MICHAEL BRISSENDEN: Prime Minister Malcolm Turnbull, welcome to the program.
PRIME MINISTER: You're very kind, thank you.
MICHAEL BRISSENDEN: Congratulations.
PRIME MINISTER: Thanks very much.
MICHAEL BRISSENDEN: It has become a bit of a cliche, obviously, but it has also become unfortunately a perennial question in Australian politics: Have you got blood on your hands and how do you overcome the criticism that you have now become exactly like the party you criticised?
PRIME MINISTER: The principle thing that we've got to focus on Michael is the demands of Australia in the future, today and in the future.
We've got to focus on the big challenges we face, how do we remain a prosperous first-world economy with high wages and a generous social welfare safety net.
That's why this is a 21st century government, a ministry focused on the challenges of the future, with the people and the skills and the priorities that will ensure that we remain prosperous.
MICHAEL BRISSENDEN: You've still got a bit of healing to do in the party though, haven't you?
PRIME MINISTER: Well it's -- political parties, there are disagreements in political parties, but you can see that this is a Cabinet of all the talents. There are people who have been promoted to the Cabinet who did not support me in the recent ballot. There are several very dear old friends of mine who have offered to stand down, and I accepted that, in order to make room for others.
So this has been, no-one could suggest that this has been, this Cabinet, this ministry, has been assembled on any basis other than merit.
MICHAEL BRISSENDEN: Okay. Scott Morrison, as expected, is Treasurer. Well, we all know that he's ambitious. Did you do a deal with him, and are we likely to have a, hear about a Kingston-style Kirribilli agreement some time in the future?
PRIME MINISTER: Scott will do a great job as Treasurer, and that's what we're focused on.
MICHAEL BRISSENDEN: So there's no back room agreement about any future leadership?
PRIME MINISTER: There is -- Michael honestly.
MICHAEL BRISSENDEN: I just want to put it on record because we do hear about these things...
PRIME MINISTER: I know, I know, I know, I know, but it's --
MICHAEL BRISSENDEN: You know two or three years down the track, we hear --
PRIME MINISTER: I know, but here we are with this wonderful new Cabinet, with brilliant younger people, with the first woman Defence Minister, with five women in a Cabinet that used to only have two and you --
MICHAEL BRISSENDEN: No, no, we will get to that.
PRIME MINISTER: You want to get into the Kingston agreement or whatever it is, I mean seriously. Let's focus on, everyone that's listening really wants to -- Look, we've got to change the paradigm, and that means politicians like me have got to change --
MICHAEL BRISSENDEN: Precisely.
PRIME MINISTER: And with great respect, distinguished journalists like you have got to change. We have got to talk about the real issues that affect people's lives, and that's, why don't we do that?
MICHAEL BRISSENDEN: Well let's do that. You've been a strong advocate for a republic, for same-sex marriage, for stronger action on climate change. So far, you've proposed no advancement on any of those issues - what's the point of being Prime Minister if you can't do what you want to do?
PRIME MINISTER: Well, let me say this: Dealing with all of them, in terms of same sex marriage, there is a process which will involve a plebiscite, a vote of the people after the election, and every Australian will have a say on whether they agree with it or not. So that will be resolved.
And just in case you're wondering I'll be voting for it, so I'll be voting yes. Many of my colleagues will be voting the other way, but that's cool, you know .We've got a divergence, or not a divergence, a diversity of views on that issue.
Climate change, we have a significant target for reductions, emissions reductions, 26 to 28 per cent, it's comparable to similarly situated countries.
MICHAEL BRISSENDEN: It's a policy you didn't agree with though when it was first proposed.
PRIME MINISTER: The policy that we have is a policy I absolutely did agree with, because it came out of the Cabinet. What you're referring back to is remarks I made many years ago about something that was quite different.
You know what we have now is a specific set of measures that was put together by Greg Hunt with great care. And really Greg did a superb job doing that. Those measures are able to enable us to cut our emissions by the 26 to 28 per cent target and they will do the job.
MICHAEL BRISSENDEN: So there won't be any changes to those policies?
PRIME MINISTER: Well, there will be changes to policies if they don't work as well as we think, or we think others can work better.
Again, none of this is written in stone, but my, what I'm saying is I don't have any plan to change those policies because everything we see at the moment suggests they're working very well.
MICHAEL BRISSENDEN: Okay, you were very critical of the economic direction under the Abbott government when you first announced your challenge. You're now talking about reform, particularly tax reform. Presumably a GST increase is in that mix, because real reform, presumably, you would assume real reform is impossible without a GST increase or changes to it somehow.
PRIME MINISTER: Well, you may very well say that but that's not necessarily the case. There are many levers in the tax system, many possible combinations of measures, and it's important that we look at all of them.
MICHAEL BRISSENDEN: Is that a lever you're going to look at?
PRIME MINISTER: Well, of course, you've got - let's get back to fundamentals. We have to lift our productivity. We have to be more innovative, more competitive, we have to be more productive. We've got to do that, because otherwise our living standards will decline. So that's the challenge ahead of us.
Now what we have to do as the Government is, and as the Cabinet and of course the governing party as a whole, all of our members and senators, we've got to look at all of the levers and measures we can use to improve incentives that make us more productive.
And you know, greater participation of women in the workforce, a more innovative business culture, better support and better outcomes for start-ups - there are a whole range of things we have to do and you've got to look at measures across the board.
And it's, you know, you can say that means you want to do x or y about the GST. That's not necessarily the case. There are many different approaches you can take.
You see the object is, and it's a bit like climate change issue. In climate change policy, the object is to cut emissions; economic policy, the object is to ensure a higher level of economic growth and higher living standards. That's the objective.
There are many different routes you can take. You've just got to choose one, or a series of routes, and then recognise that you must constantly monitor them and adjust if they're not performing as well as you think - this is a critically important point.
MICHAEL BRISSENDEN: Sure.
PRIME MINISTER: When governments change policies, it's often seen as a back flip, or a back-track, or an admission of error. That is rubbish. We've got to be agile all the time.
MICHAEL BRISSENDEN: On the policy front then.
PRIME MINISTER: Yes.
MICHAEL BRISSENDEN: There is one still stuck in the Senate, are you going to go and push ahead with uni deregulation?
PRIME MINISTER: Well the Cabinet will be considering that, that's certainly an issue that's on the agenda. I'm not saying what's on the agenda for Cabinet, I'm not going to do that, but on the general political agenda, it is one of the things to continue.
The Government's position is that reform of the higher education system to enable, really to promote excellence and greater diversity and choice in higher ed is very, very important. But, clearly, we've got political realities to deal with in the Senate and so we've got to --
MICHAEL BRISSENDEN: So it's possible that could change, you could change that position?
PRIME MINISTER: Well if you can't get something through the Senate, it is, I would say it's highly possible that you could change it to something that will get through the Senate. This is what John Howard calls the iron laws of arithmetic.
MICHAEL BRISSENDEN: There has been a noticeable rhetorical shift in the last week or so. You're asking Australians to make a pretty big leap from the death cult coming to get us, to now we're living in the most exciting time ever.
Now you have had all the briefings - presumably we do still have a national security problem?
PRIME MINISTER: Yeah, well, again Michael, this is a sort of a straw man you're setting up here. Of course we have national security challenges, of course we do. And we have great agencies, you know, in the police, the security services, the military indeed, working to ensure, to protect us.
And we have to be very aware of those challenges, and I'm keenly aware of those challenges and I've written and spoken about national security issues and strategic issues for a very long time.
MICHAEL BRISSENDEN: I guess my point is, were they overblown?\
PRIME MINISTER: Equally, equally, we are living in the most exciting time in human history. We're living in a time of rapidly expanding opportunities right across the world, there has never been a more exciting time to be an Australian.
We have - yes there are challenges, there always are. But overall the prospects for Australia are outstanding. Australians have every reason to be optimistic and excited about the opportunities that lie ahead.
MICHAEL BRISSENDEN: A couple of quick questions. Joe Hockey, he's resigned, well, he's offered his resignation.
PRIME MINISTER: No, Joe has said, he asked not be included in the ministry.
MICHAEL BRISSENDEN: But he's made it clear he's leaving the Parliament.
PRIME MINISTER: That's exactly right.
MICHAEL BRISSENDEN: Has he been offered the US ambassadorship?
PRIME MINISTER: I can't add anything more to what I said yesterday, that I expect that he has the capacity to serve the nation in the future.
MICHAEL BRISSENDEN: And are you going to live in the Lodge?
PRIME MINISTER: Well the Lodge, when it is finished, is the official residence of the Prime Minister and certainly that is where Lucy and I, when Lucy and I are in Canberra that's where we'll live, yes.
MICHAEL BRISSENDEN: Okay, Malcolm Turnbull, thanks very much for joining us.
PRIME MINISTER: Thanks very much.
MICHAEL BRISSENDEN: And that's Prime Minister Malcolm Turnbull.