- 1 year ago
Treasurer Jim Chalmers gives press conference
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TVTranscript
00:00...economy in the interests of our people.
00:04Global conditions will be the primary influence on our economy
00:09and on our choices in the government's second term.
00:12Because what we're dealing with is extreme global economic uncertainty
00:17compounded by conflict and trade tensions around the world.
00:22So our engagement is all about navigating a world
00:25where volatility and unpredictability are the norm,
00:29not the exception.
00:31And the way we see it is that the best defence
00:33against more uncertainty and more volatility
00:36is more engagement and more resilience.
00:39And that's our strategy when it comes to engaging with the world.
00:44It's why the Prime Minister's in China,
00:47it's why I'm off to the G20 this week,
00:49and it's also why our engagement is good for Australian workers
00:52and businesses and industries and our economy more broadly.
00:56The economy is the major focus of the Prime Minister's engagements in China.
01:02I'm conscious that he's up shortly,
01:05and so I'll say a few things about that,
01:08but leave it largely to him.
01:10There couldn't be a more important time
01:12to strengthen an economic relationship which is full of opportunity,
01:17but also not short of complexity.
01:20China is a really crucial part of our prosperity,
01:25and that makes it an important and obvious focus
01:28for our economic diplomacy as well.
01:31The G20 is another crucial opportunity for Australia to engage.
01:37We are big believers in multilateral engagement
01:40because Australia is a big beneficiary of global forums like the G20
01:47and also from free and open markets for our goods and services.
01:53I'll be heading to Durban this week,
01:55later in the week, for meetings on Thursday and Friday.
01:59I'll be participating in G20 discussions,
02:02but also meeting directly with my counterparts
02:05from Indonesia, Japan, Canada, the UK and Germany.
02:10And my focus at the G20 will be on strengthening economic ties,
02:15but also with a particular focus on capital flows,
02:18on supply chains, on critical minerals,
02:21and also dealing with the structural issues in our own economies.
02:25That's the focus of our international engagement in July,
02:29and it's also the focus of our reform roundtable in August.
02:33I have been really encouraged by the interest shown by my colleagues,
02:39by the regulators, by business and union leaders
02:42in the reform roundtable.
02:45Just over the course of the last couple of weeks,
02:48we've had a number of good discussions with Cabinet colleagues.
02:51I met with the Education Minister this morning
02:53about his contribution to the roundtable.
02:57I think I've written to more than 30 regulators now.
03:00I've had a good, long discussion with the head of the Business Council.
03:04I've had a good, long discussion with the leaders of the ACTU.
03:09And from those discussions, I am really encouraged
03:12and really optimistic that people will bring to the reform roundtable
03:17good, constructive ideas for how we build on the agenda
03:21the government is already rolling out,
03:23build on the progress that we've made together in our economy,
03:26and build consensus about the next steps forward as well.
03:31We've largely now finalised the structure of the agenda.
03:35Resilience, day one.
03:37Productivity, day two.
03:38Sustainability, day three.
03:41We've asked Michelle Bullock to kick off day one
03:44after the Prime Minister and I.
03:46We've asked Danielle Wood to kick off day two.
03:49And I'll ask Jenny Wilkinson to kick off day three.
03:53We're also finalising the next round of core invitations.
03:58I don't think it would come as a surprise to anyone
04:01who's seen the interest that people have shown in the roundtable
04:04that it is difficult to narrow that down.
04:07We can't have every industry or every interest represented individually,
04:13but the major peaks will be there.
04:15There'll be other opportunities for people to contribute.
04:18And again, my ministerial colleagues are doing a terrific job
04:21hosting their own reform roundtables
04:23to gather ideas and priorities in their own portfolios.
04:29Those roundtables have already begun,
04:31but the pace of those will quicken between now
04:34and towards the end of August
04:37when we host the roundtable next door.
04:42So a huge week for international engagement,
04:44really important week to feed into our other considerations
04:46when it comes to economic policy.
04:49Happy to take some questions about any or all of that.
04:51We'll just impose some water here and go here and then Jack.
04:54You've always spoken about the importance of
04:57and value of independent advice.
05:00Treasury says you can't fix the budget
05:02without raising taxes or slashing spending.
05:06So are you open to this advice?
05:08Well, a couple of things about that.
05:09I mean, first of all,
05:10you're responding to some headings in the advice
05:13that we've got in the incoming government brief.
05:16Obviously, Treasury advises governments
05:19of both political persuasions.
05:21That advice can't be always adequately captured
05:24in the subheadings which are reported
05:26in documents which are sent in error.
05:30And what's happened here is a Treasury official
05:32has sent those documents in error.
05:35That sort of thing happens from time to time.
05:37I'm pretty relaxed about it, to be honest,
05:39because, of course, Treasury provides advice
05:42for incoming governments
05:43and no government typically goes into the detail of that.
05:48The other reason I'm pretty relaxed about it
05:50is we've already made it really clear
05:52that we will need to do more to meet our housing targets.
05:56We've already made it really clear that we will do more
06:00to make our economy more productive and more resilient.
06:04We have made it clear that we need to build
06:07on the progress we've made in repairing the budget
06:10so that we can make the budget even more sustainable.
06:14So the priorities which are being reported today are not...
06:19You know, those are the sorts of things
06:21that I have mentioned before,
06:22including at the National Press Club.
06:24I gave a whole speech on how we need to do more
06:27to meet our housing targets.
06:28We do need to do more to make our budget more sustainable
06:30and our economy more productive.
06:32Do you need to raise taxes?
06:34Look, we've made it clear
06:35over the course of the first three years in government
06:39that the substantial progress that we've made
06:42in repairing the budget
06:43comes from all different categories of effort.
06:48You know, for example,
06:49I increased taxes in the PRRT
06:52so that Australians got a bigger return sooner
06:55for offshore gas.
06:57That's not unusual.
06:58We combined that with spending restraint,
07:01banking most of the upward revisions to revenue.
07:04We combined that with $100 billion
07:06in savings in the budget as well.
07:09And so when you make the kind of progress
07:11that we've made on budget repair,
07:12two surpluses,
07:14the biggest ever nominal turnaround in the budget
07:16in a single parliamentary term,
07:18getting the Liberal debt down by $170 billion,
07:21that always involves a combination of measures.
07:26We've shown in our first term
07:27an ability to deploy all three of those things.
07:31Now, when you ask me about tax reform more broadly,
07:35what we've asked people to come to the roundtable with
07:37is ideas which are broadly budget neutral or better.
07:41And people will come with all kinds of suggestions
07:44about how changing one tax over here
07:48will make it possible to cut taxes over there.
07:50That is in lots of ways the essence
07:52of the tax reform
07:55that a lot of people who will come to the roundtable
07:57are grappling with.
07:59So again,
08:00I don't think it's particularly surprising
08:02that Treasury provides advice to
08:04in their incoming government brief.
08:07I don't think it's particularly surprising
08:08that the Treasury has highlighted,
08:10as I have personally,
08:11that we need to do more
08:13to make the budget more sustainable.
08:15No, we're going to go here, Greg, to Jack,
08:16and then we're going to go to Shane.
08:17I'll come back to you.
08:18Treasury, we've seen the iron ore price
08:20rally in the last three weeks.
08:21It's almost at US$1 a tonne now.
08:24Do you think this is, I guess,
08:25this rally in the last few weeks,
08:26do you think that's something that can be sustained
08:27or do you think the headwind space
08:29in the Chinese economy will mean,
08:31you know, we'll see a drop off again?
08:32And I guess if so,
08:33what are the implications
08:34for the federal budget?
08:35Yeah.
08:35Look, there are good reasons
08:36why I don't, you know,
08:38try and forecast, you know, on my own.
08:40The iron ore price,
08:42we've got conservative assumptions
08:45about iron ore in our budget.
08:47Those assumptions are provided by the Treasury.
08:50There has been a very modest ticker
08:52in the iron ore price in recent times,
08:54but it's been below the glide path
08:56in our budget at different times
08:57over the last little while as well.
09:00There's volatility in commodity prices,
09:02copper, oil, gold,
09:06and other commodities as well
09:07and we're seeing that in iron ore too.
09:10Our iron ore industry,
09:12our exports,
09:13make a really valued
09:15and important contribution
09:16to our economy,
09:18to our labour market,
09:19to our budget.
09:20We're big supporters
09:20of the resources sector.
09:22It's why the Prime Minister
09:23is convening today
09:24a meeting of the major iron ore exporters
09:27with the Chinese steel industry.
09:29And we expect,
09:31we're optimistic,
09:32that iron ore will continue
09:33to make a big contribution
09:35to our export offering
09:37and to our economy more broadly.
09:40Prices will bounce around a bit
09:41and that's why we have
09:42those conservative assumptions.
09:43Shane?
09:44Treasurer,
09:44if the states were able
09:45to come up with their own
09:47GST reform plan
09:48to your round table,
09:49would you be open to it?
09:51And do you believe
09:51that GST regulation,
09:55where tiram sures treat
09:56differently to cheesecake?
09:58Is that a sign
10:00that the tax system
10:01is too complex
10:02in that space?
10:04Well, I think the,
10:05both the Prime Minister
10:06and I have made it pretty clear
10:07when it comes to the GST,
10:09we've had a view
10:09about that historically
10:11and that view hasn't changed.
10:13We've tried not
10:14to artificially limit
10:15the ideas
10:16that the states or others
10:17will bring
10:18to the reform round table.
10:20We've tried to have
10:21a relatively open mind,
10:23but you've all heard me
10:24talk about the GST before
10:25and you all would have noticed
10:26what the Prime Minister
10:27said about the GST
10:28in the last few days
10:31and those views
10:32haven't changed.
10:33Now, when it comes
10:33more broadly
10:34to complexity
10:35in the tax system,
10:36of course,
10:37we are interested
10:39in ways to simplify
10:40the tax system.
10:42When we speak
10:43with tax experts
10:44and people that have
10:45a view about tax reform,
10:47they're interested
10:48in efficiency
10:49and equity
10:50and simplicity
10:52and other design principles
10:55like that
10:56and so ideally
10:57people will come
10:58with views
10:58about how we simplify
10:59the tax system
11:00and where that fits
11:01more broadly
11:01into our efforts
11:03on productivity,
11:04the engagement
11:04I've had with our regulators,
11:06the views that we've
11:07expressed publicly
11:08is if there are ways
11:10that we can simplify
11:11and consolidate
11:12regulations
11:14in our economy,
11:15then that would be
11:16a good thing
11:16for productivity as well
11:17so long as we don't
11:18trade away reasonable standards
11:20and protections for people.
11:21We'll go to Mike
11:22and then we'll go to Matt
11:24and then Phil
11:24and then Tom.
11:26We'll come back to you.
11:27Just on the potential
11:28or consideration
11:29of a road user charge
11:31that could be applied
11:32to electric vehicles,
11:34EV sales,
11:36the EVs only comprise
11:37like 808%
11:39of the car market
11:40at the moment
11:41and transport emissions
11:43continue to trend up.
11:45I'm just wondering
11:46if you're factoring
11:46in the potential
11:47for a road user charge
11:49to stymie growth
11:50and have you discussed
11:51the issue
11:52with Minister Bowen?
11:54Well, that wouldn't
11:55be the intention
11:56of reforming
11:58that part of the tax system.
11:59I think it's been clear
12:00for some time
12:01that over time
12:02there'll be disagreements
12:03about how long
12:04it will take
12:04but over time
12:05the use of fossil fuels
12:09in our car fleets
12:11will come down
12:12and EV use will go up.
12:14We've seen that
12:15and we're making
12:16a contribution to that
12:17with our policies
12:17and that will have
12:18implications
12:19for the tax base
12:20and again
12:21I've tried to be up front
12:22with people
12:22really for some months now
12:24engaging with the states
12:26engaging with the sector
12:27you know
12:28I had a discussion
12:29with the Transurban Board
12:30the other day about this
12:31I've had discussions
12:32with Catherine King
12:33and Chris Bowen
12:34about this over time
12:35you know
12:36this is not a new development
12:37and our interest
12:39in seeing what can be done
12:40over the medium
12:41and long term
12:41is not a revelation either
12:44we flagged that
12:45for some time.
12:46Matt then Phil
12:46then Tom.
12:47Press Club
12:47you mentioned
12:48tax as a percentage
12:50of GDP
12:51is lower than
12:52your spending
12:53as a percentage
12:54of GDP
12:54are you happy
12:57for that
12:58to stay
12:59the way it is
13:00do you think
13:01that the spending
13:02as a percentage
13:03of GDP
13:04would need to change
13:06and can you point out
13:07anything specific
13:08that might need
13:09to be lowered
13:10you know
13:108% spending growth
13:12in NDIS etc
13:13and then just
13:15secondly
13:15the Treasury
13:16advice mentioned
13:18building on super
13:19as part of
13:21referral reform
13:21as well
13:22will that be
13:22something important
13:24to bring up
13:25in the economic
13:26reform roundtable?
13:28Well in reverse order
13:28I think other people
13:29might bring that up
13:30that's not been
13:31something we've been
13:31working on
13:32our focus has been
13:34on the changes
13:35that we announced
13:36two and a half years ago
13:37on tax to GDP
13:41our tax to GDP
13:42is lower
13:42than under
13:44John Howard
13:44our opponents
13:46say that John Howard
13:47was the gold standard
13:48our tax to GDP
13:50is lower
13:50when it comes
13:51to spending
13:52to GDP
13:52when we came
13:54to office
13:55spending to GDP
13:55was about a third
13:56of the economy
13:57we got it down
13:57to about a quarter
13:58of the economy
13:59it settled around
14:0026, 27
14:01partly because
14:03of pressures
14:03from the care economy
14:04and other pressures
14:05and what I tried
14:06to make clear
14:06at the press club
14:07is that we've done
14:10a lot to make
14:11the budget
14:11more sustainable
14:12whether it be
14:13the NDIS
14:14interest costs
14:15aged care
14:16and in other areas
14:18100 billion dollars
14:19of savings
14:20couple of surpluses
14:21the big turnaround
14:22in the bottom line
14:23all of those things
14:25are making a helpful
14:25contribution
14:26to budget sustainability
14:27but we need to look
14:29for ways to do more
14:30and again
14:30that's not a new thing
14:31you know
14:32in all four of my budgets
14:33working with Katie Gallaher
14:35there's been a combination
14:37of savings
14:39spending restraint
14:40tax changes
14:41because we want
14:43to make sure
14:44that part of our
14:45intergenerational
14:45responsibilities
14:46is making the budget
14:47more sustainable
14:48where we can
14:49people will bring
14:50all kinds of ideas
14:51to the reform round table
14:52and that's a good thing
14:53Phil then Tom
14:54thanks Treasurer
14:55on the super bill
14:57Parliament's back
14:57next week
14:58is it a priority
14:59to get it through
15:00at least the lower house
15:01in the next couple of weeks
15:03and have you
15:04in your office
15:04yet begun talks
15:05with Nick McKim
15:06as you flagged
15:07would happen in July
15:08yeah
15:08as I understand it
15:09we're working with
15:10his office
15:11to find a time
15:12they have been
15:14very constructive
15:15about it
15:16privately
15:16and publicly
15:17in the discussions
15:18between the offices
15:18I haven't had
15:19a direct conversation
15:20with Senator McKim
15:22as yet
15:23I'm grateful
15:24for the
15:25constructive approach
15:26that they have
15:27flagged publicly
15:28the start of Parliament
15:30is pretty congested
15:31with lots of demands
15:32on everybody's time
15:34we will have a discussion
15:36at some stage
15:37recognising that
15:38we can't pass
15:39legislation in the Senate
15:40on our own
15:41but it won't be
15:43the first bill
15:43that we introduce
15:44into the Parliament
15:45the Prime Minister
15:46has already made that clear
15:47that that will be
15:48student debt relief
15:48but will we see
15:49it the next fortnight
15:50in some shape
15:51or forming
15:51to the House of Reps
15:52we haven't taken
15:53a decision on that yet
15:54there'll be discussions
15:56to be had
15:56with the colleagues
15:57and with the crossbench
15:58but we've already
16:00indicated that
16:01our legislative priority
16:02in the first week
16:03coming back
16:03is student debt relief
16:04Tom
16:05I will come back
16:06to you guys
16:07you don't have
16:07it'll be fine
16:08I'll come back to you
16:08Tom
16:09thanks Treasurer
16:09I think the incoming
16:10Government brief
16:11makes an assessment
16:12of the Government's
16:13policies
16:13your election commitments
16:14and then gives advice
16:15about implementation
16:16but this one says
16:17that the housing target
16:18would not be met
16:19what gives
16:22it seems like
16:23the challenges
16:24in the sector
16:24are too great
16:25for the Government's
16:25policy
16:26yeah
16:27I mean first of all
16:27you're responding
16:28to a subheading
16:29in a document
16:30a partial
16:30no
16:31you're referring
16:33to a
16:33well Governments
16:34don't release
16:34the incoming
16:35Government brief
16:36it's been released
16:37in error
16:37and that's
16:38you know
16:38these things happen
16:39from time to time
16:40as I said before
16:41I'm pretty relaxed
16:42about it
16:43but you are responding
16:44to a partial
16:46release
16:47the point
16:48that the
16:49incoming Government
16:50brief makes
16:51is the same
16:52point that I've
16:52been making
16:53Claire O'Neill
16:54and others
16:54have been making
16:55is that we will
16:56need more effort
16:56to reach that
16:58substantial
16:58ambitious
16:59housing target
17:00and we're
17:03investing tens
17:04of billions
17:04of dollars
17:05we're working
17:05well with the
17:06states and territories
17:07and local governments
17:08we're engaging
17:09with the industry
17:10we're trying to get
17:11the capital flowing
17:12I've changed
17:12the tax arrangements
17:14for build to rent
17:15there are a whole
17:16range of things
17:16that we're doing
17:17and that Claire
17:18is doing
17:18which will make
17:19an important
17:20contribution
17:21to achieving
17:21that target
17:22but we'll need
17:23to do better
17:23and we'll need
17:24to do more
17:24and the advice
17:25just reflects that
17:26we'll go there
17:27and then come back
17:27to Jacob
17:28do you still believe
17:29the target
17:29can be met
17:30yes
17:31there was another
17:34famous target
17:35in your first term
17:36which the opposition
17:37beat you over the head
17:38with at every opportunity
17:40on electricity prices
17:41and how much
17:42they would fall by
17:43was it a mistake
17:44to put a housing
17:45target out there
17:46like this
17:47that your own
17:48department now
17:49says won't be met
17:49no I don't believe so
17:51we have to be ambitious
17:52in housing
17:53and we are
17:54and you know
17:57I think it would be
17:57strange
17:58if a government
18:00like ours
18:00saw the obvious
18:03challenges in housing
18:04and decided
18:07anything other
18:08than to try
18:09and be ambitious
18:09about building
18:10many more homes
18:12for people
18:12and you know
18:15I find it strange
18:16that people want
18:17to limit
18:18our ambition
18:19when it comes
18:19to housing
18:20you know
18:21we'd rather have
18:21a big
18:22ambitious
18:22difficult target
18:24and work around
18:25the clock
18:26to meet it
18:26in all of the ways
18:27that I've run
18:28through today
18:29than to continue
18:30the approach
18:31of our predecessors
18:32which was to build
18:33too few homes
18:34and you know
18:37it's not the worst
18:37thing from time
18:38to time
18:39for it to be
18:41understood
18:42in the broader
18:42community
18:43that this will be
18:43a difficult target
18:44to meet
18:45but if we all
18:45do our bit
18:46we all play our
18:47part
18:47as the Commonwealth
18:48has been willing
18:49to play
18:49then we can build
18:51the homes
18:52that people
18:52desperately need
18:53it's one of the
18:54defining challenges
18:54in our economy
18:55and we're ambitious
18:57when it comes
18:57to trying to solve it
18:58Charles
18:59and then Katina
19:01Charles then Katina
19:02and then we'll
19:02come around the front
19:03The Prime Minister
19:04was clear during
19:04the election campaign
19:05that he would stake
19:06his job
19:06on increasing
19:08the rate of bulk billing
19:09given that
19:10the only people
19:11limiting the ambition
19:12on housing
19:13is the housing minister
19:14and the targets
19:14put out there
19:15should there be
19:16more accountability
19:16to yourself
19:17to the housing minister
19:18if those targets
19:19aren't met
19:20Well first of all
19:21we're talking about
19:21a target which is
19:22still four years away
19:24and we acknowledge
19:26as we have publicly
19:27on a number of occasions
19:28that we need
19:30to do more
19:31and we need
19:31to do better
19:32to hit that target
19:33in four years time
19:34Now we take
19:36responsibility
19:36for all of our efforts
19:38whether it's
19:39bulk billing
19:40whether it's
19:40the housing target
19:42or in other areas
19:43and again
19:43it comes a bit back
19:44to the question
19:45that Jake asked me
19:45before
19:46We're an ambitious
19:48government
19:48We set ambitious goals
19:50and we work very hard
19:51to achieve them
19:52and I think
19:53that that's what
19:54the Australian people
19:55expect of us
19:56Katina
19:56Thanks Treasurer
19:58you mentioned
19:59just briefly
19:59about the G20
20:00meeting
20:01critical minerals
20:02will be
20:02on the agenda
20:03Now the G7
20:05agreed on
20:06a deal
20:07to basically
20:07speed up
20:08diversifying
20:10supply chains
20:11Quad foreign ministers
20:12meeting
20:12came to some
20:13sort of similar
20:14agreement
20:14Are you looking
20:15to do something
20:16like that
20:17through the G20
20:18whether it's now
20:18or at the leaders
20:19meeting later on
20:20and how difficult
20:20is that
20:21given that China
20:22is a member
20:22of the G20
20:23Yeah so while
20:24I'm in South Africa
20:25one of the discussions
20:26will be
20:26to build on the work
20:28of the G7 plus
20:29so we'll use that
20:31really as the foundation
20:32for the discussions
20:34that we'll have
20:35with a number
20:35of colleagues
20:36and counterparts
20:36There's a specific
20:39discussion
20:40of G7 plus
20:41colleagues
20:41around this issue
20:42and what I would
20:44like to try and do
20:45there's the resilience
20:46of the supply chains
20:47but there's also
20:47the capital flows
20:48part of the story
20:49and for me
20:50as Treasurer
20:51that's a big focus
20:52of my efforts
20:52and you'll hear
20:53more about that
20:53through the course
20:54of the week
20:55You two
20:55and then Tom
20:56and then Greg
20:56Yeah
20:58Hello
20:59My name's April
21:00I'm from Nine
21:00Do you have any
21:01response to the
21:02tariffs announced
21:03over the weekend
21:03to the EU
21:04and Mexico
21:05and has any
21:06progress been made
21:06between
21:07meeting between
21:08Trump and
21:09our Prime Minister
21:09to discuss this
21:11Yeah
21:11Look first of all
21:14there's been no
21:14change to our
21:15baseline tariffs
21:16when it comes
21:17to the US
21:19but I think
21:20it's clear
21:21that every week
21:22brings new
21:24developments
21:24new uncertainties
21:25and over the weekend
21:26we saw
21:27more of that
21:29We work our way
21:30through the consequences
21:31for us
21:32of these sorts
21:33of announcements
21:34which come
21:35from time to time
21:37When it comes
21:38to engaging
21:39with the US
21:41we're engaging
21:42at a number
21:42of levels
21:43The Prime Minister
21:43has already had
21:44three conversations
21:45with President Trump
21:46I've had three
21:47conversations
21:48with my counterpart
21:48Secretary Besant
21:50Minister Wong
21:51was meeting
21:52with Secretary Rubio
21:53the last week
21:55or two
21:56So we're engaging
21:57at a whole range
21:58of levels
21:59with our
22:01American counterparts
22:02but also in China
22:03at the G20
22:03really wherever
22:04and whenever we can
22:05Special Envoy
22:07to Antisemps
22:08Jillian Siegel
22:09has been found
22:09to
22:09her husband's
22:10been tied
22:11to donations
22:11to advance
22:12and we've seen
22:13calls from some
22:14community groups
22:14that she should
22:15resign from her position
22:16What's your response
22:16to that?
22:18Well as I understand
22:20it
22:20as I understand
22:25that she's made
22:26comments about
22:27this herself
22:27and she's addressed
22:30this issue
22:31publicly
22:32and I see it
22:33really as a matter
22:34for the envoy
22:35we are taking
22:37substantial steps
22:38to crack down
22:39on this
22:41disgraceful
22:42escalation
22:43in anti-Semitism
22:44that we're seeing
22:45in our society
22:45we're already
22:46taking a number
22:47of steps
22:47and the envoy
22:48has provided us
22:50with some suggestions
22:51and ideas
22:52proposals
22:52for what else
22:54might be considered
22:55we're working
22:55our way through that
22:56but when it comes
22:57to donations
22:58made by
22:59her husband
23:00to that
23:02organisation
23:02she's addressed
23:04this publicly
23:04on the record
23:05and I see that
23:07as a matter
23:07for her
23:08Tom?
23:09Treasurer
23:09how concerned
23:10are you
23:11about the scenario
23:12that Treasury
23:12has modelled
23:13that involves
23:14the loss
23:15of the US dollar
23:15of the global
23:16reserve currency
23:17and the independence
23:17of the Fed
23:18and secondly
23:18just for the record
23:19that subheading
23:20in full
23:21on new homes
23:21says that the
23:221.2 million
23:23new homes target
23:24will not be met
23:25it's about as
23:26unambiguous
23:26as any of the
23:27headings get
23:28so are you saying
23:28that your department
23:29is wrong on that?
23:31Well Tom
23:32I've read the
23:33incoming government
23:34brief
23:34I don't need
23:35reminding of what
23:36it says
23:37I read it on the
23:38Sunday after the
23:39election
23:39and subsequently
23:41as well
23:41and what you've
23:42just pointed out
23:43is not inconsistent
23:43with the question
23:44that I answered
23:45I think from Tom
23:46a moment ago
23:47and the point
23:50that the Treasury
23:51is making
23:52the point that I
23:53understand and
23:54accept
23:55is that the
23:56government will
23:56need to do
23:57better and do
23:57more
23:58to meet that
23:59target
24:00under current
24:01trajectories
24:02we would fall
24:04short
24:05but that doesn't
24:06mean that between
24:07now and over the
24:08course of the next
24:09four years
24:09that we can't
24:11consider ways
24:11and work
24:12with the
24:12states
24:12and territories
24:13and others
24:14local governments
24:14and others
24:15on ways to
24:17build more
24:17homes
24:17and I can
24:18tell you
24:18having discussed
24:20this and met
24:20with Minister
24:22O'Neill
24:22a number of
24:23times since
24:24the election
24:24that her
24:26highest priority
24:27is working
24:27out what we
24:29need to do
24:29differently
24:30and better
24:30in our
24:31current
24:31ambitious
24:32suite of
24:33housing
24:33policies
24:33to meet
24:34this ambitious
24:35target
24:36now when it
24:37comes to
24:37the part
24:38of the
24:38incoming
24:39brief
24:39about
24:39international
24:40conditions
24:41you know
24:42I welcome
24:42and I encourage
24:43the Treasury
24:43to think about
24:44best and worst
24:45case scenarios
24:46I've always
24:47been like that
24:48since I've been
24:48Treasurer
24:49and last time
24:50I was working
24:50in this portfolio
24:51because I believe
24:53if you
24:54consider worst
24:55case scenarios
24:56it gives you
24:56a better chance
24:57to work through
24:57them if they
24:58eventuate
24:59it's the approach
24:59we took
25:00the global
25:00financial crisis
25:01it's the approach
25:02we take now
25:03we've got to
25:04recognise this
25:04is the fourth
25:05big economic
25:06shock in less
25:07than two
25:07decades
25:07it would be
25:08strange
25:09if Treasury
25:10wasn't advising
25:11me on the
25:12worst case
25:12scenarios
25:13whether it's
25:13about bond
25:15markets in the
25:16US
25:16currency exchanges
25:17or other
25:18challenges to
25:19the global
25:20system
25:20as I made
25:20clear at the
25:21very beginning
25:21this global
25:23economic uncertainty
25:24is really the
25:25primary influence
25:25on the
25:26government's
25:26second term
25:27it's the
25:28thing that
25:28is most likely
25:29to constrain
25:30our choices
25:31and guide
25:31and shape
25:32our choices
25:33and so I
25:34think what
25:35you're seeing
25:35in those
25:36headings
25:37released under
25:37the FOI
25:38is really
25:40the Treasury's
25:42best attempt
25:42at working
25:44out a whole
25:44range of
25:45scenarios
25:45I appreciate
25:47that
25:48I'm grateful
25:48for that work
25:49that they do
25:49because it
25:50helps me
25:50think through
25:51various scenarios
25:52even if we
25:53think that the
25:54chances of that
25:55happening are
25:55remote
25:55Greg
25:56You've made
25:58the point
25:58Treasurer
25:58that taxes
25:59and percentage
26:00of GDP
26:01is lower
26:01than under
26:02the Howard
26:02government
26:03and you've
26:03also made
26:04the point
26:04you put it
26:05out there
26:06in your speech
26:06that tax
26:07as Matt
26:07said
26:07tax as a
26:08percentage
26:08of GDP
26:09was lower
26:10than spending
26:11so is it
26:13your view
26:13that as part
26:14of the reform
26:15process
26:15tax as a
26:17percentage
26:17of GDP
26:18would need
26:18to increase
26:19to make
26:20the budget
26:20more sustainable
26:21I'll give you
26:22exactly the same
26:23answer I give
26:23to your question
26:24that I gave
26:24to Matt
26:24a moment ago
26:25thanks very much
26:26thank you
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