PETER STEFANOVIC, HOST: Every household will see its power bills slashed by $300 as part of a nearly $8 billion cost of living package. It's a move Treasury says will cut inflation by half a percentage point next financial year. Let's go to Canberra now. Joining us live is the Prime Minister, Anthony Albanese. PM, good to see you. Thanks for your time this morning. So, how much of your reelection hopes are now dependent on inflation being tackled by Christmas?
ANTHONY ALBANESE, PRIME MINISTER: Well, what we're focused on is getting the economic settings right, and we've done that with this Budget. A tax cut for every taxpayer, energy bill relief for every household, strengthening Medicare in every community and more homes right around the country. Whilst doing all of that, providing that cost of living relief, whilst putting downward pressure on inflation and producing a second Budget surplus in a row, something that our opponents never did. We've turned a $78 billion deficit that we inherited into a $22 billion surplus last year and this year shooting for a $9.3 billion surplus, which is what is the forecast in last night's Budget.
STEFANOVIC: Because there is this Christmas time stamp, though, Prime Minister, if inflation is above the target band by then, is your economic credibility on the line?
PRIME MINISTER: What we've done is turn around the inflation question. It is now half what we inherited. The inflation figures peaked in the March 2022 quarter before we were elected, at 2.1 per cent in that quarter. Annual inflation is currently at 3.6. We have done an enormous focus on putting that downward pressure on inflation. At the same time, we're seeing wages increase, we're seeing productivity increase, we're seeing business investment increase in every single quarter. What we want to do is to get all of those economic settings right. It's been difficult to turn around the mess that we inherited. We inherited, you remember, Peter, $78 billion deficit, $1 trillion of debt, no plan for jobs, real wages decreasing. We have turned that around. We've created 780,000 jobs have been created since we came to office. That's a record for any new government.
STEFANOVIC: Mixed reaction this morning to this energy rebate so far. Prime Minister, would you make an amendment to means test it?
PRIME MINISTER: We've got the settings right. We want to make sure that, people we know are under pressure right up and down the income scale, so, we know that. That's why, for example, in our tax cuts, we're having tax cuts right throughout the income scales. 19 cents down to 16 cents at the first rate but increasing as well that top rate from 180,000 to 190,000. We are providing in this Budget, tax cuts for every single Australian taxpayer, but also energy bill relief for every household. It's the most efficient way for it to be delivered and that is a part of our cost of living package, which will make a difference. We have other measures which are targeted like rent relief. A 10 per cent increase on top of the 15 per cent that we had last year. The first time ever that we've had two consecutive support packages for renters in a row. Because we think that's necessary. That's one of our targeted measures which is there.
STEFANOVIC. So, you don't want to amend it? You don't want to means test it?
PRIME MINISTER: No. We stand by energy bill relief and we think that every single one of your listeners deserves that energy bill relief, just like every single one of your listeners watching this program deserve a tax cut. That's why we've put this in place.
STEFANOVIC: Prime Minister, will there be an early election?
PRIME MINISTER: We're focused on the economy and getting all of the settings right. I'll leave the obsession with politics to the other side. That's what they do last night. Initially, their gut instinct was to say no to Australian jobs and say no to making things here in Australia. They're addicted to saying no to everything. What we're focused on is the needs of the Australian economy and the Australian people.
STEFANOVIC. So, will there be an election this year, yes or no?
PRIME MINISTER: We're not focused on politics, Peter. What we're focused on the election that’s due in 2025. What we're focused on is getting the settings right and turning things around, making a difference to people. That’s what our focus was in this Budget, a difficult task to provide cost of living relief whilst continuing to put that downward pressure so we see inflation continuing to moderate. It was a difficult task. I think we've landed it.
STEFANOVIC: All right. Just a few other stories about this morning. Prime Minister, I want to get you on while you're here. Has there been any follow up with officials in China after that flare up nearly two weeks ago?
PRIME MINISTER: Look, we've made our position very clear to China, both publicly and privately, and you've seen that pretty obviously, I think Peter.
STEFANOVIC: Ok. But there hasn't been, since those statements last week, there hasn't been anything more? There hasn't been a response from the highest levels of the Chinese leadership?
PRIME MINISTER: Well, there has been, Peter, and you've broadcast them on your program. China has had a range of responses.
STEFANOVIC: But since then no more? That’s it? Because they accused us of spying. That's what I remember.
PRIME MINISTER: Well, you've been reporting them. Exactly, Peter. They've had a range of reasons. All of them have been wrong. We stand by what we've said, which is that it was unprofessional, it was not appropriate action. We've called it out. We've said that it's unacceptable and that Australian ships were in, the Australian ship was in international waters, we’re in international air space, we're engaged in international action against, in this case, supporting the UN sanctions against North Korea. And this is unacceptable and it shouldn't have occurred.
STEFANOVIC: Anthony Albanese, the Prime Minister. Thank you for your time this morning. We'll talk to you again soon.