CANBERRA, ACT, June 19 -- The Treasurer of Australia issued the following transcript:
Note
Subjects: Budget, small business CGT concession turnover thresholds, fuel excise
James Glenday:
After a bigger than expected budget backlash, the federal government has changed course unveiling carve‑outs for small businesses and start‑ups that will see them pay less tax. The Treasurer, Jim Chalmers, has been on a media blitz already to try to sell the changes, and he joins us bright and early from the New South Wales Central Coast. Jim, welcome back to our program.
Jim Chalmers:
Thanks very much, James.
Glenday:
Now, you're claiming that this post‑Budget consultation period was always planned and carve‑outs were always likely. Doesn't this backdown show that you really should have consulted ahead of the Budget, not in the weeks afterwards?
Chalmers:
The next steps that we announced yesterday are all about providing more certainty for investors, more support for small businesses and more incentives for innovation. We flagged in the Budget that we would be doing this consultation, whether it's on start‑ups or in other areas. We've said for some weeks that we're engaged with the small business community to make sure that we get that turnover threshold right.
What we announced yesterday means that 100percent of the 2.7million active small businesses in this country will have access to carve‑outs and concessions and something like 98percent of active businesses overall. And that's because we've consulted in a meaningful genuine way but also in the way that we flagged at Budget time.
It's not unusual at all for governments making significant tax changes to consult, to bed down the implementation details, and then to legislate that in multiple pieces of legislation, and that's what we're doing.
Glenday:
But you've been in government for 4years, you had an economic roundtable that we covered extensively, you had a lot of time to make the case publicly. Why not do this before the Budget as opposed to looking like you're doing it afterwards? I mean business is already describing this as a patch‑up job.
Chalmers:
First of all, you're right that a lot of these issues did come up at the Reform Roundtable. They've been a feature in the public debate for some time now. We did do some consultation in the lead‑up to the Budget, but I think people would understand it's not possible to conclude all of that consultation, all of those final implementation details until the proposal is on the table.
I think one of the reasons that the Tech Council, for example, welcomed the next steps that we outlined yesterday, welcomed the consultation that we put out yesterday on start‑ups, is because that consultation has been real, it has been genuine, we'll continue to consult as we bed down the details of this legislation.
Now, that has happened every time this country has embarked on significant tax reform, it's no different this time. That consultation is underway and as we finalise some of these details, including the small business turnover threshold, we announce them in the usual way and we seek to legislate them in the Senate.
Glenday:
Did the backlash help change your mind here though? I know it was bigger than a lot of members in your party had initially predicted. For example, did Pauline Hanson's full‑throated support of small business convince you to change tack at all? Was it the memes featuring the Prime Minister with pictures of small businesses alongside him? Were these the sorts of things that convinced you that you'd got the balance wrong here?
Chalmers:
No, we expected there to be a very partisan campaign against these changes, and obviously there are people in our community who would prefer things stay exactly as they are. That's the irony of the One Nation position, they want to change the government in order to leave the tax system and the housing market exactly as it is, and we're not prepared to do that because there is a broken status quo in housing. It's locking too many people out of that Australian dream of owning their first home, particularly young people.
We're delivering real change here and when you deliver real change like this economic reform, particularly tax reform, it's always contested, it's always contentious, there will always be the usual partisan scare campaigns. But it's really important that we make this change because this is about making it fairer for first‑home buyers, it's about cutting taxes for Australian workers again and again, and it's about better aligning in a fairer way the tax treatment of labour income and asset income.
That's what matters most. There will always be people who argue for the status quo, but the status quo isn't working for too many Australians and particularly young Australians.
Glenday:
Quickly on this, because I want to get to another topic, business groups are urging you to go further. I think there will be some people watching this morning thinking, 'Well, if you've changed your mind once, what's to stop you doing it again?' Are you going to have to make further concessions to get this through the Senate?
Chalmers:
First of all, on the turnover thresholds, we consider that to be final now. We'll seek to legislate that in the parliament in the next couple of weeks and it means - as I've said - 100percent of active small businesses, 98percent of all active businesses will get concessions and carve‑outs, so we consider that to be a finished piece of work.
But the consultation paper we put up yesterday on start‑ups is all about guiding the consultation that happens from here in the usual way. Again, the Tech Council welcomed that, other parts of the start‑up sector welcomed that as well, so some of that work is ongoing.
Glenday:
Just on a different issue, there's only a couple of weeks until the fuel‑excise cut ends. Are you considering extending it slightly, maybe get families through the school holidays? It is a fair bit of cash that you'd have to spend to do that.
Chalmers:
Well, this is a really important way that we're helping people with the cost of living. We have been able to get some of the edge off these petrol prices that spiked in March because of the war in the Middle East. And so we stepped in and stepped up to provide this really important help with the cost of living to make petrol and diesel a bit cheaper at the bowser than it would otherwise be - a really important part of our efforts to get people through this difficult period.
We've said throughout that we are reviewing that on a week‑to‑week basis, we have been doing that. Obviously we'll need to make a decision between now and the end of the month-
Glenday:
But it's only about a week and a half-
Chalmers:
- but that cost‑of‑living help is really important.
Glenday:
Which way are you leaning? Are you leaning towards extending this for just a short period of time to take the edge off for families over the winter school holidays?
Chalmers:
Look, we're reviewing it from week‑to‑week. We've said that for some time now. It is important cost‑of‑living help, we recognise that. It's one of the ways that the government is stepping in and stepping up to help people with these cost‑of‑living pressures. We will continue to review it.
Obviously there's only a little while to go now until the end of the month. We've kept it under more or less constant consideration, and we'll make our final views known before long.
Glenday:
Do you have a leaning on this? You seem to be at least to the idea of extending it for a bit longer.
Chalmers:
We'll have those conversations in the usual way in the Expenditure Review Committee and within the government. When we come to a final view, a concluded view, we'll make that view known. It's a really important cost‑of‑living help, we understand that, we keep it under constant review. It has been part of our considerations for some time now, as we've said publicly over and over again. There's only a little ways to go for the rest of June now, and so we'll make our final view known before long.
Glenday:
Jim Chalmers, thank you very much for joining us this morning, and battling against the beautiful sound of the birds there on the New South Wales Central Coast.
Chalmers:
It is beautiful here on the Central Coast of New South Wales. I love it.
Glenday:
Thanks very much, Jim.
Disclaimer: Curated by HT Syndication.
