28 January 2026
Clinton Maynard
The Shadow Treasurer, Ted O’Brien joins me. Hi, Ted.
Ted O’Brien
G’day, Clinton.
Clinton Maynard
Before we get into that one, the inflation figures have been released today as well, and I need to ask you about that. The inflation rate CPI for the 12 months of December has increased to 3.8%. Jim Chalmers says, look, they were fearful that the rates would be going up. Is that a good enough response?
Ted O’Brien
Look, it’s not, and you’re right. It’s at 3.8%. That makes inflation higher than any major advanced economy. It’s a horrific outcome. and the market has already spoken. The market is predicting that next week the RBA will increase interest rates. So it’s bad news, and and unfortunately the Treasurer today in his interviews just refused to take any responsibility, didn’t have any solutions as to turn this around. And so really, if you can’t have a Treasurer who admits the problem and will take responsibility to fix it, then he can’t be relied upon. And that’s really disappointing and probably quite scary, I think, for everyday Australians who are relying on a Treasurer and a government to try to manage the economy.
Clinton Maynard
But he did say that there are a range of cost-of-living measures that the government’s rolling out to deal with this exact issue.
Ted O’Brien
He has been saying the same thing for four years, and Australians are hurting. And so this is a problem, that they do not know how to manage the economy. It continues to get worse. I mean, when you’ve got energy prices up by around about 40% since Labor came in, you know there’s something wrong. You know, food and insurance is up near 20% housing. I mean, everything is going through the roof. The government has no solutions. Where it has announced policies, none of them are working. I mean, they have a housing policy and it’s very clear that housing policy is driving prices up. They are falling short of their targets. This is the highest spending government in 40 years.
Clinton Maynard
Well, on that government spending, Ted, there’s a $57 billion black hole in the budget. So in the forward estimates for the next four years, the deficits are bigger than we all thought. But the Treasurer did release his update in December. How didn’t we know about that then?
Ted O’Brien
Well, basically, they tried to hide it. And this is the problem. Over the medium term, you have nearly $60 billion that the government can’t answer for. And this is why it’s referred to as a black hole. And so the government went to last year and presented its budget forecast. And then in December, the Treasurer stands up and he tells the Australian people that, oh, yeah, it’s still in line with what I told you at the election. But what we’ve been able to uncover is, in fact, there’s a black hole of nearly $60 billion. And so what accounts for that? What’s he planning on spending so much money on?
Clinton Maynard
It’s because of spending. It’s not because of a shortfall in tax revenue, tax receipts at all. But government spending, for instance, there’s going to be a meeting of the health ministers on Friday where the states have been pushing for more federal government spending for the states I know here in hospitals in New South Wales they are chockers because they need extra money. Isn’t that spending justified?
Ted O’Brien
Oh, look, there’s no doubt that there are key vital public services that need to keep being funded. And this is why managing the economy is so important. And so are our hospitals important, our education system, system, our modern infrastructure? Absolutely. Is there a role for government in providing those services? Yes. But if the government messes up the economy, it is less likely to be able to keep funding these things, which is why it all comes back to the importance of a strong economy, Clinton. The know, the economy isn’t the end game, it’s the means, right? A strong economy is the means by which you can have a strong health system. It’s the means by which you can have a good education system. But right now, the figures bore this out today, both inflation figures and the black hole. The economy is deteriorating and we have a Treasurer and a government which is blind to it, refusing to admit it, won’t take responsibility for it and have no solutions for it. And that’s the scary part.
Clinton Maynard
Ted, while I have you with me, the Nationals may well hold a spill notion on Monday. Colin Boyce is planning to challenge David Littleproud. It doesn’t mean there will be a vote, but there needs to be a majority of Nationals to make that vote. If is a leadership change, if Colin Boyce or somebody else replaces David Littleproud, is there then a chance the Coalition gets back together?
Ted O’Brien
Clinton, a few things. I’ve been very clear that I believe Australia is best served by a united Liberal National Coalition. And I am hopeful that at some point in the future, we will get back together. You can’t force these things. However, I’ve also been making it very clear over recent days that it’s not the business of the National Party to be publicly commenting on the internal machinations of the Liberal Party. So here I am now and I think you asked the right question but my answer really is it is a matter for the National Party. I respect that as the Deputy Leader of the Liberal Party.I don’t plan to intervene.
Clinton Maynard
There has certainly been talk, though, out of Canberra, out of your side of politics, out of the Liberals, that for the Coalition to get back together, David Littleproud can’t remain in the job. Well, this may well be the opportunity for change there.
Ted O’Brien
Again, Clinton, I just don’t want to be commenting on National Party matters. I get pretty grumpy when National MPs start trying to comment on Liberal Party matters, so I don’t want to be a hypocrite and get on your show and start providing commentary on the Nats.
Clinton Maynard
I appreciate that because there’s certainly plenty of whispers coming out again from the Liberals, particularly the moderate Liberals, that Sussan Ley may well survive because you guys don’t want to be seen to be kowtowing to David Littleproud. So is Sussan Ley going to survive next week?
Ted O’Brien
Well, when it comes to the media speculation about next week, I don’t believe there will be a media challenge. Now, again, you can never forecast the future, but I speak to a lot of colleagues from across the party, and last week was a really big week for us, and a sad one given the break in the coalition. And I think Sussan really did demonstrate dignity and strength in her decision-making. And regardless of where people might sit the party, I haven’t spoken to anybody who has questioned her decision-making last week. And that’s what makes me draw the conclusion that while the media is very interested, I do think it is overstated. And as things stand now, I don’t believe that there’ll be a challenge next week.
Clinton Maynard
It’ll be entertaining to watch anyway. Good luck next week, Ted.
Ted O’Brien
Thanks very much, Clinton. All the best.
ENDS