that's why we will take forward strong tax reforms to the next election, as we formulated strong tax reforms through stages one, two and three, we always forget about one and two. And Australians are benefiting enormously from the stage one and two tax cuts, which we put into place when we were in government. 

GREG JENNETT: 

Will future moves entail the flattening of the tax scales in some way? Even if it's not removing 37 rate, a general flattening? 

ANGUS TAYLOR: 

I mean, if you want to get rid of bracket creep, there's a number of ways to do it. You can change the tax thresholds, or you can flatten the tax rates. I mean, they're the two pathways. So of course, we'll consider that. But look what we've got... 

GREG JENNETT: 

Will you be committed to at least one of those obviously... 

ANGUS TAYLOR: 

Well, we're committed to dealing with bracket creep, rewarding aspiration, rewarding hard work, strengthening the economy, putting downward pressure on inflation. That's what good economic management is. And that's what we've failed to see in the last 18 months. 

GREG JENNETT: 

All right, Angus Taylor, I'm being told you do have urgent commitments elsewhere. I had plenty more left to ask by the way, but that simply means we'll be getting your back and running through tax policy as it evolves within the Coalition. Thanks for joining us once again. 

ENDS.