00:02At least now we have some clear debates around some of the big economic issues that confront
00:08Australia. And that was very clear from the two speeches this week, from the Treasurer
00:13and the Opposition Leader, two sort of different visions of the way of going about enacting
00:20change to keep us competitive and to keep us attractive. You know, industry knows we're
00:25about to go through some very tough times over the next few months as the implications
00:31of the Strait of Hormuz blockade play out. We're starting to see that. And that's going to mean
00:37that our economy is going to go into some choppy waters. You saw the Treasury revise down our growth
00:43forecast. So now we have two visions, two visions around tax, two visions around how the country is
00:49made up. And that's good for democracy. We'll deal with the government and what it's
00:55proposed and what it's proposing in the meantime. And there's a lot there to work with. There's
01:02a lot there to work with the government around quite a few key areas which are going to be vital
01:07to our economic success going forward. One of the main themes that we heard from
01:12Angus Taylor last night was this tie of migration to the number of homes Australia is building.
01:20Do you think Australia's migration intake should be linked to the number of homes in the country?
01:26Well, the first point is this, Melissa, is that Australia's migration levels should never just be
01:32a set and forget. They are a key economic driver and a key economic lever. So they need to be
01:39continually checked and adjusted up and down according to circumstances. What is sacrosanct here is that
01:46our levels of skilled migration need to remain around where they are. They're about right now.
01:53If we don't get the skilled migration we need as a component of the overall migration levels,
01:59then we're not going to build the houses that we need. We're not going to be able to deliver on
02:03things
02:03like the Brisbane Olympics in 2032 because of the skills that are required there and across the country.
02:10We're not going to get the renewable energy rollout that we're after. We're not going to be able to do
02:17a whole lot of things unless we do bring in skilled migrants. And those skills range from anything from
02:23abattoir workers through to high tech workers. We're short in skills in a whole range of areas. They plug gaps
02:29in our economy. They fill business needs where there aren't the domestic skills available or capabilities
02:35are there. So, you know, that's step one. That's crucial for us. There is a debate around housing
02:42and we are falling short of the housing targets that we're aspiring to. And that's in large part
02:48because we don't have the skilled labour that we need to do the construction. It's also a range of other
02:53factors like supply chain disruption, product disruption, inflation and the like. But if we don't have
03:01the skilled workers, we're not going to achieve it. Yeah, you've sort of touched on it there. The
03:06coalition has suggested capping certain visas. Are there any, in your view, that should not have limits
03:13placed on them? Well, I think, you know, there's two ways of looking at it. There's aspiration and
03:19there's caps. Now, we need to ensure, as I said, Melissa, that we have the skilled migrants we need.
03:27And that's set a year in advance and it's continually reviewed. It's set at about 70% of the permanent
03:34migration total and it has been for a very long time. And that's why I say it's about right.
03:42What industry wants as part of that is not just the raw number, it's a system that's efficient and
03:48transparent and not manifestly expensive. So, there's the number and then there's also the process
03:56that's really important here. Should various parts of the system be capped, that's a matter
04:03for the debate around the overall migration numbers. That goes into all sorts of things,
04:08working holiday visas, which are crucial, particularly for regional Australia and also
04:13for parts of our economy. They're really important for the retail and particularly the hospitality sector.
04:20So, we have to be very careful there if we want to make cuts there. They will have economic impacts
04:27in the way that it means that there will be jobs that won't be filled within the economy and that'll
04:34make it harder for business. Turning to some of the tax policies announced, we've had two announced
04:41announced by both parties. You've got the government offering $250 back to Australian workers from 2028.
04:49The coalition last night promising to end bracket creep. In your view, is there a better policy here?
04:58Well, there are two different ways of achieving the same thing, at least in the short term.
05:05The issue here is that businesses, the industry has been saying for a very long time that bracket
05:10creep is a major problem because it's a disincentive for people to want to work harder. When you move
05:17into a new tax bracket, inflation does eat it up and that's very clear. We've said that for a long
05:22time.
05:22So, look, this is a policy approach that we like. It's got, you know, complexities. There's, you know,
05:28issues around, you know, how much will it cost, how big, how high is the inflation rate at the time.
05:34But the fact that people are losing money when they're moving into new tax brackets is a real
05:40problem for incentives. So, we think it's positive that this has been raised by the opposition and
05:46we're very pleased that they have raised it for public debate. The Watto, as the government has
05:52described it, the Working Australians tax offset, is another way of addressing it in the short term.
05:58The question will be is whether that then gets indexed and goes up as time goes on or it loses
06:04value as time goes on, as inflation eats into it. We want Working Australians, all Australians to be
06:12properly rewarded for the work that they do and bracket creep is a massive disincentive for people
06:19to work harder and to become more productive and to contribute more to the economy. So, this is an
06:25important debate. Let's have it. Certainly a lot to unpack here. Ines Willicks,
06:30thank you so much for your time and analysis this morning. Really appreciate it.
06:34Thanks, Melissa. You take care. Bye.
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