Topics: Labor’s cost of living con job 

 

E&OE   

 

KIERAN GILBERT: 

Let's turn now to the economy. It's July 1, a lot to talk about. Shadow Treasurer Angus Taylor with me and the government has been hoping to get the focus on its response with the tax cuts, energy rebate, increase in the award wages. There have been a few other distractions with one of their senators, but don't they have a decent story to tell with what they're trying to do there.  

 

ANGUS TAYLOR: 

Well, it's a cost of living con job, Kieran. The truth is that Australians' standard of living has dropped by 8% or so since Labor came to power in the last two years. Prices up 10%, 12 interest rate increases, 20% increase in personal income taxes being paid, and Australians' standard of living has been absolutely smashed. So they're taking with one hand, extra tax and prices going up, and trying to give with the other. But it'll never be enough. I mean, there's no plan that's going to even come close to restoring Australians' standard of living because this homegrown inflation is raging, and is ensuring that Australians are worse off. Now, the real thing you've got to do here is deal with the source, not the symptoms, and beat inflation. And that's what the government's failing, four months in a row where inflation has been rising. We are alone amongst the G10, major countries around the world, in seeing inflation that's accelerated since December, and it's a complete disaster for Australian households and businesses, for that matter.  

 

KIERAN GILBERT: 

There are important numbers out this week with retail trade, we know that the labour market is tight already. There are a number of economists who believe there is, you know, a majority I think now think there will be another hike. And possibly as soon as August. What sort of impact would another hike have on the economy, on households and business? 

 

ANGUS TAYLOR: 

Well it’ll obviously be devastating. But just having interest rates that are higher for longer would be devastating as well, Kieran.. 

 

KIERAN GILBERT:  

Will we see a recession, do you think?  

 

ANGUS TAYLOR:  

Well you know, I'm not going to get into forecasting, we're already in a household recession. We've had GDP per capita either going backwards or not moving forwards for five quarters. It's an absolute disaster from the point of view of Australian households. So here we are, we've got rising inflation, GDP per capita recession, household recession, I mean, this is a diabolical set of circumstances for Australian households. They're living on hope, but hope has evaporated. 

 

KIERAN GILBERT: 

But another hike, will that be needed?  

 

ANGUS TAYLOR: 

They're demoralised and another hike would be devastating, but just interest rates staying at the levels they are for an extended period of time would be absolutely devastating. And that's why we are seeing hope evaporating for so many Australian families. 

 

KIERAN GILBERT: 

But it is a global, it's a global issue isn't it, that many, many nations have had to try and grapple with, including in the US which continues to battle sustained inflation.  

 

ANGUS TAYLOR: 

Well, Michele Bullock, the RBA Governor has said this is homegrown inflation. This is Labor's inflation. This is Jimflation, Kieran. This is coming from policies from this government. And the reason we know that is that non tradable inflation is so much higher, many times higher than tradable inflation. And we are alone at the back of the pack in terms of beating it. Four months in a row where inflation has gone up, we're not seeing that in other countries around the world. And that tells us that the policy settings here are wrong, and they clearly are.  

 

KIERAN GILBERT: 

Is it a reflection on just how resilient the labour market's been?  

 

ANGUS TAYLOR: 

Well, it's a reflection on the government failing to deal with the issue over the last two years. I mean, we've got spending increasing at 16% over the next two years. That's not how you beat inflation. And this is a Treasurer who's spending $40 million on his own spin unit, we saw the money that was spent on the referendum, half a billion dollars or so. We're continuing to see money spent on activists who are stopping major projects, grants going off to the CFMEU. I mean, this is the kind of waste that is completely unnecessary and inappropriate. And it adds fuel to the fire, it adds to inflation. Meanwhile, you've got policies from this government that, they are refusing to give rapid approvals for critical projects that the country needs to get ahead, we've seen labour productivity and sharp reversal under this government, so everything is moving in the wrong direction. And the result is our economy is in deep trouble.  

 

KIERAN GILBERT: 

Do you recognise though, that it's time for the Coalition to put some detail out there as well? We're now within an election, a year from the election, we haven't got any significant costings on your big ticket nuclear item.  

 

ANGUS TAYLOR:  

Well, we haven't been shy about differentiating our policy positions, Kieran, that's very clear. And you know, there's more to come, obviously. But unlike Labor, when they were running for the last election, who basically just told us they were going to give us a $275 price reduction, cheaper mortgages, and haven't delivered any of that... 

 

KIERAN GILBERT: 

There's been a war in Ukraine...  

 

ANGUS TAYLOR: 

Well look but yes, of course. I mean, Jim will always use that as an excuse. They'll look for any excuse... 

 

KIERAN GILBERT: 

It's a pretty good excuse.  

 

ANGUS TAYLOR: 

Except that why is it that Australia has got inflation accelerating, when other countries in the world have got inflation going down? Why is it that Australia is in a GDP per capita recession and we're not seeing that across the board? Why is it that Michele Bullock points out that we've got homegrown inflation? I mean, the evidence on this is overwhelming. And the more the government puts its head in the sand, the more that it will be increasingly difficult to beat this. To your question about policies, I mean, this is why we've put out policies like aligning our immigration policy with our housing supply. If you've got immigration policy running way ahead of your housing supply, there's no way you can beat inflation. But these are the sorts of policy positions that the government has, that are all wrong.  

 

KIERAN GILBERT: 

12 rate rises, shouldn't you be ahead in the polls? It's still behind, according to latest newspoll.  

 

ANGUS TAYLOR: 

Oh look, I mean, you can get obsessed about every poll and we don't. But what I do know is that Australians are completely frustrated and demoralised with the government's policy positions right now. We're seeing that increasing almost by the day, and I think we'll continue to.  

 

KIERAN GILBERT: 

Angus Taylor, thanks.  

 

ANGUS TAYLOR: 

Good on you. 

 

ENDS.