KARL STEFANOVIC:
The Prime Minister joins us now live from Canberra this morning. PM good morning to you.
PRIME MINISTER:
Good morning Karl. The tax reform is a great win for Australian families. They can keep more of the money that they've earned.
KARL STEFANOVIC:
How does it feel to win another term?
PRIME MINISTER:
Karl, I can't tell you how pleased I am that we've been able to put more money, more of their money, keep it in the pockets of hard-working Australian families. That tax reform is a win for Australian families. Fairer, simpler, lower taxes. It’s a great win for them.
KARL STEFANOVIC:
But it must feel good to win another term?
PRIME MINISTER:
Karl the election is next year, just by the way.
KARL STEFANOVIC:
[Laughter]
How did you celebrate getting opportunity to give our money back?
PRIME MINISTER:
Well, last night I was watching the Socceroos, but you know, this is a win for Australian families. You know this means a family with a mum and dad both earning sort of middle incomes salaries, you know, $75,000, $80,000, will be getting over a thousand dollars more money back from the taxman next year.
So that's an achievement in the here in the here and now. From next financial year, it begins on July 1 obviously, but over the longer term did you get out to 2024/25, we'll have a tax system that is massively reformed. So, from $41,000 all the way up to $200,000, for every extra dollar you earn, you won't pay more than 32.5c tax. So, if we get rid of a whole tax bracket, it results in a tax system that is fairer and simpler and encourages and rewards aspiration.
KARL STEFANOVIC:
Are you sure we can afford it?
PRIME MINISTER:
Absolutely, it's all the Budget. I mean I've heard the Labor Party say: “Oh we can't afford it.” It is all budgeted for. The Budget is coming back into balance a year early. It's not the next financial year but the one after, 2019/20. So we will bring it back into balance a year early and in fact net debt is peaking this financial year at 18.6 per cent of GDP. Then it starts to come down, year after year over the next decade. So, we've turned the corner on debt.
So, we're guaranteeing essential services, health, education infrastructure, defence, national security.
We're bringing the Budget back into balance a year early and living within our means and hard-working Australian families are able to retain more of the money they earn. It’s their money, not the government’s.
KARL STEFANOVIC:
You must be bursting with pride and joy this morning. I can see it on your face.
PRIME MINISTER:
Thank you. Well I’m glad you can. I can't see you but I'm sure you're filled with joy too.
KARL STEFANOVIC:
So what about Pauline Hanson? She seems to be filled with joy as well, she must be your new best friend, where are you two having fish and chips tonight?
PRIME MINISTER:
[laughter]
Well, I look forward to catching up with her again soon.
KARL STEFANOVIC:
I bet.
PRIME MINISTER:
But look, you know we work respectfully and constructively with the crossbench and I want to thank all of the crossbench that voted for the bill, including Pauline for their support. They recognise this is a win for hard working Australian families. It's a win for those middle income Australian families that the Labor Party has abandoned. The Labor Party used to be, used to claim to be anyway, the party of aspiration. Now according to Tanya Plibersek, aspiration mystifies them.
KARL STEFANOVIC:
Okay the nature of the beast is, we keep moving. Next, how concerned are you about company tax cuts? Is Pauline going to support the changes?
PRIME MINISTER:
We just keep on plugging away, making our case in the Senate, Karl. We’re always asked to give predictions and people often tell us what’s going to happen. Sometimes the outcomes are different to what’s predicted, just as it was with the personal income tax. So, we’ll just keep on making our case.
KARL STEFANOVIC:
These will be a bit harder, won’t they?
PRIME MINISTER:
We’ll just keep on making our case. We’re consistent and persistent and hopefully persuasive.
KARL STEFANOVIC:
OK, the other crossbenches how confident are you?
PRIME MINISTER:
Again we just respect them, we work with them and we'll keep doing that. We'll find out when the vote is held. It's like you don't know until the end of the match.
KARL STEFANOVIC:
Alright, overseas briefly, what are your thoughts on Donald Trump's brutal border policy? His own wife and daughter have a pretty strong feelings on it. How do you feel about it?
PRIME MINISTER:
Well I don't comment on the domestic politics in other countries. But all I can say is that from Australia's point of view, we have a very strong border protection policy. You know, the Labor Party outsourced our borders to people smugglers and we had at least 1,200 people drowned at sea and 50,000 arrivals.
Here in Australia we have one of the most generous refugee and humanitarian programs in the world. The reason we can do that, is because we decide the Australian Government decides, representing the Australian people, who comes to Australia, not people smugglers.
KARL STEFANOVIC:
You never separated families though. You must have an opinion on it?
PRIME MINISTER:
Again, I don't buy into the domestic affairs of other countries. I don't run a commentary on other people's internal affairs, for obvious reasons, I’m the Prime Minister of Australia, not an international political commentator.
KARL STEFANOVIC:
Would you separate families at the border?
PRIME MINISTER:
Well as you know, we don't have any children in detention in Australia. Labor had plenty, had thousands of children in detention at one point in Australia.
What we've been able to do is, of course, by stopping the people smuggling, stopping the unlawful arrivals, we have a system which is very generous, it's humane. Families are obviously together where people are detained temporarily before then they go back to their home countries. But the bottom line is that we've got a compassionate, secure well-managed immigration system.
That's because we've been able to restore the integrity of our borders, which would be put at risk if Labor were to come back into government. Because they did it once before.
KARL STEFANOVIC:
OK a couple of lighter topics to air if you don’t mind? Can I beg your indulgence, it was a big night for the Socceroos last night. They just need Julie Bishop up front to kick some goals overseas, don’t you reckon?
PRIME MINISTER:
Oh I recon Mile did very well. Who do you reckon has got the best beard, Mile or Bachar Houli?
KARL STEFANOVIC:
I thought you were going to say something about the Foreign Minister there.
[Laughter]
PRIME MINISTER:
I was talking to Mile about his beard and he said…
KARL STEFANOVIC:
He’s a legend.
PRIME MINISTER:
Well, what a great goal. A great goal last night. But I said: “You’ve got a great beard, you and Bachar Houli have got the two best beards.”
He said: “Yeah, I recon he puts more effort into his.”
KARL STEFANOVIC:
If we get though the next round, will you give Australia a day off?
PRIME MINISTER:
[Laughter]
Well I think let’s just focus on, we’ve got to now beat Peru. I think we’ve got to have another game go very well, but the complications of the World Cup…
KARL STEFANOVIC:
Indeed –
PRIME MINISTER:
Yeah –
KARL STEFANOVIC:
A lot there, it’s like getting tax through the Senate. In the meantime, great news -
[Laughter]
PRIME MINISTER:
Well, maybe Mathias Cormann is the one who should be playing, he should he heading over there for the next game.
KARL STEFANOVIC:
Alright, great news for our New Zealand counterpart too, Jacinda Ardern.
PRIME MINISTER:
Yeah.
KARL STEFANOVIC:
Your New Zealand counterpart gave birth to a beautiful baby girl yesterday. Have you extended Australia's well wishes? Are we sending her a present. The Wallabies perhaps.
PRIME MINISTER:
[Laughter]
Well look, she’s got a little baby girl - a wee baby girl as they say in New Zealand – and Lucy and I sent Jacinda and Clarke a note yesterday, we got lovely reply back and we look forward to introducing their new daughter to our grandchildren.
KARL STEFANOVIC:
PM, you’ve got a glow about you today.
PRIME MINISTER:
Have I? Well, that’s great, that’s terrific. It might be because it’s minus something outside in Canberra. Very cold down here.
KARL STEFANOVIC:
You got some tax through too, obviously been working pretty hard. We appreciate your time today, as always.
PRIME MINISTER:
Yeah thanks Karl, good on you.
[ENDS]