ANNA HENDERSON, HOST: Prime Minister, thanks for joining SBS.
ANTHONY ALBANESE, PRIME MINISTER: Good to be with you.
HENDERSON: What would the young boy from Marrickville with a single mum think about a $3 a day increase for people living in poverty?
PRIME MINISTER: The young boy from Marrickville would have said that this is a Budget that looks after people, that makes a positive difference. Would be very proud, as I am, of the changes that we've made to the single parenting payment, making sure that people are looked after till their youngest, if you're a single mum, turns fourteen rather than eight, adding some $176 a fortnight to people's payments. We also have provided the space for a $40 a fortnight increase in JobSeeker. We're also providing increased rental assistance of 15 per cent. But we're doing all of this in a way that provides for a responsible Budget, taking pressure off families, whilst we're not adding to pressure on inflation.
HENDERSON: The Government seems very sure of that point. But economists have a different point of view, they are very worried about the inflationary impact of your Budget, will you listen to them?
PRIME MINISTER: Well, you can't have it both ways, of course, of the first two questions you've asked, you can't say we're not doing enough, but then say we're doing too much. We think we've got the balance right. And when you look at the 87 per cent of revenue that we've put towards the bottom line, to reduce debt, to reduce those interest payments, when you look at the $40 billion of savings that we've found in our first two budgets, within one year of us being in office. And when you look at the fiscal turnaround, I mean, the former government projected a massive deficit in this financial year when they brought down their Budget just a year ago. What we've done is turn that around into a projected modest surplus of $4.2 billion.
HENDERSON: These structural costs are just ballooning. So in that environment, and given the Treasurer has just revealed the cost of the stage three tax cuts is going up, is it time to reconsider them in the next Budget?
PRIME MINISTER: We gave no consideration to that and our position hasn't changed. But what we've done is to make sure that the measures that we've put in place, take our energy price relief plan, we could have done what the former government did a lot of, hand out cash to people. What we've done instead is design it in a way, with the price caps on gas and coal that came into place at the end of last year, but then providing this $3 billion of support, along with state and territory governments, to reduce some people's power bills by up to $500, so that that together, Treasury has found, that will take three quarters of a per cent off inflation. So that's making a positive difference to families, to the dollars in people's pockets being able to remain there, whilst at the same time taking pressure off inflation.
HENDERSON: We've got the pressure on housing as well. So is your plan to put the housing bill to the Senate this week, setting up the possibility of a double dissolution election trigger later in the year?
PRIME MINISTER: What we want is for the Senate to vote for it.
HENDERSON: But if they don't?
PRIME MINISTER: This is a plan for a Housing Australia Future Fund for 30,000 additional social and affordable homes, including 4,000 for women and children escaping domestic violence. It's beyond my comprehension, how the Greens political party can say they're concerned about social housing, and they're going to vote against 30,000 additional housing units being provided, a $10 billion fund that will make a difference for housing for veterans, housing for women and children escaping domestic violence, increase that housing supply as well. And that's just one of the measures that we've put in place, as well as our Housing Accord.
HENDERSON: There is a lot.
PRIME MINISTER: Increase in rental assistance, our increased incentives for build to rent, a comprehensive plan to deal with housing, the Senate should vote for it. It should be non-controversial because it's good policy.
HENDERSON: Okay, but would you be prepared to go to an election on this housing policy you're so proud of?
PRIME MINISTER: I want them to vote for it. I'm not focused on elections. We haven't been in office yet, Anna, for one year, for one year.
HENDERSON: It is extraordinary we're talking about an election.
PRIME MINISTER: Well you are, I'm not.
HENDERSON: Okay, fair enough.
PRIME MINISTER: What I'm focused on is delivering the policies that we have a clear mandate for. We raised, the Housing Australia Future Fund was the centrepiece of my second Budget reply. We campaigned on it for 18 months prior to the election. Everyone knows we had a mandate for it. They should vote for it. It's more needed now than when we first proposed it.
HENDERSON: Just on those other spending measures, in terms of the hydrogen boost that you provided in the Budget.
PRIME MINISTER: $2 billion.
HENDERSON: Are you putting too many eggs in the green hydrogen basket? Because the scientific advice is this is not completely tested and reliable. Why are we going so far in that direction, is it just to try and compete with the US right now?
PRIME MINISTER: This is just one of our plans to deal with climate change. But what green hydrogen can do, potentially, is to create a green steel industry here, a green aluminium industry here, to provide an enormous economic benefit. We can be a renewable energy superpower for the world. The other thing that hydrogen can do is to provide a stabiliser if you like, for renewables. And it can make an enormous difference. And there is, of course, in the US, there is the Inflation Reduction Act. I want to make sure that you deal with climate change by the world moving, not just the United States. It's terrific that President Biden is taking such strong action, but we want action here as well.
HENDERSON: Let's switch gears, you've put a lot of money into the Voice referendum, which is, of course, very welcomed from the community. If the referendum fails, will you still fund the Makarrata Commission? And will that be in the next Budget?
PRIME MINISTER: I'm about a successful referendum. I think that the consequences of the referendum failing will be bad for the country. I want to show respect for First Nations people. We've waited 122 years since Federation, and it is time, it is time to recognise Aboriginal and Torres Strait Islander people in our nation's Constitution. I'm confident that Australians will vote yes in the last quarter of this year. Just yesterday, the National Rugby League joined all those businesses, sporting organisations, faith groups, the union movement, in coming out and supporting yes.
HENDERSON: Is Makarrata on your agenda regardless?
PRIME MINISTER: What's on my agenda is the referendum this year. I'm very focused on that. And I'm focused on a successful outcome.
HENDERSON: In the Budget, there's funding for the Doha Mission, for the Afghanistan Embassy outside of Afghanistan for the next four years. So is your government now of the view that it's not going to be possible to go back into Kabul and have an embassy for that period of time?
PRIME MINISTER: Well, we're dealing with the circumstances which are there right now. And quite clearly, the assessment that we've made is that it isn't possible to do that right now. But we'll continue to monitor those issues, as we always do.
HENDERSON: We've just had news out of the US, Donald Trump has been found to have sexually abused E Jean Carroll. He's running for President. Do you think you could work with someone with his character on AUKUS?
PRIME MINISTER: I'm not going to make comments on legal cases in Australia, let alone in the United States. So I'll leave those issues to the US. I'm working very closely with President Biden, I look forward to welcoming him here in Australia in just a couple of weeks.
HENDERSON: Let's circle back to what we do want to talk about, which is the Budget. There is an interest rate prediction in the Budget documents from economists that says we've reached the peak of the interest rate rises. Do you think that's where we are now?
PRIME MINISTER: Well, of course, interest rates are set independently by the Reserve Bank. But what I do know is that we have a fiscal policy that is working in concert now with monetary policy by making sure that we're delivering on our commitments, at the same time as of course producing a projected Budget surplus.
HENDERSON: Is it your hope that the levers that you've pulled fiscally will ensure there isn't another rise?
PRIME MINISTER: Well, what I know is that the levers that we've pulled are the economically responsible ones.
HENDERSON: Prime Minister, we thank you for your time.
PRIME MINISTER: Thanks very much.
ANNA HENDERSON, HOST: Prime Minister, thanks for joining SBS.
ANTHONY ALBANESE, PRIME MINISTER: Good to be with you.
HENDERSON: What would the young boy from Marrickville with a single mum think about a $3 a day increase for people living in poverty?
PRIME MINISTER: The young boy from Marrickville would have said that this is a Budget that looks after people, that makes a positive difference. Would be very proud, as I am, of the changes that we've made to the single parenting payment, making sure that people are looked after till their youngest, if you're a single mum, turns fourteen rather than eight, adding some $176 a fortnight to people's payments. We also have provided the space for a $40 a fortnight increase in JobSeeker. We're also providing increased rental assistance of 15 per cent. But we're doing all of this in a way that provides for a responsible Budget, taking pressure off families, whilst we're not adding to pressure on inflation.
HENDERSON: The Government seems very sure of that point. But economists have a different point of view, they are very worried about the inflationary impact of your Budget, will you listen to them?
PRIME MINISTER: Well, you can't have it both ways, of course, of the first two questions you've asked, you can't say we're not doing enough, but then say we're doing too much. We think we've got the balance right. And when you look at the 87 per cent of revenue that we've put towards the bottom line, to reduce debt, to reduce those interest payments, when you look at the $40 billion of savings that we've found in our first two budgets, within one year of us being in office. And when you look at the fiscal turnaround, I mean, the former government projected a massive deficit in this financial year when they brought down their Budget just a year ago. What we've done is turn that around into a projected modest surplus of $4.2 billion.
HENDERSON: These structural costs are just ballooning. So in that environment, and given the Treasurer has just revealed the cost of the stage three tax cuts is going up, is it time to reconsider them in the next Budget?
PRIME MINISTER: We gave no consideration to that and our position hasn't changed. But what we've done is to make sure that the measures that we've put in place, take our energy price relief plan, we could have done what the former government did a lot of, hand out cash to people. What we've done instead is design it in a way, with the price caps on gas and coal that came into place at the end of last year, but then providing this $3 billion of support, along with state and territory governments, to reduce some people's power bills by up to $500, so that that together, Treasury has found, that will take three quarters of a per cent off inflation. So that's making a positive difference to families, to the dollars in people's pockets being able to remain there, whilst at the same time taking pressure off inflation.
HENDERSON: We've got the pressure on housing as well. So is your plan to put the housing bill to the Senate this week, setting up the possibility of a double dissolution election trigger later in the year?
PRIME MINISTER: What we want is for the Senate to vote for it.
HENDERSON: But if they don't?
PRIME MINISTER: This is a plan for a Housing Australia Future Fund for 30,000 additional social and affordable homes, including 4,000 for women and children escaping domestic violence. It's beyond my comprehension, how the Greens political party can say they're concerned about social housing, and they're going to vote against 30,000 additional housing units being provided, a $10 billion fund that will make a difference for housing for veterans, housing for women and children escaping domestic violence, increase that housing supply as well. And that's just one of the measures that we've put in place, as well as our Housing Accord.
HENDERSON: There is a lot.
PRIME MINISTER: Increase in rental assistance, our increased incentives for build to rent, a comprehensive plan to deal with housing, the Senate should vote for it. It should be non-controversial because it's good policy.
HENDERSON: Okay, but would you be prepared to go to an election on this housing policy you're so proud of?
PRIME MINISTER: I want them to vote for it. I'm not focused on elections. We haven't been in office yet, Anna, for one year, for one year.
HENDERSON: It is extraordinary we're talking about an election.
PRIME MINISTER: Well you are, I'm not.
HENDERSON: Okay, fair enough.
PRIME MINISTER: What I'm focused on is delivering the policies that we have a clear mandate for. We raised, the Housing Australia Future Fund was the centrepiece of my second Budget reply. We campaigned on it for 18 months prior to the election. Everyone knows we had a mandate for it. They should vote for it. It's more needed now than when we first proposed it.
HENDERSON: Just on those other spending measures, in terms of the hydrogen boost that you provided in the Budget.
PRIME MINISTER: $2 billion.
HENDERSON: Are you putting too many eggs in the green hydrogen basket? Because the scientific advice is this is not completely tested and reliable. Why are we going so far in that direction, is it just to try and compete with the US right now?
PRIME MINISTER: This is just one of our plans to deal with climate change. But what green hydrogen can do, potentially, is to create a green steel industry here, a green aluminium industry here, to provide an enormous economic benefit. We can be a renewable energy superpower for the world. The other thing that hydrogen can do is to provide a stabiliser if you like, for renewables. And it can make an enormous difference. And there is, of course, in the US, there is the Inflation Reduction Act. I want to make sure that you deal with climate change by the world moving, not just the United States. It's terrific that President Biden is taking such strong action, but we want action here as well.
HENDERSON: Let's switch gears, you've put a lot of money into the Voice referendum, which is, of course, very welcomed from the community. If the referendum fails, will you still fund the Makarrata Commission? And will that be in the next Budget?
PRIME MINISTER: I'm about a successful referendum. I think that the consequences of the referendum failing will be bad for the country. I want to show respect for First Nations people. We've waited 122 years since Federation, and it is time, it is time to recognise Aboriginal and Torres Strait Islander people in our nation's Constitution. I'm confident that Australians will vote yes in the last quarter of this year. Just yesterday, the National Rugby League joined all those businesses, sporting organisations, faith groups, the union movement, in coming out and supporting yes.
HENDERSON: Is Makarrata on your agenda regardless?
PRIME MINISTER: What's on my agenda is the referendum this year. I'm very focused on that. And I'm focused on a successful outcome.
HENDERSON: In the Budget, there's funding for the Doha Mission, for the Afghanistan Embassy outside of Afghanistan for the next four years. So is your government now of the view that it's not going to be possible to go back into Kabul and have an embassy for that period of time?
PRIME MINISTER: Well, we're dealing with the circumstances which are there right now. And quite clearly, the assessment that we've made is that it isn't possible to do that right now. But we'll continue to monitor those issues, as we always do.
HENDERSON: We've just had news out of the US, Donald Trump has been found to have sexually abused E Jean Carroll. He's running for President. Do you think you could work with someone with his character on AUKUS?
PRIME MINISTER: I'm not going to make comments on legal cases in Australia, let alone in the United States. So I'll leave those issues to the US. I'm working very closely with President Biden, I look forward to welcoming him here in Australia in just a couple of weeks.
HENDERSON: Let's circle back to what we do want to talk about, which is the Budget. There is an interest rate prediction in the Budget documents from economists that says we've reached the peak of the interest rate rises. Do you think that's where we are now?
PRIME MINISTER: Well, of course, interest rates are set independently by the Reserve Bank. But what I do know is that we have a fiscal policy that is working in concert now with monetary policy by making sure that we're delivering on our commitments, at the same time as of course producing a projected Budget surplus.
HENDERSON: Is it your hope that the levers that you've pulled fiscally will ensure there isn't another rise?
PRIME MINISTER: Well, what I know is that the levers that we've pulled are the economically responsible ones.
HENDERSON: Prime Minister, we thank you for your time.
PRIME MINISTER: Thanks very much.