GEORGIE GARDNER:
Well tax cuts now, and even more if you vote for us at the next election. That is the Turnbull Government’s Budget promise to Australia. But does it stack up?
The Prime Minister, Malcolm Turnbull, I'm very pleased to say joins us now.
Prime Minister good morning to you.
PRIME MINISTER:
Good morning Georgie. Great to be with you.
GEORGIE GARDNER:
Thank you. Well this could well be the final budget before the next election. And you have got more money to play with than any Prime Minister has had for a decade - you must be happy with that?
PRIME MINISTER:
Well it's a stronger economy and that's delivering the ability to ensure that Australian families keep more of the money they have earned. And as you know, what we're going to see is 10 million Australian taxpayers benefitting from our tax relief and 4.4 million of them in the middle, people on middle incomes, will be getting $530 back with their tax returns.
So that's in the first stage and then over the seven years very important tax reform. We want to legislate it all now. Australians expect us to plan for the long-term.
But, you know Georgie, this is what you get from a stronger economy. That's why we can guarantee essential services, spend record amounts on health, hospitals, infrastructure, schools, ensure older Australians have more choice and more support.
This is a vital budget because what this is doing is showing that if you have a stronger economy, if you have a national economic plan as we do, a plan for the long-term – you get record jobs growth, lowest number of people, and percentage of people, percentage of people of working age on welfare in 25 years.
These are great outcomes. We want Australians to benefit from this and get the support from their government that they deserve.
GEORGIE GARDNER:
Prime Minister as you rightly point out though, much of this promised tax relief relies you on being re-elected not just once but twice. How do you convince the electorate that you're the man for the job?
PRIME MINISTER:
Well Georgie, this tax relief is going to be legislated. We'll be presenting legislation into the house which will put the whole of the plan into legislation. So we are committed to that.
Look, the greatest risk to our economic growth, the greatest risk to our essential services, and the greatest risk to the support older Australians are getting - is a Labor government.
I mean Bill Shorten is anti-business, anti- jobs, he wants to increase taxes on everyone including self-funded retirees. He wants to go after people's franking credits, from people with small savings, very modest savings in fact in many cases. He wants to go after them. There's nobody he wants to tax more. Nobody that he doesn't want to tax more. He wants to go after Australian businesses that are doing the hard yards and making the investments and employing people. So, it’s a big choice.
GEORGIE GARDNER:
Mr Turnbull you would be well aware that the general consensus out there, the feeling among voters is that they're disillusioned with political spin. They're sick of the rhetoric. They’re crying out for strong and trustworthy leadership. Do you think your delivering on that? Why isn't that cutting through?
PRIME MINISTER:
Well, Georgie, no one is accusing me of breaking election promises. I went to the 2016 election and I promised jobs and growth. I promised stronger economic growth. I promised a national economic plan.
GEORGIE GARDNER:
So why aren't polls working in your favour then?
PRIME MINISTER:
Georgie, let’s just focus on the real outcomes. What Australians are concerned about is can I get a job? Can I get a better job? Can my kids get a job?
And you saw last year, 415,000 jobs created. The largest jobs growth in our country's history. We have the lowest percentage of Australians of working age on welfare and we are turning the corner on debt.
So, we are going to be rolling back that debt at long last. So we won't be throwing a growing mountain of debt onto the shoulders of our children and grandchildren. It's all enabled by a strong economy. So the government that I lead is committed to supporting stronger economic growth and we are delivering on that and the statistics are there, the numbers are there. Of course that enables us to provide this very important and much needed tax relief.
GEORGIE GARDNER:
You talk about not throwing the debt onto future generations, but with respect to the $35 billion unexpected windfall - wouldn't the most economically responsible thing be to pay off that existing debt so we're not saddling future generations with more debt?
PRIME MINISTER:
Well we're doing all of those things Georgie.
GEORGIE GARDNER:
You could’ve wiped an extra 10 per cent off, couldn't you?
PRIME MINISTER:
Well Georgie, the debt is peaking this year. Net debt is peaking as a percentage of GDP this year. And then it's declining. After 10 years it will represent around 3.8 per cent of GDP.
So debt we're bringing down, we’ve turned the corner on debt. If you are, as many of your viewers will be today, if you’re earning average-middle incomes, it might be a couple, a nurse and a teacher, you’ve got rising cost of living. Wage rises have been pretty modest in recent years. Yes, there are a lot more jobs around. But we've yet to see stronger wage rises.
Being able to get next year with your tax return $530 each, over a $1,000. That is real support for families and that's what we're committed to delivering.
GEORGIE GARDNER:
You of course are a grandfather now, I know you’re a very proud grandfather.
PRIME MINISTER:
Four grandchildren.
GEORGIE GARDNER:
I know. Congratulations are on that.
Are you comfortable with the country you’re leaving your grandchildren?
PRIME MINISTER:
Well we're making it better for them. That’s my job.
Thank you so much for raising it Georgie because everything I do and everything the government does, is focussed on ensuring that we have, that we leave, an even better Australia. An even stronger Australia with greater opportunities for our children and our grandchildren. That's one of the reasons we're turning the corner on debt.
So we won't be throwing a growing mountain of debt for them to pay off. That's why we're building the infrastructure of the 21st century. Whether it's a railway out to Melbourne Airport, which should have been built as we all know, decades ago. Whether it's the Inland Rail, whether its Western Sydney Airport, whether it’s Metronet in Perth. What we are doing is supporting all those investments, long-term investments.
Snowy hydro 2.0 - that was first proposed in the 1960s.
We're getting on with this investment in infrastructure. We’re putting more money than ever into schools. We’re putting more money than ever into hospitals and health. And we're able to do that because we have a stronger economy.
So the real question - you talk about the election which will be held next year - the question will be is who do you trust to deliver the strong economic growth that we need to enable us to do all these good things?
Without that strong economic growth, you can't do any of it.
GEORGIE GARDNER:
So given all that you’ve just laid out, what's your message to the country’s most vulnerable, there’s a lot of disappointment this morning that the $40 a day rate of the Newstart allowance wasn't lifted? What's your message to the most down trodden and vulnerable in our community?
PRIME MINISTER:
Well, people on Newstart have got a better opportunity to get job. That's what they're looking for. They're on Newstart because they're looking for work. What we have secured is stronger economic growth that is delivering more opportunities to get the best form of welfare, which is a job. A job. That's what we want people to do. We have special programs for young people, particularly those who have been out of workforce for some time. The PATH program, for example.
We are determined to do everything we can. Whether it is young people or indeed older Australians, to give the incentives for them to get a job or to stay in the workforce. It's vitally important.
Look what we’ve done with childcare. Biggest childcare reforms in a generation. What they're doing is enabling more Australians to stay connected with the workforce, to stay in their employment while their families are small. While their children are small.
It is every aspect of our policy is focussed on delivering stronger economic growth, giving Australians more choice. Allowing families to keep more of the money they have earned. It's their money after all. Allowing them to keep more of the money they have earned and above all delivering that strong economic growth that enables us to do all these things.
GEORGIE GARDNER:
Prime Minister you touched on the election. This of course looks like an election budget. It smells like an election budget. Is it an election budget and if so when is the election?
PRIME MINISTER:
[Laughs]
Well, the election will be next year in the first half of next year.
GEORGIE GARDNER:
When?
PRIME MINISTER:
It’ll be in the first half of next year when it's due to be held under the constitution. But Georgie…
GEORGIE GARDNER:
So you'll run the full term?
PRIME MINISTER:
Yes, that's right. Absolutely.
But what this is doing is delivering for Australian families. It's ensuring that they benefit from the strong economic growth that our national economic plan has been able to deliver. That's our commitment.
GEORGIE GARDNER:
Alright. And are you committed to leading the Coalition to that next election and beyond?
PRIME MINISTER:
Yes, of course.
GEORGIE GARDNER:
That's a guarantee.
PRIME MINISTER:
[Laughs]
Yes, absolutely.
GEORGIE GARDNER:
Still loving the job?
PRIME MINISTER:
I love it. I love it.
GEORGIE GARDNER:
Still got the passion, still got the drive?
[Laughs]
PRIME MINISTER:
Georgie, you know I do. You know I do. You know something the ability to guarantee essential services, build the infrastructure of the 21st century, put record funding by the way, into keeping Australians safe and into our defence sector, and both in term of our ADF and our national security. And at the same time be able to bring the budget back into balance and give hard working Australian families the opportunity to keep more of the money they have earned.
This is a great budget. But it is the product, the consequence of that stronger economic growth that our policies have enabled.
We're enabling and supporting the enterprise of thousands, millions of Australian businesses that are getting on and having a go. Investing. Employing.
We're backing Australian's enterprise. And they are benefitting from it with greater opportunities. That is what I have to deliver right now, in seven years time, and for children and grandchildren in the decades to come.
GEORGIE GARDNER:
Well, Prime Minister we appreciate your time this morning on a very busy morning. Thank you very much for being with us.
PRIME MINISTER:
Thanks Georgie.