Interview with Natalie Barr, Sunrise
19 February 2025
NATALIE BARR: Speculation is growing this morning about the chances of an early election after the Reserve Bank announced the first cash rate cut Since 2020 the move to cut interest rates by a quarter percent was quickly followed by all four big banks, as well as a round of interviews by the Prime Minister and the treasurer, promoting the good news for their take. Let's bring in Employment Minister Murray Watt and Shadow Finance Minister Jane Hume. Good morning. Murray, the PM brushed off comments about an early election. But are things going to get any better for you right now after this rate cut, especially given the RBA Governor, really, seemed to pour cold water on any more rate cuts anytime soon?
MURRAY WATT: Good morning, Nat, of course, it's up to the Prime Minister when we go to the polls, and every single day, we'll retain our focus on helping Australians with cost of living pressures. Obviously, yesterday was very welcome news. I think for all Australians with a mortgage, someone with a $600,000 mortgage will now save about $100 a month. And you know that won't fix every challenge with household budgets, but it certainly will help. And that's, of course, on top of the other cost of living pressure support that we continue to provide Australian households and keep wages moving. So that's going to be our focus. Of course, there will be an election between now and May. In the meantime, we'll get on with preparing a budget, and as I say, keeping that focus on taking pressure off people.
NATALIE BARR: Jane, let's talk about the cuts. The headlines were screaming that all the banks immediately passed it on. They kind of did, and they kind of didn't, though, didn't they, because the big four banks won't calculate the cut until the end of February, in some cases, early March. Should they calculate it sooner?
JANE HUME: The Coalition has said consistently that we want to see the banks pass on any interest rate cut in full because Australians are crying out for assistance. Murray is right that families will be around $100 or so a month better off with the average mortgage. But unfortunately, those same families have already paid an additional around $50,000 in interest that they will never get back over the last three years because of those 12 interest rate hikes that we've seen under Labor. And the fact is, their standard of living has gone backwards by about 8.7 per cent in the last three years so families, they're poorer under labor, and they're feeling it every single day in their hip pocket, whether they're at the grocery store, whether they're paying off their mortgage, whether they're paying their electricity bill, and that's what we're going to see play out at this election.
NATALIE BARR: Yeah, Murray, it's interesting, isn't it, because a small lender like Athena, they calculated that cut from yesterday. The big four banks, NAB Commonwealth, ANZ, have calculated from February 28. I think Westpac from March 4. What do you say to those big four banks? Because they will make millions in the meantime.
MURRAY WATT: Look, I think the big four banks should be passing on this rate cut ASAP. Not a day's delay in making that happen. Because I think Australians really deserve this rate cut. We all know that Australians have worked really…
NATALIE BARR: So do you think they are ripping people off in this two weeks Murray?
MURRAY WATT: Well, I would prefer to see the banks get moving sooner than they are planning to...
NATALIE BARR: That’s a bit soft isn’t it.
MURRAY WATT: …and hopefully that will occur. Well, I mean, this is the sort of call that we're making of the banks, but I have to take issue with one thing Jane has said there. I mean, we all know that interest rate rises have hurt many Australians over the last couple of years, but every step that our government has taken to lift wages or to provide cost of living relief has been opposed by Peter Dutton and the Coalition. Jane talks about electricity prices. They voted against the $300 rebate for electricity bills that we provided…
NATALIE BARR (interrupts): Let's get off politics.
MURRAY WATT: …they voted against cheaper childcare, cheaper medicine…
NATALIE BARR: and lets think about the people who are paying out, out of their pockets onto their mortgage. Jane, what do you think about the big four banks taking two weeks to calculate somehow people's interest rates?
JANE HUME: Nat, I think that you're making a really good point here. We also want to see what the big banks do with deposit rates as well, because we know that there are a lot of people out there that are now going to earn less on their savings. That's one of the other, you know.
NATALIE BARR: So what would you say…
JANE HUME: That's one of the other..
NATALIE BARR: to the big four banks?
JANE HUME: Well, we've already said, pass it on in full, pass it on.
NATALIE BARR: Why do you reckon they can't do that?
JANE HUME: Well, you're going to have to ask the big the big banks that one that some of them have already cut their interest rates in anticipation of this cut, which is a good thing, which is a good thing, but the fact is that Australians have gone backwards over the last three years. And any relief is necessary relief, any relief is important because our home grown inflation crisis, which has been made worse by Labor's misplaced priorities and poor decisions, is costing Australians more. Any relief is good relief.
NATALIE BARR: So let's get to something else that's affecting people Sydney trains affecting thousands and thousands of people. Commuters remain uncertain about whether they're going to face more train delays and chaos as the union remains in a standoff with the Chris Minns government over various demands. Murray, your federal portfolio gives you extraordinary power to actually terminate all industrial action that would cause significant damage to the Australian economy. That's the quote. Has the New South Wales premier given you a call? Do you expect one would you act?
MURRAY WATT: Well, you're right, that power does exist, and it is an extraordinary one. It's one that's never been used by any minister on either side of politics. The whole time it's been in our Acts of Parliament, what I've been focused on is trying to convince both sides to resolve this. I mean, I absolutely understand the frustration of Sydney commuters. I am frustrated by this, and I don't even live in Sydney, let alone the commuters have been having to put up with this for months now. So over the last few days and weeks, I have spent many hours talking with members of the government and unions, trying to bend ears and bend arms to try to get a resolution here, of course, the matter is now before the Fair Work Commission today, and I think that it's a very good thing that they have an opportunity to help resolve this. We need this to end as quickly as possible so people can get on with their lives.
NATALIE BARR: Okay, before we go the PM and his fiancee have revealed they are planning a small, intimate, outdoor wedding in the spring of this year. Murray has planning for the bachelor party begun?
MURRAY WATT: Well, you'd probably have to ask Toto something like that. I reckon she might have a hand in organising the bachelor party. (audio cut out) Jody have found love and are keen to marry each other. I'm not sure about the invitation list. I think the south rabbit holes will have to be invited before any of us, given that Jody is as big a fan as Albo, but it'll be a great day, and I think all of us are really happy for them.
NATALIE BARR: Jane, do you think you'll be on the list?
JANE HUME: Oh, absolutely. I'm sure. I've actually already chosen a frock. Obviously, it's a cost of living crisis, so I'm just recycling one that I had…
MURRAY WATT: But are you a Souths fan Jane?
JANE HUME: in the wardrobe already, and look, I think Cococabana is lovely in the springtime. So I'm looking forward to this wedding.
NATALIE BARR: Is that the inside word? Is that where it's going to be? Have you got the inside word?
JANE HUME: Well you know, I've got a little save the date, but that's for the election.
NATALIE BARR: Okay. Thank you. We’ll leave it there.