Latest / 360 with Katie Woolf / Katie Woolf spoke with Federal Finance Minister Simon Birmingham

Transcript

Katie Woolf spoke with Federal Finance Minister Simon Birmingham · 360 with Katie Woolf

• 0:00
  Speaker 1: Hello, Katie Wolf and three point sixty online at Mix
• 0:03
  Speaker 1: one O four nine dot com.
• 0:05
  Speaker 2: You.
• 0:06
  Speaker 1: Well, what a busy morning it's been so far. And
• 0:08
  Speaker 1: we know the federal budget was handed down overnight and
• 0:10
  Speaker 1: it seems theys something for everyone. It certainly looks like
• 0:14
  Speaker 1: a pre election budget. But what's in at for the
• 0:17
  Speaker 1: Northern territory. Well, joining us on the line is the
• 0:19
  Speaker 1: Federal Finance Minister, Simon Birmingham. Good morning to.
• 0:23
  Speaker 3: You, Good morning Katie, break you with you.
• 0:25
  Speaker 4: Minister, Thanks so much for your time.
• 0:28
  Speaker 1: When we look at this, firstly, the figures are eyewatering
• 0:31
  Speaker 1: net debt seven hundred and twenty nine billion, our deficit
• 0:34
  Speaker 1: for twenty twenty one one hundred and six point six billion.
• 0:38
  Speaker 1: The Treasurer unveiled tens of billion dollars in new spending.
• 0:42
  Speaker 4: Minister. It's the kind of debt.
• 0:44
  Speaker 1: That the Coalition would call reckless if labor were doing
• 0:47
  Speaker 1: the spending. Why is this level of spending required at
• 0:50
  Speaker 1: this point in time?
• 0:53
  Speaker 3: So we're dealing with very different times right now.
• 0:55
  Speaker 2: The global economic crisis induced by COVID nineteen has been
• 1:00
  Speaker 2: the biggest shock to the world economy since World War Two,
• 1:03
  Speaker 2: and obviously that's necessitated huge investment in spending in keeping
• 1:07
  Speaker 2: Australian safety and secure, and this budget is our next
• 1:11
  Speaker 2: stage in our plan to continue the economic recovery while
• 1:14
  Speaker 2: continuing to keep Australian safe and secure from COVID nineteen. Now,
• 1:18
  Speaker 2: what we've been able to do is frame a budget
• 1:21
  Speaker 2: where in fact, those net debt predictions that you spoke
• 1:24
  Speaker 2: about will actually be lower in each of the next
• 1:27
  Speaker 2: ten years compared with what was forecast in last year's budget.
• 1:30
  Speaker 2: So because of the strength of our economic recovery, because
• 1:33
  Speaker 2: we're getting more Australians back into work, we're able to
• 1:36
  Speaker 2: invest in central services like aged care, like disability support
• 1:41
  Speaker 2: or mental health, but do so in a way where
• 1:44
  Speaker 2: those debt projections are lower both in absolute terms and
• 1:47
  Speaker 2: the share of the size of our economy compared with
• 1:50
  Speaker 2: what was forecast just back in last year's budget.
• 1:53
  Speaker 1: Now, Minister, we know around one hundred thousand territories are
• 1:56
  Speaker 1: expected to benefit from tax cuts. It's going to be
• 2:00
  Speaker 1: eligible and who exactly will this help.
• 2:04
  Speaker 2: So these tax cuts are going to going to provide
• 2:08
  Speaker 2: real boost to territories, providing up to one thousand and
• 2:12
  Speaker 2: eighty dollars for low and middle income families in the
• 2:16
  Speaker 2: territory for individuals up to one hundred and sixty dollars
• 2:19
  Speaker 2: for duel income families in low and middle income categories.
• 2:23
  Speaker 3: They spied really two purposes.
• 2:25
  Speaker 2: One is, in part there bridge through to some of
• 2:28
  Speaker 2: the permanent tax reforms that we are implementing in a
• 2:31
  Speaker 2: staged way that will see most Australians pay no more
• 2:35
  Speaker 2: than thirty cents in.
• 2:36
  Speaker 3: The dollar income tax rate.
• 2:38
  Speaker 2: But they're also an important part of our COVID recovery
• 2:40
  Speaker 2: plan by providing additional support over the next year. And
• 2:44
  Speaker 2: they provide a support for individuals and families that sits
• 2:48
  Speaker 2: alongside some of the investment incentives that we've put in
• 2:51
  Speaker 2: place for Australian businesses that are all about getting business
• 2:55
  Speaker 2: to bring forward growth plans they might have had, investment
• 2:59
  Speaker 2: plans they might have had so that we get more
• 3:01
  Speaker 2: activity now and greater productivity and capacity in our businesses
• 3:05
  Speaker 2: for jobs growth over the years to come.
• 3:07
  Speaker 1: If you are you know, let's say there's territories listening
• 3:10
  Speaker 1: right now wondering if they are eligible for some of
• 3:13
  Speaker 1: these tax cuts, and businesses wondering how they might be
• 3:16
  Speaker 1: able to access some of what is available. Where are
• 3:20
  Speaker 1: they going to be able to get that information.
• 3:22
  Speaker 3: From the budget.
• 3:25
  Speaker 2: Dot Dog is a source of all sorts of information
• 3:29
  Speaker 2: for people with links off to some of the different
• 3:33
  Speaker 2: programs or departmental sites where they can find more info.
• 3:36
  Speaker 2: But I mean essentially every single Australian business is basically
• 3:41
  Speaker 2: entitled to full expensing. Only a handful of major globals
• 3:47
  Speaker 2: and others with revenue and excess at five billion dollars
• 3:51
  Speaker 2: find themselves excluded. Otherwise, what we're doing is really backing
• 3:55
  Speaker 2: Australian business here to invest, to grow, and we've got
• 4:00
  Speaker 2: ployment already back to levels that were pre pandemic. And
• 4:03
  Speaker 2: in this budget, the projection is that we will create
• 4:05
  Speaker 2: a further two hundred and fifty thousand jobs for Australia.
• 4:09
  Speaker 2: We will mostly be delivered by the private sector, but
• 4:12
  Speaker 2: we're also supporting subsidies to drive one hundred thousand additional
• 4:17
  Speaker 2: apprentice opportunities around Australia, and of course, you know, fueling
• 4:22
  Speaker 2: additional investment in infrastructure projects like the NT National Network,
• 4:28
  Speaker 2: highway upgrades and access in to the b to Looo basin.
• 4:32
  Speaker 1: I was just going to ask, can you run us
• 4:34
  Speaker 1: through what's in it for the Northern territory. We did
• 4:36
  Speaker 1: catch up with the Deputy Prime Minister a bit earlier
• 4:39
  Speaker 1: in the week and have also spoken to the Energy Minister.
• 4:42
  Speaker 4: But what is in it for the territory.
• 4:45
  Speaker 2: I'm sure until the DPM took you through those infrastructure projects,
• 4:49
  Speaker 2: an additional four hundred and one million dollars towards key
• 4:52
  Speaker 2: Northern Territory infrastructure projects. Now I'm sure Angus Taylor took
• 4:56
  Speaker 2: you through the potential we're seeing through our commitments to
• 4:59
  Speaker 2: fuel storage, to our energy security and making sure that
• 5:03
  Speaker 2: Australia has sovereign capability.
• 5:05
  Speaker 3: And they're building on the.
• 5:07
  Speaker 2: Big manufacturing strategy that we released in last year's budget
• 5:10
  Speaker 2: and we're extending that in this year's budget with new
• 5:14
  Speaker 2: sovereign capability policies and settings across government. The territory is
• 5:19
  Speaker 2: also going to be in direct support flowing through GST
• 5:24
  Speaker 2: payments that we collect on behalf of the States and
• 5:26
  Speaker 2: territories are estimated to be three point three billion dollars
• 5:30
  Speaker 2: in twenty twenty one to twenty two. That's an increase
• 5:32
  Speaker 2: of five hundred million dollars over what was expected at
• 5:35
  Speaker 2: the time of last year's budget, so that will provide
• 5:39
  Speaker 2: greater capability to Michael Gunner and his team in the
• 5:43
  Speaker 2: Northern Territory to be able to deliver in the territory.
• 5:46
  Speaker 2: And in fact, overall we're seeing other Commonwealth payments to
• 5:51
  Speaker 2: the territory increasing as well by a further two hundred
• 5:55
  Speaker 2: million dollars or eleven percent increase compared with twenty twenty
• 5:59
  Speaker 2: one budget symits that are really supporting the territory and
• 6:02
  Speaker 2: the Territory government to be able to deliver as well.
• 6:06
  Speaker 1: Can you just very clearly again lay that out for
• 6:09
  Speaker 1: us the GST, because I know over the last few
• 6:11
  Speaker 1: years here in the Territory there's been quite a bit
• 6:13
  Speaker 1: of discussion about the GST. In previous years the Northern
• 6:17
  Speaker 1: Territory government have said that it's had a massive impact
• 6:21
  Speaker 1: on our budget when the GST share has gone down.
• 6:24
  Speaker 1: But it does, like you've said, seem as though we've
• 6:26
  Speaker 1: had quite the windfall when it comes to the GST
• 6:29
  Speaker 1: this time round.
• 6:32
  Speaker 3: So I mean GSD does move.
• 6:34
  Speaker 2: Government revenues move around depending on consumer behavior and business trends,
• 6:39
  Speaker 2: and we face that as a federal government in terms
• 6:41
  Speaker 2: of how much income tax and company tax and so
• 6:44
  Speaker 2: on is paid, and the state's face it in relation
• 6:47
  Speaker 2: to the GST that we collect for them and pass
• 6:49
  Speaker 2: through to them.
• 6:50
  Speaker 3: But because again we've got.
• 6:52
  Speaker 2: A stronger economy, there's more Australian during jobs than ever before.
• 6:56
  Speaker 2: And let's contrast that against the rest of the world.
• 6:58
  Speaker 2: In Europe, they're facing a recession. So you know, the
• 7:02
  Speaker 2: COVID problems in the rest of the world aren't just
• 7:04
  Speaker 2: the human tragedy.
• 7:05
  Speaker 3: We're seeing in India.
• 7:07
  Speaker 2: They're also continued economic crises in other parts of the world.
• 7:10
  Speaker 2: But here we've got that strong economy and we've kept
• 7:13
  Speaker 2: people safe. We've got jobs coming back we're forecasting and
• 7:17
  Speaker 2: other chanlendred and fifty thousand jobs being created and all
• 7:20
  Speaker 2: of that is providing great consumer confidence, which is leading
• 7:24
  Speaker 2: to spending patterns that are driving that lift in GST
• 7:27
  Speaker 2: for the states and territories. And so that's a five
• 7:31
  Speaker 2: hundred million dollar additional bonus to the Northern Territory government
• 7:36
  Speaker 2: in terms of the GST revenues they will received.
• 7:38
  Speaker 1: Now, while that is good news, we know that Labour's
• 7:41
  Speaker 1: Member for Solomon Though, Luke Gosling, he's slammed the budget
• 7:45
  Speaker 1: saying there is nothing for the territory. He's also questioned
• 7:48
  Speaker 1: where two hundred and sixteen million dollars in funding for
• 7:51
  Speaker 1: Kakadoo has gone and slammed no funding for the Veteran
• 7:55
  Speaker 1: Well Being Center. What's your response to that.
• 8:01
  Speaker 3: Well, this is a.
• 8:01
  Speaker 2: Budget for all Australians and first and foremost is the
• 8:04
  Speaker 2: national government. It is about keeping Australian safe from COVID,
• 8:08
  Speaker 2: keeping the economy growing, and so the investments, the tax investments.
• 8:12
  Speaker 2: We've spoken of other things such as what we're creating
• 8:16
  Speaker 2: around what's called a patent box, which is about in
• 8:19
  Speaker 2: a new tax tool to help to keep innovations in
• 8:23
  Speaker 2: Australia and have them commercialized and manufactured and developed in Australia.
• 8:27
  Speaker 2: They're important about getting growth in those manufacturing sectors. But
• 8:32
  Speaker 2: this is also a budget firmly it is delivering for
• 8:35
  Speaker 2: the territory throughout COVID, and we've provided additional infrastructure funding
• 8:40
  Speaker 2: for projects to be delivered across Kakadu and Ularu to
• 8:45
  Speaker 2: be able to step up the work and investment in
• 8:48
  Speaker 2: those communities, particularly while visitors weren't allowed in, but to
• 8:51
  Speaker 2: be able to improve infrastructure facilities, and of course there
• 8:55
  Speaker 2: are big projects underway in relation to the restoration of
• 8:59
  Speaker 2: Jabbora and the potential there which we are investing in.
• 9:04
  Speaker 2: But that's all subject to working successfully with the local community,
• 9:07
  Speaker 2: territory government, federal government and of course traditional owners in
• 9:12
  Speaker 2: terms of delivery of those projects.
• 9:13
  Speaker 4: And that's what we're getting on with Minister.
• 9:15
  Speaker 1: We are running out of time, but tourism is indeed
• 9:18
  Speaker 1: a sector which has been hard hit when it comes
• 9:21
  Speaker 1: to COVID. The estimates from last night are based on
• 9:24
  Speaker 1: the assumption that those borders are not going to open
• 9:27
  Speaker 1: until the middle of next year.
• 9:29
  Speaker 4: How's the budget going.
• 9:30
  Speaker 1: To really assist those territory tourism operators that are impacted
• 9:35
  Speaker 1: by the lack of international travel.
• 9:38
  Speaker 2: So we've stepped up one point two billion dollars in
• 9:42
  Speaker 2: terms of support for the tourism industry through a program
• 9:46
  Speaker 2: that is driving domestic flight subsidies across the country. More
• 9:52
  Speaker 2: than six hundred and fifty thousand such flights have been
• 9:55
  Speaker 2: booked already around Australia. They're going to provide a continuing
• 9:59
  Speaker 2: boost in terms of visitation for some time to come.
• 10:03
  Speaker 2: I think we're seeing Australian too traditionally spend sixty five
• 10:06
  Speaker 2: billion dollars leaving the country actually now booking and traveling
• 10:11
  Speaker 2: across Australia and we want to make sure we keep
• 10:14
  Speaker 2: that going, which is why we've put those sorts of
• 10:17
  Speaker 2: supports for the aviation industry and for tourism and travel
• 10:20
  Speaker 2: bookings to occur into effect. And from what I'm hearing
• 10:25
  Speaker 2: from tourism operators around the country, some of them are
• 10:28
  Speaker 2: now seeing even better bookings than they would customarily have
• 10:33
  Speaker 2: seen through these times of years before.
• 10:35
  Speaker 1: Well, Minister, is this the coalitions last last we'll budget
• 10:39
  Speaker 1: before a federal election?
• 10:41
  Speaker 2: Well, the election is you in the first half of
• 10:44
  Speaker 2: next year. The budget customarily hands down in May, so
• 10:48
  Speaker 2: we'll be up to the PM as to when he
• 10:50
  Speaker 2: calls that election in the first half of next year.
• 10:52
  Speaker 3: But that's firmly when I expected to be.
• 10:54
  Speaker 4: Well. Always good to catch up with you.
• 10:56
  Speaker 1: In fact, I think this might be the first time
• 10:58
  Speaker 1: we've had you on the show Federal Finance to Simon Birmingham,
• 11:01
  Speaker 1: So we really appreciate your time this morning.
• 11:03
  Speaker 4: Thanks for having a chat with us.
• 11:05
  Speaker 3: Happy to do so anytime, Katie, Thanks so much.
• 11:07
  Speaker 4: Thank you,