Interview with Peter Stefanovic, First Edition

17 February 2025

PETER STEFANOVIC: Latest Newspoll out this morning shows voters have had enough, and Anthony Albanese could be turfed out after just one term in power. Joining us live now is the Shadow Finance Minister, Jane Hume. Jane, the Coalition though, good morning by the way…

JANE HUME: Good morning.

PETER STEFANOVIC: The Coalition isn't exactly cruising to victory either, because there's still that primary vote that's under 40 at this stage. So I mean that means a minority government is the most likely scenario. If so, does that mean chaos for the next three years, and therefore the people are poorer for it.

JANE HUME: Pete, there is no doubt that a minority government would be the worst possible outcome, and it will be no surprise to you when I say, as I do most weeks, that the only poll that matters to the coalition is the one on election day. But what I can say is that these cumulatively, these number of polls, are pointing to the fact that people have had enough of being poorer under Labor. They've seen their standard of living go backwards by 8.7% in the last three years, while inflation has cumulatively gone up by 11% their living standards have gone up even further, sorry, their cost of living has gone up even further, 19.4% so people are really feeling that pain, and the only solution that the government has had is to spend more. That has made the problem worse. This is a government that is clearly out of ideas. They're out of excuses, and soon they'll be out of time.

PETER STEFANOVIC: Right, I mean, contrary to that, though unemployment still down, inflation is tracking down, wages is above inflation. I mean, so you can cherry pick different parts, can't you?

JANE HUME: Well, you might say that, but in fact, unemployment is higher than it was when Labor came to office. Inflation has come down, certainly, but the average inflation rate under a Coalition government was 2.2% it's been more than 4.4% under a Labor Government. Economic growth has stagnated. We're now growing at about 0.8% per annum, and we're in a per capita recession, the longest per capita recession on record. So I don't think that there's a particularly rosy outlook out there, and Australians certainly out there celebrating in the streets because they're doing so well. The last three years have been really tough for a lot of Australians, and they've told the Albanese Government that they've had enough.

PETER STEFANOVIC: If the RBA delivers a rate cut tomorrow, is that a political gift for Labor?

JANE HUME: Well, it will be, it will be absolutely a blessing for those Australians that have been paying off their mortgages around $50,000 more on the average Australians mortgage in the last three years. That's $50,000 that Australian families are never going to get back. And the reason why their mortgage has cost them more is because interest rates have stayed too high for too long. The reason why they've stayed too high for too long is because the Government has been working against the RBA, rather than with the RBA. When governments keep spending it's like having their foot on the accelerator. The RBA has been trying to put its foot on the brake. We were the only developed country in the world last year that didn't have a cut to its interest rates. And that's because the government has been working against, fiscal policy has been working against monetary policy, rather than with it. If there is a rate cut this week, and I won't preempt the RBA decision, I have no intention of muscling in on the independent RBA, the way that the Labor Government has. But should there be a rate cut tomorrow, it will be a relief for families, but will it be too little for those who have fallen so far behind.

PETER STEFANOVIC: This is such a politically charged RBA meeting this one, for obvious reasons. I can't recall quite a countdown like this one for some time, given that there's an election around the corner. I mean, the politics are, though, it helps Albanese, does it not if he gets a cut Weeks, months before an election.

JANE HUME: Which is probably why we've seen the Labor government muscle up and get a little heavy with the RBA, trying to verbal them a little bit over the last…

PETER STEFANOVIC: Well, Jim Chalmers is saying this morning for everybody to stay quiet to not to.

JANE HUME: Yes, that's exactly right, because he's realised that it hasn't worked well for him in the past. In fact, now we're going to see a change of the RBA board in the April meeting. I'm not entirely sure what the implications of that might be, but so frustrated as Jim Chalmers been with the RBA that he's messed around with the board.

PETER STEFANOVIC: Okay, by the same token, just keeping that argument going, if the RBA holds, is that a gift for you?

JANE HUME: We're not looking for the RBA to do one thing or the other. What we're looking is for government to do its fair share of the heavy lifting. And that's exactly what a coalition government will do…

PETER STEFANOVIC: Well, okay,

JANE HUME: making sure that we bring our fiscal rules under control, we will lower inflation and do our fair share of the heavy lifting to keep the inflation challenge in check.

PETER STEFANOVIC: On that note, then Peter Dutton, with a doozy of a shingle in Andrew Clenell’s interview yesterday, suggesting tax cuts across the board. Which ones are you considering and would that keep inflation under control?

JANE HUME: Pete, there's no doubt that a Coalition government will always be on the side of lower and simpler and fairer taxes. That's something that we've been saying for a considerable period of time, and we've already announced two considerable tax cuts, particularly that will affect small businesses, an increase to the rate of the instant asset write off and making that a permanent feature of the tax system, and, of course, a meal deduction for small businesses as well…

PETER STEFANOVIC: that's not across the board, though,

JANE HUME: …back into the office, that will bring people back into the office and will also help the hospitality sector. Now, if you're looking for a reinstatement of the stage three tax cuts, well, I'm afraid that, unfortunately, the Albanese Government has discarded all promises of reform, even though they took the stage three tax cuts to two elections, they broke that promise. That was going to address that pernicious bracket creep, which has been so much a feature of this Government. The reason why we're paying more tax now is because of bracket creep that has been allowed to propagate under the Albanese Government.

PETER STEFANOVIC: Mr Dutton was saying, suggesting tax cuts across the board, which wouldn't just be a reinstatement of stage three, that there'd be more tax relief for those at the lower end as well.

JANE HUME: Pete, we know that when people pay less tax, that they are more inspired to take on that extra day of work take on those extra hours…

PETER STEFANOVIC: No doubt, so what are you considering?

JANE HUME: When taxes are higher, when taxes are higher, well, that sucks the aspiration out of society. We want to inject that back into society, because that is the only way. If we inject that sense of aspiration back into our economy, we can grow the economy…

PETER STEFANOVIC: Sure, sure, sure. So what? So what cuts are you considering for everybody?

JANE HUME: I’m not going to announce our tax policy on your show. Pete, I'm sorry to say I'd love to do that…

PETER STEFANOVIC: Why not put it out there. I mean, people probably vote for it. If you put it out there, why not do it?

JANE HUME: And what a great scoop it, what a great scoop it'd be for you too.

PETER STEFANOVIC: Rather than hanging out these shingles. I mean, are they real? Are you being real or not?

JANE HUME: I think, I think you can safely say that there will always be lower and simpler and fairer taxes under a Coalition government because that's part of our DNA. It's what we believe in, is the best way to make sure that we inject aspiration back into our economy and grow the pie for everyone.

PETER STEFANOVIC: Alright I tried. Jane Hume, good to see as always, we'll talk to you soon.