Thu 1 May
This blog is now closed.
Jane Hume: “We know that the two surpluses they delivered were essentially delivered by nothing more than windfall gains from commodity prices and bracket creep. That is not sustainable, that’s not real surpluses, that’s just windfall surpluses”
Cripes Peter Costello and John Howard must be feeling quite silly because that is exactly why they delivered budget surpluses during the mining boom – tax revenue soared – higher than it has ever been!
Back to Grogs:
Inflation might be driven by expectation – but not the expectations of a lack of a tax cut in 2 years.
The suggestion that inflationary expectations will be lower because people won’t get a tax cut in 2 years is absurd.
Angus Taylor is running this press conference as an audition for the Liberal leadership.
Q: A US campaign strategy expert has been in Australia added the election and says he looks forward to working with Peter Dutton as Prime Minister. What sort of advice did you get from him? Is there a formulation on the economy, speaking to those doing a tough guy with the cost of living, from the US experience, they could guide leadership in Australia because like I have been part of those discussions.
Taylor: Your question was with respect to whom? Donald Trump?
Q: Donald Trump’s campaign manager was here in Australia at the start of the campaign and spoke about meeting with campaign officials and giving structural advice on some of the challenges facing the Coalition campaign.
Taylor: The cabinet? In the US? The Coalition cabinet here?
Q: Peter Dutton’s cabinet.
Taylor:
Can I make a comment about the US? I suppose that is what you are referring to there. You know, we want to have a good relationship with the US. We disagree fundamentally with the position of this administration on the tariffs. We want to have open access to markets and we will work with allies around the world to make sure that we have the most open markets we can get. We want our farmers and manufacturers and miners to get access to markets. That is crucial to growth. I have laid out way investment is so important to this country.
Hume:
Campaign teams talk to each other all the time. From right around the world. This wouldn’t be unusual.
Q: You mentioned that Labor’s spending is inflationary. Don’t the facts show that they haven’t been inflationary?
Taylor:
The IMF are telling us they expect inflation to surge 3.5 %. Labor’s own numbers have inflation rising. That is the truth. The thing we know about inflation is you have to keep at it. It can come back and it can come back very fast.
We saw that in the last surge in the ’70s and ’80s. That is why we need to be focused on making sure we have a stronger budget position and Labor’s which we do. Most importantly, we are growing the economy, encouraging investment, getting growth and investment by backing small business.
That is what we’re doing in economic plan. The Instant Asset Write-Off, the entrepreneur accelerator, all these things to give people the confidence to invest in this country.
We know that growth in productivity and we know that strengthening budget position that we have laid out here. It will not only reduce the risk of inflation, but improve prosperity and budgets of households which have been under so much pressure.
Q: You have given up on the at it. surplus over the next four years. When and – you have $140 million – billion dollars in deficits over the next four years. When would you get to a surplus?
Taylor:
We will get there faster than Labor. And a critical reason we know that is there is a $14 billion improvement here. The biggest improvement you have seen since the cost of conventions went into place outside of Bill Shorten wanting to lack Australians with almost $400 billion of taxes.
So that is the focus. We know that if we get faster growth and stronger productivity, which is our goal, and we have been our biggest about that, and at the heart of that I outlaid at the press Club the importance of getting investment living to get that happening.
That improvement will improve the budget position faster and ultimately the – we know if we adopt the physical rules that Jane [Hume] talked about there, growing faster than spending, getting growth moving, we will get back to balance and we will get there as fast as we can.
Q: This shows bigger budget deficits than Labor for the first two years, and doesn’t this go against the recommendations of the RBA?
Angus Taylor:
There is a $14 billion improvement across the forwards. We are fixing to messes created by Labor. There are many but I will focus on two. The household budget and the government budget. And frankly Labor’s homegrown inflation and economic failures have been truly damaging to both. On the household budget, in the short term, we need to make sure that we make Australian lifestyle is more affordable, which means a cut on the 25 cents off the fuel offset. This makes it easier for first home buyers to get into the market.
These are measures that have to be taken over the short term. You will not see a permanent cost-of-living crisis under a Dutton government. We have had one under a Labor government. And they seem to be planning for one.
You won’t under us. 60 household budgets fast, get them moving back on track. And then focus on making sure we have strengthening government budgets. That’s what you send these numbers. An improvement of $40 billion reduction in gross debt. We are doing that at the same time as we are investing heavily in protecting our great nation.
Which Labor seems to have forgotten about, almost $13 billion they are. Getting this balance across these imperatives is the right thing to do and we are strengthening the budget while we’re at it.
| A stronger economy with lower inflation | 2025-26 ($m) | 2026-27 ($m) | 2027-28 ($m) | 2028-29 ($m) | Total |
| Increase Defence Spending – including investing in a Fourth F-35A Lightning Squadron | -$200.0 | -$2,950.0 | -$3,850.0 | -$5,700.0 | -$12,700.0 |
| Cost of Living Tax Offset | -$400.0 | -$9,100.0 | -$500.0 | $0.0 | -$10,000.0 |
| Adjust Fuel Excise – 25c per litre reduction | -$7,413.2 | $1,479.2 | $0.0 | $0.0 | -$5,934.0 |
| Tax on unrealised capital gains – do not proceed | -$304.0 | -$609.2 | -$2,136.6 | -$2,437.5 | -$5,487.3 |
| Permanent migration program – reduction | -$410.0 | -$880.0 | -$1,300.0 | -$1,620.0 | -$4,210.0 |
| Housing Infrastructure Program | -$343.8 | -$687.5 | -$687.5 | -$687.5 | -$2,406.3 |
| Instant asset write-off – increase cap to $30,000 and make permanent | $0.0 | -$110.0 | -$820.0 | -$907.0 | -$1,837.0 |
| Rewiring the Nation Fund – unwind and redirect (c) | -$213.0 | -$278.0 | -$403.0 | -$439.0 | -$1,333.0 |
| Better transport and telecommunications infrastructure | -$72.1 | -$360.5 | -$518.1 | -$333.9 | -$1,284.6 |
| First Home Buyer Mortgage Tax Deductibility Scheme | -$7.0 | -$132.0 | -$402.0 | -$710.0 | -$1,251.0 |
| Supporting local community infrastructure projects | -$308.8 | -$329.9 | -$294.0 | -$241.7 | -$1,174.4 |
| Local Roads and Community Infrastructure program | -$400.0 | -$400.0 | -$200.0 | $0.0 | -$1,000.0 |
| Permanently restoring 20 psychology sessions and investing in headspace centres, youth psychosis centres and additional Urgent Care Clinics | -$117.6 | -$238.7 | -$242.7 | -$231.7 | -$830.7 |
| Agricultural and Mining Roads program | -$150.0 | -$150.0 | -$150.0 | -$150.0 | -$600.0 |
Angus Taylor and Jane Hume are taking advantage of what might be the final time they get to stand at a podium and talk about the economy.
This press conference is going for a really long time and we are yet to get to questions.
Grogs has entered the chat:
Over the 4 years the ALP’s tax cut that the LNP are cutting will “save” $15.9bn
But the 1 year petrol excise cut and also the 1 year tax offset will cost $18.89bn
Here is the official announcement (which was leaked out last night to Nine Publishing and News Corp. AWKS)
Today the Coalition has released its plan to repair household budgets, and repair the Commonwealth Budget.
In addition to our immediate cost of living relief to households through our fuel tax cut and then our Cost of Living Tax Offset, the Coalition Government will deliver an almost $14 billion improvement to the budget bottom line over the four years to 2028-29 compared to the Pre-election Economic and Fiscal Outlook (PEFO).
As a result of the Coalition’s responsible budget management we will be able to reduce debt by over $40 billion by 2028-29 compared to PEFO.
At the same time, taxes on families and small businesses will be lower under the Coalition’s plan.
While starting the task of budget repair we will continue to support households with a 25 cent a litre cut in the fuel excise, a $1,200 Cost of Living Tax Offset for low and middle income earners and a tax cut for first home buyers.
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