Topics: 2025 Federal Budget

 

E&OE

 

MARK LEVY: I've got the Shadow Treasurer on the line with me right now, Mr Taylor, good morning to you here. Mr Taylor, you're there. Good morning to you.

 

ANGUS TAYLOR: Yeah. I got you. I got you. Loud and clear.

 

MARK LEVY: Firstly, your thoughts on the budget that was handed down last night?

 

ANGUS TAYLOR: Well, it's a budget for the next five weeks, not the next five years and beyond. And we needed a budget to restore Australia's standard of living, to restore hope, to reestablish fiscal integrity and we got none of that. What we got is a cruel hoax, 70 cents a day in a year's time when we've got families in Western Sydney who have had to find $50,000 more than they expected to in the last two and a half years since Labor has been in power. This is not responsible economic management. There's red ink as far as the eye can see, and not just, of course, in the government’s budget, but in household budgets, and that's where the real pain is, and there's nothing in this budget that's going to fix that situation in any sustainable way.

 

MARK LEVY: Where do you stand on these tax cuts that were announced by the Treasurer, Mr Taylor?

 

ANGUS TAYLOR: Well, you know what? They're an election bribe, not a tax cut. They are a cruel hoax on the Australian people, where what we really need is an economy that works for hardworking Australians. We've seen the biggest collapse in our standard of living since the records began actually, in the 1950s. Worse than any of our peer countries across the world and what we get from Labor is the answer is 70 cents a day in a year's time. I mean, seriously, Mark, what can you buy with 70 cents? I mean, not much, a few lollies maybe? I don't know, but the truth is that Labor has failed us on the economy. The answer to this is strong economic management. That means beating inflation, boosting growth, fixing our housing supply, balancing housing with immigration, delivering affordable, reliable energy. We know how to do these things. It's getting back to basics, to get back on track, but you won't get that under Labor.

 

MARK LEVY: Just on the tax cuts, and you're obviously not going to give too much away, but I'll ask you the question anyway, what sort of tax relief can we expect from a Coalition Government if you are to win the election?

 

ANGUS TAYLOR: Well, what we need is standard of living relief, cost of living relief. We need a genuine underlying a solution to the problem rather than just another band aid on a bullet wound, and that that will continue to be our focus.

 

MARK LEVY: Can we expect tax cuts from Mr Dutton tomorrow night?

 

ANGUS TAYLOR: Well, what you will get from Mr Dutton tomorrow night is dealing with the underlying problems here, delivering affordable, reliable energy. We need to get more natural gas into our energy system. So Australian gas working for Australians.

 

MARK LEVY: So no tax cuts?

 

ANGUS TAYLOR: We need to balance immigration with our housing supply, Mark and on tax, the best way to make sure people don't pay more tax is to beat inflation because we've seen the average Australian pay $3,500 more in personal income tax despite the so called ‘tax cuts’. Well, these aren't real tax cuts, let's be clear, because people are paying more tax because inflation has been too high under Labor.

 

MARK LEVY: I think where most Australians are this morning, and certainly I am, is, you know, Labor's out there saying, 'oh, tax cuts, tax cuts', $5 a week, or whatever it ends up being, this cup of coffee from July of next year. So at the moment, Australians are thinking to themselves, okay, that's Labor's plan, well what's the Coalition going to come to the table with? Are you prepared to make it easier through tax cuts?

 

ANGUS TAYLOR: Well, let’s be clear, it's not government handing out money and this is a handout, not a tax cut. It's the bottom tax bracket, it won't change, it's not tax reform, it's not going to change any incentives or behaviours, which is what tax reform is all about. So this is not a solution that is going to provide any sustainable benefit to our economy or strengthen our economy. The answer is strong economic management, it always has been. When we’ve run into trouble with our economy in the past, the answer has always been strong economic management. That means delivering affordable, reliable energy, that means beating inflation. It means fixing our housing supply. It means stopping the immigration that's out of control in this country – up again in this budget, we're approaching 2 million extra people in just five years, and the forecasts keep going up. Getting those fundamentals right is the answer, and if we get those fundamentals right, people will be better off. There will be room in the budget for sustainable tax cuts that really make a difference right now, we got red ink as far as the eye can see, from a Treasurer who lost control of the budget, he's lost control of immigration, and Australians are paying a very, very high price for two and a half years of bad Labor Government.

 

MARK LEVY: Well the Government's about to rush through the tax cuts in Parliament. So to be clear, and I'll try one more time. The Coalition will be voting against it?

 

ANGUS TAYLOR: There is a better way, and we will focus on that better way which ensures that there's a sustainable improvement in people's standard of Living. Labor’s own plan that came out in the budget last night, said our standard of living won't get back to where it was when we were in government, when we were in government, back two and a half or three years ago. We're not going to get back to there until the end of the decade. This will be a lost decade for Australians, and let me tell you, 70 cents a day starting in over a year's time, ain't going to fix that problem.

 

MARK LEVY: Alright let's move away from tax. You mentioned strong economic management. You've been meeting the government policy for policy over the last several months, Medicare, the PBS, aren't you also getting into a spending trap that will ultimately lead us into a decade of debt as well, Mr Taylor?

 

ANGUS TAYLOR: Absolutely not. I mean, we've opposed over $100 billion of bad Labor spending and tens of thouands of kilometres of power lines Labor wants to build because they won't accept zero emissions nuclear power stations to replace our current coal power stations, and that's why you have to build the tens of thousands of kilometres of power lines, and that's why you have to spend more money. Housing policies that aren't delivering any houses. They set a target of 1.2 million houses, they'll be lucky to get to 800,000 meanwhile, immigration is through the roof, and they've lost control, so there's spending there that we think is inappropriate for the time, so called manufacturing policies that aren't delivering any manufacturing. I mean, under that program, the first investment they made was in a quantum computing company based out of California. I mean, seriously, that's not manufacturing Australia. Give me a break. So there's no shortage of waste here. We all saw their referendum, adding 41,000 Canberra-based public servants is now the number. It keeps going up. There's lots to work with here, Mark, and as we get that under control, we can do sustainable reductions in tax, we can beat inflation, we can boost growth, we can back small business. And we've already announced important tax cuts for small businesses around accelerated depreciation, which is not just good for small business, it drives investment and opportunity for Australians.

 

MARK LEVY: Alright, Mr Taylor, one other aspect of the budget that I'm no fan of is and I don't think we are spending enough on our Defence capabilities and the reason I say that is we've just seen what happened with Chinese flotilla, the fire drills. There's the changing dynamics of the world we're living in at the moment, Labor's promised to increase spending to 2.3% of GDP. President Trump wants that closer to be 3%. What will a Coalition Government spend on our Defence Force?

 

ANGUS TAYLOR: Well can I say everyone should tune in to both the Budget in Reply and announcements that will be made in the coming weeks. But we know we're living in an uncertain world, a deeply uncertain world. Anthony Albanese himself has said, as uncertain it has been since the Second World War.

 

MARK LEVY: Will it be close to 3%?

 

ANGUS TAYLOR: Well, we know that there needs to be more money spent over time on Defence. We know critical to that, by the way, is regardless of what number you pick, if the economy is stronger, the dollar value of that spend is higher, we know how important a stronger economy is to making sure we get the right spending on Defence. But, we will have more to say about this. We've already announced we'll reestablish the fourth squadron for the F35s and I think that's an important step in the right direction to have the capability that we do need. I completely agree with your view, because of the uncertain world, we do have to make sure our spending on Defence is not just the right quantum but is well spent too. Taxpayers deserve that.

 

MARK LEVY: Alright. I still think, and most people out there would agree that this election will be fought on cost of living, cost of living, cost of living. That's what it all comes down to and the suggestion seems to be, even among people in your own ranks, that you've failed to articulate an alternative plan to help families who are struggling. What do you say to that Angus?

 

ANGUS TAYLOR: Well, you know what? There's always a lot of free advice in this business. I bet you get a fair bit too. That's the nature of having a public profile. That's what we get. But I tell you, there is a better way and we had a higher standard of living when we were last in government. I've articulated that, articulated that endlessly, because this government has failed Australians and I tell you what, I think Australians understand that this government has failed them on the economy. I think they understand that there is a better way, and I think they know that we can't afford another three years of what we've just seen.

 

MARK LEVY: Alright, before you go, can you just keep these answers really short for me? One sentence, answers, okay, because I'd be here all morning if I tried to whip through all of them, housing, what are you going to do to fix the housing crisis as part of your budget. One sentence.

 

ANGUS TAYLOR: Fix housing supply, balance housing supply with immigration, immigration is too high.

 

MARK LEVY: ABC, SBS estimated to cost $2 billion a year by the end of the decade, you're going to make cuts there?

 

ANGUS TAYLOR: There's no plan on cuts there. There's cuts, as I've said, $100 billion dollars that we've already announced, and that will make a real difference.

 

MARK LEVY: Australia Post is a source of ongoing concern. Will the Coalition give it a bailout if need be?

 

ANGUS TAYLOR: We need a strong Australia Post, there's no question about that. We want to make sure the LPO as the licensed officers are strong, and that will be a strong focus for us.

 

MARK LEVY: Any cuts to Veteran Affairs?

 

ANGUS TAYLOR: Well veterans are absolutely a priority for the country, and we've said very clearly we need a smaller, more effective public service, but that's not from frontline jobs, and it's certainly not veterans.

 

MARK LEVY: And there was around $10 billion in this budget set aside for green metals, the development of low emissions technologies and net zero emissions targets. Your thoughts on that?

 

ANGUS TAYLOR: We've already been clear that we are opposed to spending on projects that are taking us nowhere, including in that area.

 

MARK LEVY: Alright, fantastic. I appreciate you joining us, Angus. Look forward to the reply tonight for Mr Dutton.

 

ANGUS TAYLOR: You too.

 

MARK LEVY: Good on you, mate. Angus Taylor, Shadow Treasurer.

 

ENDS.