Tom Connell
Shadow Foreign Affairs Minister, Ted O'Brien, for well, mainly his take on the budget, of course. Look, the big part is obviously what the Coalition is talking about, a broken promise. Labor broke a promise over stage three tax cuts. Ultimately, that seems to have gone down pretty well. Does that show the broken promise is one thing, but if they agree with the policy change, that will be the main thing?
Ted O'Brien
Tom, I think the truth is, Labor has not just revealed their complete dishonesty here, but I think they are weakening politics in Australia. I mean, you just heard that comment from the Treasurer you know, talking about what's happening in politics around the world. People do believe the political system is broken, and at this time, the Labor Government has chosen to deliberately break its promises. I mean, what does that tell you about the disregard they hold for democracy, the Australian people. I mean, this isn't some small change. This is a fundamental commitment about taxation. They looked the Australian people in the eye, and I believe they deliberately lied. They deliberately lied to the Australian people. And I think they're telling another lie last night. They're telling another lie today, and that is pretending this is good for young people. This is a fundamental attack on aspiration for young Australians. I think it's a complete disgrace. And you know Albanese, I mean, no doubt he is the master of political tactics in the parliament, but he has lied to the Australian people, and now for him to hop up and say, this is good for young people, when in fact their tax changes are fewer houses, higher rent, the very tax benefits he himself, as a Prime Minister, has enjoyed, he is going to rob the next generation, denying them of the opportunity to have the same aspiration he has had through his life. And he says, this is good for young people? No, it's not.
Tom Connell
So the argument there is that the aspiration, the mere aspiration, to be able to get a house, buy a house, and live in it, that too many people are being denied that. So what do you make of that, that argument in terms of the numbers it will affect because this was Labor's calculus on stage three, wasn't it? Well, some people are going to be annoyed. A lot more people will be happy. Are you looking at this policy and saying, maybe that will be the same thing here, that yes, people trying to get ahead will find it harder, but more people might be able to get into the market?
Ted O'Brien
Tom, I don't. I hear their argument, but again, I think the argument is flawed. They've introduced tax changes where Treasury's own document in black and white say that it will actually reduce the supply.
Tom Connell
So just on that, that's true. That's what it says. But they're also using revenue generated to have separate investments in housing, and they say the net-effect is more housing. So that is also within this budget document.
Ted O'Brien
So they have conceded the number one issue here is supply. They've said that, and we agree with that.
Tom Connell
Yes.
Ted O'Brien
But then the number one instrument in their budget to address that reduces supply, right?
Tom Connell
Overall, according to the Budget papers there is a net increase.
Ted O'Brien
The thing that tries to balance that off is basically their adoption of a Coalition policy. We're not going to criticize them for copying the very policy they criticized this time last year. So think about this. They adopt a policy that's good last night, which is actually Coalition policy that this time last year they were criticizing, and then they introduce another policy, which this time last year, they denied they were ever going to do. This goes to trust and this goes to our political system in Australia being eroded as we speak. We know that. The Australian people feel as though the political class is not listening to them, and now we have the government of the day deliberately lying to the Australian people. I think that's absolutely disgraceful.
Tom Connell
What do you think of something quite a few economists have said has been an increasing problem in Australia, in that capital is taxed much more lightly than income, and by definition, the more money and assets you've got, the richer you'll get. If you're trying to work your way up, it's like you're on a slippery ladder. What do you think of that overall issue?
Ted O'Brien
I think that overall issue is framing the economic problem we have in the wrong way. It sets up an old school class conflict. That's not the way you grow the economy. We need to make sure that we have lower taxes. When it comes to capital, there's a reason why you don't want to over tax capital. One, it'll go elsewhere. Two, you want to attract it, because it compounds over time, and that is why it's the only thing that can drive productivity. Productivity leads to real wages. Real wages is what increases people's standard of living. Then when it comes to the individual, of course, we want to see people paying less personal income taxes over time. Now...
Tom Connell
I that going to be your pitch on Thursday, or will you wait to do that?
Ted O'Brien
That is up to leader. Angus Taylor, will be making budget in reply... (inaudible). Of course, he does. He's a team player. He's a team leader, but that's for him to announce as to what the plan is for the team.
Tom Connell
The budget seems to predict the Iran war could end next month. It sounds like good news.
Ted O'Brien
Well, of course, it doesn't surprise me that that Anthony Albanese and Jim Chalmers are adopting a scenario they are wishing for.
Tom Connell
That's Treasury, I guess.
Ted O'Brien
Well, it's it's actually the government. It is the government that dictates the terms to Treasury as to what appears in that budget, and this is why the government has to take responsibility. They can't hide behind Treasury. Just like the treasurer hides behind the Reserve Bank, he can't just hide behind Treasury. This is his budget. It is fundamentally unfair, especially to the very generation they pretend it is going to benefit.
Tom Connell
Got to leave it there. Ted O'Brien, appreciate your time.
ENDS
