TED O’BRIEN MP
SHADOW MINISTER FOR FOREIGN AFFAIRS
FEDERAL MEMBER FOR FAIRFAX
TRANSCRIPT
SKY NEWS
INTERVIEW WITH PETER STEFANOVIC, FIRST EDITION
Tuesday, 05 May 2026
Topics: Strait of Hormuz, Inflation on the rise under Labor, possible rate rise, Japan visit.
E&OE…………………………………………………………………………………………
Peter Stefanovic
Joining us live this morning is the Shadow Foreign Minister, Ted O'Brien. Lots to talk about today. Ted, good to see you, by the way, but from afar, let's start here. How strong do you think the ceasefire is looking at this hour?
Ted O'Brien
Well, look, I think the ceasefire is fragile, and I think it has been the entire time, Pete, is the truth of it. which is why we're all hoping it holds and there's a speedy resolution to the conflict. You mentioned the Strait of Hormuz. Indeed, there, that's a very dangerous waterway. There's enormous amount of confusion about exactly what is happening, but from Australia's perspective, it's pretty clear in terms of our interest, and our interest is to see the Strait of Hormuz reopened so that we can have that freedom of navigation of vessels going in and out, so that this global energy crisis which is hitting us here at home, can be finally resolved.
Peter Stefanovic
Okay, still in your wheelhouse, as Greg Sheridan pointed out in the AUS (The Australian) this morning Ted, there was quite a difference between the recent arrival of Canada's Prime Minister as opposed to the arrival of Japan's Prime Minister who is a more important ally, I would have thought, but what did you make of what was agreed upon and what was signed during her visit?
Ted O'Brien
Look, anything that strengthens our relationship with Japan, we support Pete. But I have to say, I think Greg Sheridan's article was spot on. I mean, the government should have made a bigger deal out of the visit from Prime Minister Takaichi. This is a vitally important relationship for us, and one that the Coalition, by the way, is really proud of our track record with. I mean, she was here celebrating the 50th Anniversary of a post war trade treaty with the Menzies government. It was the Abbott government that ensured the relationship was lifted up to be of special strategic partnership levels. They did a Free Trade Agreement of the Turnbull and Morrison governments that ensured the Quad came into being with Prime Minister Abe and so for us, I have to say, we were disappointed that more was not made of this really important visit by the Japanese Prime Minister. She's still in town, I believe, through today, yeah, and so, of course, she has a very warm welcome from our side of politics.
Peter Stefanovic
Well, let's get on to some local matters. An RBA rate hike looking likely again today, Ted. But is this one on the war?
Ted O'Brien
No, this one is squarely, again, on the government, which is why we've just seen this complete series of inflation going up and interest rates going up. Pete, I hope interest rates don't go up today, but you know, the markets are pricing in yet another probably 25 basis point rise. So, the average Australian family, if they have a mortgage, they are paying an extra $27,000, a year. $27,000 a year more under the Albanese government. Why? Because interest rates keep going up under these guys. Why? Because they can't stop spending money. We heard news today about the budget next week, again, it's spending money.
Peter Stefanovic
No, I'll get to that in a point. But you must concede though, I mean looking at the inflation figures from last week, where it jacked up fuel was a primary driver of that. Do you not concede that the war has played a role?
Ted O'Brien
There's no doubt. Nobody is blaming Anthony Albanese for triggering the war in the Middle East. And indeed, we are seeing the flow through on fuel prices in Australia. But as the RBA has said consistently long before the war in Iran, this is homemade inflation. This is the biggest spending government in 40 years outside of recession, Pete. 40 years. Albanese and Chalmers cannot stop spending money, and that is just driving up the price of everything, because suddenly the government competes with households and businesses, and that push puts pressure on prices, so prices are going up. It's why you see the underlying inflation still at 3.3%, way above the 2.5% percent target. This is the problem, and all the economists are calling out the government has to stop its spending spree.
Peter Stefanovic
Well, it looks like those, those concerns, are going to be ignored with something in the order of $200 to $300 dollar handouts to working Australians. I guess that might be a quid pro quo for increasing taxes on capital gains tax and negative gearing. Is that something that you would accept if it's offered?
Ted O'Brien
Well, this is now the highest taxing government in Australian history, Pete. And so, the average Australian worker their personal income tax, they are paying an extra $2,000 a year under this government, extra $2,000 a year. And so, the idea of what they're going to get now a $200 tax offset. I mean, the Albanese government is basically putting their hand in the back pocket of every Australian worker, flogging their wallet, taking out big wads of cash, and then putting some loose change in their front pocket, wanting to be patted on the back. This is what's happening. Australians are being mugged by a government that cannot control its spending.
Peter Stefanovic
Is that to say that you won't support this?
Ted O'Brien
Well, again, it's rumor. Let's wait to see what they put on the table, and let's look at it in a holistic sense to see what else they're trying to do with the budget. To date, though, Pete, I can tell you this, this government can't control the finances, and Australians are paying the price.
Peter Stefanovic
All right. Ted O'Brien, we'll leave it there. Appreciate it, though.
