Topics:  Treasurer’s visit to China, Labor’s secret housing tax, Immigration 

 

E&OE   

 

MICHAEL ROWLAND: 

Well, it's been a big week for the economy and economic news. The Shadow Treasurer Angus Taylor joins us in the studio now. Angus Taylor, very good morning to you.  

 

ANGUS TAYLOR: 

Good to be with you, Michael. 

 

MICHAEL ROWLAND: 

Want to start on the back of that story from Kathleen. Do you support the government's efforts to further improve what have been fractured economic relations with China?  

 

ANGUS TAYLOR: 

Of course. I mean a strong economic relationship with China I think is good for Australia. We strongly support that, and the trade relationship. That has to be balanced with a line in the sand on strategic issues, on geopolitical issues, and it's crucial to get that balance right. And as long as we do that, we will always support strengthening that economic relationship.  

 

MICHAEL ROWLAND: 

Want to go back to our top story this morning, which is the ACCC's report saying Australians have lost trust to the big supermarket chains Coles and Woolies. It comes on the back of course of the ACCC launching legal action early this week over that alleged price manipulation. There's not a lot of love out there is there, for the big supermarket chains at the moment?  

 

ANGUS TAYLOR: 

Well, I think what this says is that people want these supermarkets to serve their customers well, and I think that's what they want from all businesses, big business in particular, and they're making their views clear. I note here that this report also highlights the land banking that has been going on by the supermarkets, something we're deeply concerned about. We've been saying for some time we need to have a mandatory code, grocery code, in place. We also think there should be more significant penalties for anti competitive conduct for misuse of market power, including divestment, if that's appropriate, and that would include divestment of undeveloped sites, which is preventing competition coming into the market.  

MICHAEL ROWLAND: 

Okay, let's talk about some of the big stories of the week. The Prime Minister on this show yesterday ruled out taking negative gearing and capital gains tax changes to the next election. I struggled to get a similar guarantee from your colleague, Jane Hume on the show earlier. Will the Coalition take any changes to negative gearing and capital gains tax changes to the election?  

 

ANGUS TAYLOR: 

No. Peter Dutton has been clear on that. 

 

MICHAEL ROWLAND:  

So no changes...  

 

ANGUS TAYLOR: 

That's right. I'm pleased to hear the Prime Minister say he won't, but I have to say, trusting him on these tax issues is tough because he said one thing and done another on multiple occasions in the past, when it comes to tax. We are very concerned about this. We need more housing in the market. We need more supply, and adding a tax is not a way to increase supply of housing at a time when cost of living pressures continue to bear down on Australians, particularly when it comes to housing.  

 

MICHAEL ROWLAND: 

Okay, well, the government has its Help to Buy policy, which the Coalition, with the Greens, ensured was not voted on in the Senate. What is wrong with supporting a policy that, at the start, provides access to the housing market of 40,000 Australians?  

 

ANGUS TAYLOR:  

Well, we don't think it will do that. And we think what's happening here is Labor is seeking to replace mum and dad landlords and investors with big corporate and big investment fund landlords. And I think Australians have always liked the idea that we have mum and dad investors, who are landlords, who you rent from. If we move to a model which we see in some other countries in the world, of the big end of town owning 1000s of houses and being the landlord for Australians, we think it's the wrong way to go.  

 

MICHAEL ROWLAND: 

Okay, so why not declare your principle and put your position on the line and allow that to be voted on and vote no, so Australians can see where the Coalition stands on that.  

 

ANGUS TAYLOR: 

Well, I think we've been very clear that that's a picture of housing we don't want to go to so... 

 

MICHAEL ROWLAND: 

[inaudible] agreed with the government to bring it to a vote and vote no to declare...  

 

ANGUS TAYLOR: 

These are procedural matters in the parliament. What matters here is the principle. And the principle is we do want to see more supply coming into the market. We don't think this is the way to do it, and we certainly don't think imposing a tax on mum and dad investors in housing would make any improvement in a situation which is really dire out there right now, Michael. 

 

MICHAEL ROWLAND:  

Is it still the Coalition's plan, if elected, to allow Australians to tap into their super to buy a house?  

 

ANGUS TAYLOR: 

Yeah, it is, and we think it is appropriate that a proportionate amount of super be usable to invest in your house. Right now, we've got a situation where you can use your super to invest in anybody's house except your own, and we think that's inappropriate. And of course, it's an investment. And in fact, for Australians, it's been a very good investment over a long period of time, which means that nest egg is protected and that people will go into retirement in a good position. The best way to go into retirement in a good position is to own your home, and we want more Australians to own their home. 

 

MICHAEL ROWLAND: 

But at the same time, they'll have a lower super balance going into retirement if they're allowed to tap into their super. Does that concern you in terms of greater, say, pressure on the aged pension system? 

 

ANGUS TAYLOR:  

What matters is that they have a nest egg. They have savings. And many Australians rightly, have had their savings embedded in the house. It's a good place to have some of your savings. 

 

MICHAEL ROWLAND: 

Super Members Council has commissioned a study showing your policy, if implemented, will see house prices rise by up to 9%. 

 

ANGUS TAYLOR: 

We don't accept that. Look, the Super Members Council has one main goal, which is more money in super funds. But Australians also want to balance that with money in their homes and owning their homes. And I think that's a fair balance.  

 

MICHAEL ROWLAND: 

Okay, so the last policy was allowing Australians to tap up to 40% and a threshold of $50,000. Is the Coalition looking at increasing both of those levels at the next election?  

 

ANGUS TAYLOR: 

We'll announce our policies in advance of the election. I won't be doing that today, Michael. But what we will always strongly support is giving Australians the best opportunity of owning their home, getting access to housing at an affordable rate, which is why we're so concerned about the mood of changes this week, the secret plan that the government has been working on. And so we'll continue to pursue policies that are going to give Australians the best chance of getting access to affordable housing as well as owning their home.  

 

MICHAEL ROWLAND: 

Ok finally, Peter Dutton, the Opposition Leader, has likened overstaying international students to, in his words, the modern version of boat arrivals. What does that mean?  

 

ANGUS TAYLOR: 

Well, what it means is that we've seen extraordinary increases in population in Australia in the last couple of years. Well over 1.2 million in just two years, and we have to make sure that we choose who is here and the terms on which they are here, as John Howard said all those years ago. 

 

MICHAEL ROWLAND: 

You don't see that language can be seen to be a bit inflammatory? 

 

ANGUS TAYLOR: 

Well, I think it's right and proper to say that Australia chooses its immigration and sets its immigration rates and who comes here. That's right and proper for every sovereign nation, including Australia. And Peter is making that point. I strongly agree with that. Right now, we have seen record levels of immigration, I mean, way beyond what we've seen before Michael, and we've struggled to deal with that. It's been a major issue.  

 

MICHAEL ROWLAND: 

Do you endorse that language likening international students over staying, to boat arrivals? 

 

ANGUS TAYLOR: 

Well, I think it is like that. That's exactly what it is. We are seeing a loss of control of migration in this country. This government has lost control of migration. It's not even going to get close to its targets. I mean, in three quarters in the last financial year, they've almost reached their target for the entire year. We are going to be way over what they said it was going to be. They've lost control, and Peter is making that point quite rightly.  

 

MICHAEL ROWLAND: 

Angus Taylor, really appreciate your time this morning. Thank you.  

 

ANGUS TAYLOR: 

Good on you. Thanks, Michael. 

 

ENDS.