WEBVTT - Jim Chalmers defends his budget

0:00:01.280 --> 0:00:09.559
<v Speaker 1>I'm Ruby Jones and you're listening to seven AM. For

0:00:09.560 --> 0:00:12.280
<v Speaker 1>two decades we've had a tax policy that pushed up

0:00:12.320 --> 0:00:17.480
<v Speaker 1>house prices, gave landlords huge advantages, and ultimately created an

0:00:17.480 --> 0:00:21.520
<v Speaker 1>intergenerational wealth divide. A week ago the government said it

0:00:21.640 --> 0:00:24.319
<v Speaker 1>wanted to do something about that and announced changes to

0:00:24.360 --> 0:00:28.160
<v Speaker 1>negative gearing and capital gains tax. But the budget hasn't

0:00:28.240 --> 0:00:30.960
<v Speaker 1>gone down well. For some it doesn't go far enough

0:00:30.960 --> 0:00:33.920
<v Speaker 1>to make a real difference to the housing market. For others,

0:00:34.080 --> 0:00:37.520
<v Speaker 1>particularly in business, changes to capital gains go too far.

0:00:38.320 --> 0:00:47.080
<v Speaker 1>Today the Treasurer Jim Chalmers defends his budget. It's Thursday,

0:00:47.360 --> 0:00:55.920
<v Speaker 1>May twenty one. Treasurer, welcome to seven AM. It's great

0:00:55.920 --> 0:00:56.680
<v Speaker 1>to have you on the show.

0:00:56.880 --> 0:00:58.600
<v Speaker 2>Thanks very much, Ruby, thanks for having me back.

0:00:58.760 --> 0:01:01.360
<v Speaker 1>So it's been just over a week since you release

0:01:01.440 --> 0:01:04.160
<v Speaker 1>the budget and fair to say a lot of people

0:01:04.480 --> 0:01:07.200
<v Speaker 1>don't like it. Pole suggests that more than half of

0:01:07.200 --> 0:01:10.759
<v Speaker 1>Australians believe that your changes will make them worse off.

0:01:11.160 --> 0:01:14.280
<v Speaker 1>It was given the worst approval score since nineteen ninety three.

0:01:14.440 --> 0:01:16.760
<v Speaker 1>You've already own a home, or an investment or an asset.

0:01:17.120 --> 0:01:19.160
<v Speaker 1>This budget doesn't really affect them, so why would they

0:01:19.200 --> 0:01:21.200
<v Speaker 1>ever sell their asset, you know, and then for new

0:01:21.240 --> 0:01:23.560
<v Speaker 1>buyers it's like now I lose those benefits if I

0:01:23.600 --> 0:01:23.960
<v Speaker 1>buy it.

0:01:24.240 --> 0:01:26.520
<v Speaker 3>I'm terrified though over the future it doesn't seem to

0:01:26.560 --> 0:01:27.280
<v Speaker 3>be getting any better.

0:01:27.400 --> 0:01:28.679
<v Speaker 4>I'm a single one on a pension.

0:01:28.720 --> 0:01:29.640
<v Speaker 1>There's no way for me.

0:01:29.640 --> 0:01:30.200
<v Speaker 3>To own home.

0:01:30.440 --> 0:01:32.959
<v Speaker 4>I don't understand how this is going to free out

0:01:33.080 --> 0:01:36.760
<v Speaker 4>properties for the younger generation, because as an investment property

0:01:36.800 --> 0:01:40.920
<v Speaker 4>owner myself, I'm going to either hang on or sell

0:01:40.959 --> 0:01:41.360
<v Speaker 4>it for more.

0:01:41.400 --> 0:01:43.480
<v Speaker 5>I think it will take a lot so treasure.

0:01:43.560 --> 0:01:46.240
<v Speaker 1>It's not going well, where do you think you've gone wrong?

0:01:46.560 --> 0:01:48.640
<v Speaker 3>Well, first of all, I think it's important to acknowledge

0:01:48.640 --> 0:01:52.400
<v Speaker 3>that when you're making a significant change, a controversial change

0:01:52.400 --> 0:01:56.400
<v Speaker 3>to the tax system, and obviously not everybody is going

0:01:56.440 --> 0:02:00.520
<v Speaker 3>to be supportive of that. We had realistic expectation when

0:02:00.560 --> 0:02:04.000
<v Speaker 3>we came to these views expressed in the policies in

0:02:04.040 --> 0:02:07.920
<v Speaker 3>the budget, that they would be contentious, and so I

0:02:07.920 --> 0:02:11.679
<v Speaker 3>think in the midst of a pretty full on scare campaign,

0:02:11.680 --> 0:02:13.560
<v Speaker 3>in the midst of a big global oil shop which

0:02:13.600 --> 0:02:16.639
<v Speaker 3>is putting extra pressure on people, and in a budget

0:02:16.720 --> 0:02:19.639
<v Speaker 3>which is full of hard decisions rather than handout, so

0:02:19.720 --> 0:02:22.880
<v Speaker 3>I think the kind of reaction is not especially surprising.

0:02:23.600 --> 0:02:25.359
<v Speaker 3>Our job is to try and do the right thing

0:02:25.520 --> 0:02:29.160
<v Speaker 3>for the right reasons, even if it means paying a

0:02:29.240 --> 0:02:30.520
<v Speaker 3>short term political cost.

0:02:30.560 --> 0:02:31.520
<v Speaker 2>In the polls that you.

0:02:31.520 --> 0:02:34.040
<v Speaker 1>Reference, I want to talk in a bit more detail

0:02:34.120 --> 0:02:38.760
<v Speaker 1>about the changes to negative gearing. So existing investors are protected.

0:02:38.840 --> 0:02:42.160
<v Speaker 1>They'll keep the old arrangements, which means that the impact

0:02:42.240 --> 0:02:44.880
<v Speaker 1>of this is going to be limited, especially in the

0:02:44.880 --> 0:02:48.520
<v Speaker 1>short term. So how worried are you that you've taken

0:02:48.600 --> 0:02:53.120
<v Speaker 1>this big political hit for a policy that really only

0:02:53.480 --> 0:02:55.000
<v Speaker 1>nudges the housing problem.

0:02:55.400 --> 0:02:57.240
<v Speaker 3>Well, first of all, I thought it was really important,

0:02:57.320 --> 0:02:59.840
<v Speaker 3>or we thought it was really important that we wreck

0:03:00.000 --> 0:03:03.680
<v Speaker 3>ignize and respect investment decisions that people have taken already,

0:03:03.720 --> 0:03:08.040
<v Speaker 3>and so that's why there's those transitional arrangements in negat gearing.

0:03:08.080 --> 0:03:11.440
<v Speaker 3>So if you're negatively gearing now, you can continue to

0:03:11.560 --> 0:03:14.600
<v Speaker 3>do that. It's important to remember there as well, that

0:03:15.120 --> 0:03:18.720
<v Speaker 3>at some point properties become positively geared, and so some

0:03:18.760 --> 0:03:22.200
<v Speaker 3>of those investments will exit the negative gearing system, and

0:03:22.240 --> 0:03:24.280
<v Speaker 3>if you want to make a new investment, you can

0:03:24.320 --> 0:03:26.400
<v Speaker 3>negatively gear a new build. So we think that's the

0:03:26.480 --> 0:03:30.440
<v Speaker 3>right balance encouraging people to invest in more housing, supplier

0:03:30.480 --> 0:03:37.040
<v Speaker 3>recognizing and respecting the decisions that people have taken already. Now, obviously, Ruby,

0:03:37.040 --> 0:03:38.760
<v Speaker 3>there's going to be some people who think we should

0:03:38.800 --> 0:03:41.200
<v Speaker 3>have gone further. There will be some people who much

0:03:41.240 --> 0:03:44.000
<v Speaker 3>prefer the existing arrangements. They might be doing well out

0:03:44.000 --> 0:03:47.400
<v Speaker 3>of the existing arrangements. Our job is to try and

0:03:47.440 --> 0:03:49.640
<v Speaker 3>strike a series of fine balances, and I think we've

0:03:49.640 --> 0:03:52.840
<v Speaker 3>struck the right one because this is all about housing.

0:03:53.320 --> 0:03:55.880
<v Speaker 3>This is all about recognizing that the way that the

0:03:55.920 --> 0:03:59.960
<v Speaker 3>housing market and the taxism intersex is working to get

0:04:00.080 --> 0:04:02.920
<v Speaker 3>that have shut out a whole generation of Australians from

0:04:03.840 --> 0:04:06.560
<v Speaker 3>from home ownership and from aspiration more broadly, and so

0:04:06.600 --> 0:04:09.560
<v Speaker 3>that's why we've taken these difficult decisions. There will always

0:04:09.560 --> 0:04:15.240
<v Speaker 3>be strong views about policies like this, big economic reforms

0:04:15.280 --> 0:04:19.400
<v Speaker 3>like this, but we're prepared, as I said before, to

0:04:19.839 --> 0:04:21.880
<v Speaker 3>wear some of that criticism if it means getting too

0:04:21.920 --> 0:04:22.520
<v Speaker 3>the right outcome.

0:04:22.560 --> 0:04:24.360
<v Speaker 2>We didn't want to be the government.

0:04:23.960 --> 0:04:27.960
<v Speaker 3>That left that can signed another generation to being locked

0:04:27.960 --> 0:04:30.520
<v Speaker 3>out of housing because of the way that the tax

0:04:30.640 --> 0:04:32.360
<v Speaker 3>system and housing market is broken.

0:04:32.520 --> 0:04:35.000
<v Speaker 1>Sure, but it's a modest increase that we're talking about

0:04:35.000 --> 0:04:38.960
<v Speaker 1>when it comes to new homeowners seventy five thousand households

0:04:39.000 --> 0:04:42.520
<v Speaker 1>over ten years. But there are millions of young people

0:04:42.560 --> 0:04:44.800
<v Speaker 1>who say that they can't get into the housing market.

0:04:44.920 --> 0:04:47.680
<v Speaker 1>So is there a part of you that wishes that

0:04:47.720 --> 0:04:51.560
<v Speaker 1>you'd gone further, perhaps abolish negative gearing altogether.

0:04:51.960 --> 0:04:55.039
<v Speaker 3>No, I'm pretty confident in the balance that we struck,

0:04:55.720 --> 0:04:58.599
<v Speaker 3>and you know, not everybody would agree that it's a

0:04:59.640 --> 0:05:00.960
<v Speaker 3>that it's too modest to change.

0:05:00.960 --> 0:05:03.400
<v Speaker 2>As I said, there's always a range of views about it.

0:05:03.440 --> 0:05:08.680
<v Speaker 3>Seventy five thousand households which were rental households becoming homeowners.

0:05:08.720 --> 0:05:12.159
<v Speaker 3>I think that's a substantial number, and it's also not

0:05:12.240 --> 0:05:14.719
<v Speaker 3>the only thing we're doing in housing. The budget had

0:05:14.960 --> 0:05:18.559
<v Speaker 3>important steps on youth homelessness. It had billions of dollars

0:05:18.600 --> 0:05:22.040
<v Speaker 3>of investing in more housing supply, as well as making

0:05:22.080 --> 0:05:25.560
<v Speaker 3>the tax system fairer for younger people who work and

0:05:25.640 --> 0:05:29.440
<v Speaker 3>also in the housing market. So across the board, we're

0:05:29.440 --> 0:05:31.679
<v Speaker 3>doing a lot on housing and we think it will

0:05:31.800 --> 0:05:34.400
<v Speaker 3>shift the needle on a problem which has been a

0:05:34.480 --> 0:05:36.719
<v Speaker 3>really difficult problem, not just in our economy but in

0:05:36.760 --> 0:05:38.039
<v Speaker 3>our society for a long time.

0:05:38.080 --> 0:05:41.080
<v Speaker 6>Now, more than forty business founders have written to the

0:05:41.120 --> 0:05:44.920
<v Speaker 6>Prime Minister urging him to walk back controversial capital gains

0:05:44.960 --> 0:05:48.159
<v Speaker 6>tax changes that could hit them when they decide to sell.

0:05:48.360 --> 0:05:50.599
<v Speaker 1>And one of the other big criticisms that you're facing

0:05:50.640 --> 0:05:53.360
<v Speaker 1>at the moment is around the impact of the capital

0:05:53.400 --> 0:05:57.159
<v Speaker 1>gains tax discount changes on business. So there is this

0:05:57.240 --> 0:06:00.919
<v Speaker 1>growing campaign from the business community. There's been burrel memes,

0:06:00.960 --> 0:06:04.599
<v Speaker 1>there's a joint letter from forty young founders who say

0:06:04.640 --> 0:06:09.200
<v Speaker 1>that this is an aspiration ambush that's going to affect

0:06:09.240 --> 0:06:13.680
<v Speaker 1>every growing business in Australia because if we tax risk

0:06:13.720 --> 0:06:15.679
<v Speaker 1>taking in the same way that we tax ordinary income,

0:06:15.680 --> 0:06:17.440
<v Speaker 1>then we left with the question why take the risk

0:06:17.480 --> 0:06:19.920
<v Speaker 1>in the first place. So when you were designing these

0:06:20.000 --> 0:06:23.120
<v Speaker 1>changes to capital gains, why didn't you limit it to

0:06:23.200 --> 0:06:24.839
<v Speaker 1>just property, Well.

0:06:24.640 --> 0:06:28.240
<v Speaker 3>Because we didn't want to replace one big distortion, which

0:06:28.240 --> 0:06:31.400
<v Speaker 3>has been turbo charging house prices, with another distortion.

0:06:32.279 --> 0:06:33.200
<v Speaker 2>You know, there was a.

0:06:33.120 --> 0:06:36.160
<v Speaker 3>Big policy mistake made about a quarter of a century

0:06:36.200 --> 0:06:39.120
<v Speaker 3>ago by Howard and Costello when they changed these arrangements

0:06:39.120 --> 0:06:41.520
<v Speaker 3>away to what we are proposing now. Away from what

0:06:41.560 --> 0:06:46.040
<v Speaker 3>we're proposing now, it made an investment in established housing

0:06:46.080 --> 0:06:48.640
<v Speaker 3>way more attractive, and so we saw the decoupling of

0:06:49.400 --> 0:06:52.360
<v Speaker 3>house prices and incomes around the turn of the century

0:06:52.360 --> 0:06:53.960
<v Speaker 3>and which we're trying to fix that, and not by

0:06:54.000 --> 0:06:58.160
<v Speaker 3>replacing one distortion with another distortion. But the really important

0:06:58.160 --> 0:07:01.719
<v Speaker 3>thing to understand about that, Ruby, is if you look

0:07:01.760 --> 0:07:04.960
<v Speaker 3>at a twenty year period in between when that policy

0:07:05.080 --> 0:07:08.440
<v Speaker 3>change was made, on average, what we saw is that

0:07:08.600 --> 0:07:12.520
<v Speaker 3>investment in established housing was overcompensated for by the old arrangements,

0:07:12.520 --> 0:07:16.120
<v Speaker 3>and investment in shares and medium density units and a

0:07:16.120 --> 0:07:19.800
<v Speaker 3>whole bunch of other types of assets was actually under compensated.

0:07:19.880 --> 0:07:24.680
<v Speaker 3>So by removing this distortion, we hope to rectify that.

0:07:24.840 --> 0:07:27.480
<v Speaker 3>Now there is a campaign being run. I understand that

0:07:27.520 --> 0:07:31.000
<v Speaker 3>there's also unfortunately a fair bit of misinformation being pushed

0:07:31.040 --> 0:07:34.600
<v Speaker 3>around by our political opponents. You know, the forty seven

0:07:34.800 --> 0:07:39.160
<v Speaker 3>cent campaign, for example, pretends that there's no CGT discount anymore.

0:07:39.200 --> 0:07:42.400
<v Speaker 3>That's obviously not true. We're just calculating the discount differently.

0:07:43.120 --> 0:07:45.640
<v Speaker 3>There's a whole bunch of exemptions for small business. There

0:07:45.720 --> 0:07:50.880
<v Speaker 3>actually four different exemptions, carve outs and concessions for small business,

0:07:50.880 --> 0:07:52.760
<v Speaker 3>and all of them are staying in place. And so

0:07:53.560 --> 0:07:55.880
<v Speaker 3>my job, one of the reasons why I'm grateful for

0:07:55.920 --> 0:07:58.120
<v Speaker 3>this opportunity, Ruby, is to point out where there is

0:07:58.160 --> 0:08:02.040
<v Speaker 3>misinformation about the changes that we're we're actually making it

0:08:02.080 --> 0:08:04.680
<v Speaker 3>easier for people to make an investment based on good

0:08:04.760 --> 0:08:07.600
<v Speaker 3>economic outcomes and not just the distortion introduced into the

0:08:07.600 --> 0:08:10.040
<v Speaker 3>tax system in nineteen ninety nine.

0:08:10.760 --> 0:08:14.800
<v Speaker 1>And you've spoken about having further consultations these exemptions. So

0:08:15.400 --> 0:08:18.760
<v Speaker 1>is there more on the table here exemptions being considered

0:08:18.760 --> 0:08:19.680
<v Speaker 1>for startups?

0:08:19.720 --> 0:08:22.480
<v Speaker 2>For example, we are talking with the startup sector.

0:08:22.520 --> 0:08:25.800
<v Speaker 3>We actually began those conversations before the budget, and we

0:08:25.920 --> 0:08:28.040
<v Speaker 3>made it really clear in black and white in the

0:08:28.040 --> 0:08:31.640
<v Speaker 3>budget papers themselves that we understood that when it comes

0:08:31.720 --> 0:08:35.959
<v Speaker 3>to calculating the cost base for startups that they are

0:08:36.000 --> 0:08:37.880
<v Speaker 3>a bit of a different case. And so we were

0:08:37.880 --> 0:08:40.960
<v Speaker 3>doing some private consultation before the budget and now publicly

0:08:41.360 --> 0:08:43.480
<v Speaker 3>I've done a bit of that myself. My department, the

0:08:43.480 --> 0:08:45.880
<v Speaker 3>Treasury Department's been doing that in a more formal way

0:08:45.920 --> 0:08:48.280
<v Speaker 3>to see if we can find a way through which

0:08:48.320 --> 0:08:51.320
<v Speaker 3>recognizes first of all how important startups to our economy,

0:08:51.600 --> 0:08:54.679
<v Speaker 3>providing that dynamism in our economy which we really cherish

0:08:54.679 --> 0:08:58.080
<v Speaker 3>and value, and making sure that we can recognize that

0:08:58.120 --> 0:08:59.880
<v Speaker 3>startups can be a bit of a different case in

0:08:59.880 --> 0:09:01.679
<v Speaker 3>the tax system. So if we can find a way

0:09:01.720 --> 0:09:05.079
<v Speaker 3>through there that would be good, but those conversations that

0:09:05.160 --> 0:09:06.960
<v Speaker 3>consultation is still happening right now.

0:09:08.679 --> 0:09:11.720
<v Speaker 1>Still to come is the government using gas industry figures

0:09:11.760 --> 0:09:13.760
<v Speaker 1>to justify its decision not to.

0:09:13.720 --> 0:09:14.840
<v Speaker 5>Introduce a gas tax.

0:09:22.600 --> 0:09:26.360
<v Speaker 1>You've introduced a gas reservation policy, but not a stronger

0:09:26.400 --> 0:09:30.559
<v Speaker 1>gas export levy. And there is again another very strong

0:09:30.600 --> 0:09:34.480
<v Speaker 1>online campaign around this, around the need for a gas tax.

0:09:34.760 --> 0:09:37.240
<v Speaker 2>No significant additional funding for nature. There is absolutely no

0:09:37.280 --> 0:09:39.200
<v Speaker 2>way labor can deliver on their promise of knowing your

0:09:39.200 --> 0:09:40.520
<v Speaker 2>extinctions with this level of funding.

0:09:40.600 --> 0:09:42.800
<v Speaker 1>Our entire budget on nature is less than a week

0:09:42.880 --> 0:09:44.600
<v Speaker 1>of what a gas export tax would bring in.

0:09:44.679 --> 0:09:47.880
<v Speaker 2>We don't have a shortage of supply. We have a

0:09:47.960 --> 0:09:50.600
<v Speaker 2>glut of greed. We maybe ed you sick.

0:09:50.640 --> 0:09:53.360
<v Speaker 1>And others have also argued that Australia just isn't getting

0:09:53.360 --> 0:09:57.240
<v Speaker 1>a fair return from gas exports. So I mean, couldn't

0:09:57.280 --> 0:09:58.680
<v Speaker 1>the budget have used that money?

0:09:59.000 --> 0:09:59.960
<v Speaker 2>Well, there's a bit of a tick up.

0:10:00.000 --> 0:10:03.480
<v Speaker 3>I've been prt receipts in the budget, but I understand

0:10:03.559 --> 0:10:08.120
<v Speaker 3>that people have got strong views about taxing the gas

0:10:08.160 --> 0:10:11.400
<v Speaker 3>companies more. I introduced some reforms in our first term

0:10:11.440 --> 0:10:14.800
<v Speaker 3>in office so that the gas companies we're paying more

0:10:14.840 --> 0:10:17.800
<v Speaker 3>tax sooner. But again I acknowledge that people would prefer

0:10:18.000 --> 0:10:20.440
<v Speaker 3>we go further, and some people would prefer we go

0:10:20.880 --> 0:10:24.400
<v Speaker 3>much further. I get that, I understand their arguments. From

0:10:24.440 --> 0:10:26.840
<v Speaker 3>our point of view, we think there are good reasons

0:10:26.840 --> 0:10:29.960
<v Speaker 3>to prioritize that gas reservation policy that you're right to

0:10:30.000 --> 0:10:33.359
<v Speaker 3>point to in your question, which is all about decoupling

0:10:33.360 --> 0:10:37.280
<v Speaker 3>the Australian gas market from the roller coaster of international

0:10:37.320 --> 0:10:40.600
<v Speaker 3>prices so that we can get more supply at cheaper

0:10:40.640 --> 0:10:44.800
<v Speaker 3>prices for Australian industry. That's the first thing. But the

0:10:44.840 --> 0:10:47.720
<v Speaker 3>second thing as well is we've got to make sure

0:10:47.760 --> 0:10:51.240
<v Speaker 3>that we can secure this these two way supply arrangements

0:10:51.240 --> 0:10:55.880
<v Speaker 3>with our refining partners in Asia, and so we prioritize

0:10:55.920 --> 0:10:58.880
<v Speaker 3>those two things. And again I understand that's contentious. I mean,

0:11:00.000 --> 0:11:03.480
<v Speaker 3>you do pay very close attention to the arguments being

0:11:03.559 --> 0:11:07.920
<v Speaker 3>run about different gas tax arrangements. But those are our

0:11:07.960 --> 0:11:10.240
<v Speaker 3>two priorities for the time being, and I think they're

0:11:10.240 --> 0:11:11.400
<v Speaker 3>really important priorities.

0:11:11.600 --> 0:11:13.960
<v Speaker 1>In the lead up to the budget, when this idea

0:11:14.040 --> 0:11:16.920
<v Speaker 1>of a gas tax was being canvassed, your government was

0:11:17.040 --> 0:11:19.960
<v Speaker 1>hosing down calls for it by saying that the gas

0:11:19.960 --> 0:11:23.520
<v Speaker 1>industry already pays twenty two billion dollars in tax.

0:11:23.679 --> 0:11:27.559
<v Speaker 3>Well, look, they pay around about twenty two billion dollars

0:11:28.200 --> 0:11:30.000
<v Speaker 3>and importantly as well, and I.

0:11:30.000 --> 0:11:33.360
<v Speaker 1>Noticed that figure, that twenty two billion that actually comes

0:11:33.360 --> 0:11:35.920
<v Speaker 1>from the gas industry. They are quite proud of it.

0:11:36.080 --> 0:11:39.440
<v Speaker 1>So why was the government taking the lobby group's word

0:11:39.520 --> 0:11:42.760
<v Speaker 1>for how much tax they pay. I mean, you're the treasurer.

0:11:42.880 --> 0:11:44.920
<v Speaker 1>So have you asked Treasury about that figure?

0:11:45.280 --> 0:11:45.480
<v Speaker 2>Yeah?

0:11:45.520 --> 0:11:48.320
<v Speaker 3>I think that was just our way of reminding people

0:11:48.360 --> 0:11:50.840
<v Speaker 3>that the PRT is not the only tax that the

0:11:50.840 --> 0:11:51.760
<v Speaker 3>gas companies pay.

0:11:51.800 --> 0:11:52.240
<v Speaker 5>I know that.

0:11:52.440 --> 0:11:57.720
<v Speaker 3>Again, I know it was controversial when those figures were announced.

0:11:58.559 --> 0:12:01.080
<v Speaker 3>The figures I focus on in the PRRT went up

0:12:01.120 --> 0:12:03.360
<v Speaker 3>a little bit in the budget, but again I acknowledged

0:12:03.360 --> 0:12:06.079
<v Speaker 3>that for a number of a lot of people who

0:12:06.160 --> 0:12:08.160
<v Speaker 3>might be listening to us or watching us today, I

0:12:08.200 --> 0:12:11.199
<v Speaker 3>acknowledge that people would prefer us to go further. I've

0:12:11.200 --> 0:12:14.080
<v Speaker 3>tried to explain why we've got these two other priorities

0:12:14.280 --> 0:12:16.240
<v Speaker 3>at the same time. As the PRRT has gone up

0:12:16.280 --> 0:12:18.400
<v Speaker 3>a bit, I know that people would like it to

0:12:18.400 --> 0:12:19.200
<v Speaker 3>go up by much more.

0:12:19.600 --> 0:12:23.760
<v Speaker 1>You've spoken about people feeling disconnected and disregarded by the

0:12:23.800 --> 0:12:27.320
<v Speaker 1>political class and anxious about the lack of opportunity that

0:12:27.360 --> 0:12:30.440
<v Speaker 1>they see for themselves, and you've said you want to

0:12:30.480 --> 0:12:33.679
<v Speaker 1>address those concerns. That's part of what this budget is

0:12:33.720 --> 0:12:37.000
<v Speaker 1>about for you, addressing people's fears for the future. A

0:12:37.040 --> 0:12:41.120
<v Speaker 1>week on from the budget, it doesn't feel like that's working.

0:12:41.320 --> 0:12:45.560
<v Speaker 1>So do you think that you've underestimated people's grievances? Do

0:12:45.559 --> 0:12:47.000
<v Speaker 1>you think that you still are?

0:12:47.520 --> 0:12:47.640
<v Speaker 5>Well?

0:12:47.679 --> 0:12:49.480
<v Speaker 2>I'm not sure. I think about it exactly like that.

0:12:49.600 --> 0:12:56.240
<v Speaker 3>I mean, I take the feedback inherent your question seriously,

0:12:56.400 --> 0:13:00.240
<v Speaker 3>but I don't think anyone expected a week or week

0:13:00.240 --> 0:13:04.280
<v Speaker 3>and a bit after the budget of any budget, that

0:13:04.559 --> 0:13:06.959
<v Speaker 3>people would necessarily that there would be some kind of

0:13:07.080 --> 0:13:10.080
<v Speaker 3>unanimous agreement about it. Obviously, these things are big and contentious,

0:13:10.120 --> 0:13:13.679
<v Speaker 3>they're controversial. But that point that you made at the

0:13:13.720 --> 0:13:15.079
<v Speaker 3>start of your question is really.

0:13:14.920 --> 0:13:18.000
<v Speaker 2>Important to me. I look around the world and I.

0:13:18.000 --> 0:13:25.360
<v Speaker 3>See whole generations or whole cohorts of people who are.

0:13:24.160 --> 0:13:25.920
<v Speaker 2>Feeling disconnected and disregarded.

0:13:25.960 --> 0:13:28.160
<v Speaker 3>I think this is a big, serious question for all

0:13:28.200 --> 0:13:30.559
<v Speaker 3>of us, not just in our economy, but in our society.

0:13:30.600 --> 0:13:34.520
<v Speaker 3>More importantly, this sense of people feeling like the economy

0:13:34.559 --> 0:13:37.360
<v Speaker 3>is working in somebody else's interests and when you try

0:13:37.360 --> 0:13:40.360
<v Speaker 3>and change that or address that, try and avoid that

0:13:40.400 --> 0:13:42.760
<v Speaker 3>situation in Australia that we're seeing in other parts of

0:13:42.800 --> 0:13:46.000
<v Speaker 3>the world, there will be resistance to that. We're seeing

0:13:46.040 --> 0:13:48.679
<v Speaker 3>that resistance play out in some of our newspapers, we're

0:13:48.679 --> 0:13:50.840
<v Speaker 3>seeing it in the language of our opponents. But that

0:13:50.880 --> 0:13:53.960
<v Speaker 3>doesn't mean you shouldn't try. And when I look around

0:13:54.000 --> 0:13:56.560
<v Speaker 3>the world and see the way that communities are fracturing,

0:13:56.960 --> 0:14:01.640
<v Speaker 3>particularly in an intergenerational sense, I take responsibility for trying

0:14:01.720 --> 0:14:05.000
<v Speaker 3>to address that, even if it means that we cop

0:14:05.120 --> 0:14:07.400
<v Speaker 3>a bit of political turbulence or a bit of grief

0:14:07.520 --> 0:14:09.560
<v Speaker 3>or a bit of feedback about it, or even these

0:14:09.600 --> 0:14:13.280
<v Speaker 3>misinformation scare campaigns, I think it's worth it to try

0:14:13.280 --> 0:14:15.440
<v Speaker 3>and avoid the situation that we're seeing around the world.

0:14:15.480 --> 0:14:15.600
<v Speaker 1>Now.

0:14:15.640 --> 0:14:18.120
<v Speaker 3>Not everybody sees what's happening around the world and wants

0:14:18.120 --> 0:14:21.080
<v Speaker 3>to take a different path to that. Some people, including

0:14:21.080 --> 0:14:24.160
<v Speaker 3>our opponents, they want to kind of copy the very

0:14:24.200 --> 0:14:27.040
<v Speaker 3>divisive politics that we're seeing in other parts of the world.

0:14:27.080 --> 0:14:28.880
<v Speaker 3>I don't want to, and I think that one of

0:14:28.880 --> 0:14:32.760
<v Speaker 3>the reasons people feel disconnected and disregarded is because of

0:14:32.800 --> 0:14:34.640
<v Speaker 3>this sense that the economy.

0:14:34.160 --> 0:14:35.320
<v Speaker 2>Doesn't work for them. Anymore.

0:14:35.320 --> 0:14:37.640
<v Speaker 3>And that's why we're taking some of these difficult decisions,

0:14:37.640 --> 0:14:40.600
<v Speaker 3>particularly in the housing market and where it intersects with

0:14:40.640 --> 0:14:42.760
<v Speaker 3>the tax system, because we care enough about it to

0:14:42.800 --> 0:14:43.680
<v Speaker 3>do something about it.

0:14:45.400 --> 0:14:47.160
<v Speaker 1>Treasure At, thank you so much for your time.

0:14:47.840 --> 0:14:48.360
<v Speaker 2>Appreciate it.

0:14:48.440 --> 0:15:00.000
<v Speaker 5>Ruby, thank you.

0:15:00.120 --> 0:15:03.320
<v Speaker 1>Also in the news, health officials across the country are

0:15:03.360 --> 0:15:07.240
<v Speaker 1>working to control Australia's largest ep theoria outbreak on record.

0:15:07.720 --> 0:15:10.480
<v Speaker 1>More than two hundred and twenty cases have been recorded

0:15:10.520 --> 0:15:13.360
<v Speaker 1>across the country so far this year, with the vast

0:15:13.360 --> 0:15:17.480
<v Speaker 1>majority in the Northern Territory and Western Australia. Diphtheria is

0:15:17.520 --> 0:15:22.119
<v Speaker 1>a contagious bacterial infection that's preventable through vaccination, and authorities

0:15:22.120 --> 0:15:25.760
<v Speaker 1>say crowded living conditions and low immunization rates in remote

0:15:25.760 --> 0:15:29.920
<v Speaker 1>communities of fueling the outbreak, and Australia's Special Envoy to

0:15:29.960 --> 0:15:33.720
<v Speaker 1>combat Islamophobia, Aftab Malik, is calling on the federal government

0:15:33.760 --> 0:15:37.760
<v Speaker 1>to respond to his recommendations to combat Islamophobia in Australia.

0:15:37.960 --> 0:15:40.840
<v Speaker 1>Following a deadly shooting at a mosque in the United States,

0:15:41.440 --> 0:15:44.120
<v Speaker 1>three people were killed at the Islamic Center of San Diego,

0:15:44.320 --> 0:15:48.360
<v Speaker 1>with authorities saying the two teenage attackers had expressed broad

0:15:48.440 --> 0:15:53.000
<v Speaker 1>hatred towards different religions and races. Their writings also reportedly

0:15:53.040 --> 0:15:56.360
<v Speaker 1>referenced the twenty nineteen christ Church Mosk attack, in which

0:15:56.440 --> 0:16:00.400
<v Speaker 1>fifty one people were killed and another forty shot. Alex

0:16:00.440 --> 0:16:03.360
<v Speaker 1>says Australia cannot wait for a christ Church style attack

0:16:03.640 --> 0:16:07.640
<v Speaker 1>before taking action on Islamophobia. I'm Ruby Jones. This is

0:16:07.640 --> 0:16:08.320
<v Speaker 1>seven am.

0:16:08.360 --> 0:16:09.120
<v Speaker 4>Thanks for listening.