Wednesday, 28 October 2026

Topics: inflation; interest rates; spending; fuel excise; superannuation; productivity.

E&OE……………………..

Tim Wilson: It’s a bad day for Australian households. At a time when they're already drowning under higher costs, mortgage rates, and going to the supermarket and paying more and getting less. This inflation data has revealed everyone's worst fears. The government, because of its spending addiction, consistently dares the Reserve Bank to increase interest rates. And the numbers today show that underlying inflation persists because of the government's spending addiction and sets the Reserve Bank up to have its hands forced next Tuesday for a potential interest rate rise. Australians desperately need hope. There will be a lot of households, families sitting around the kitchen tables of the nation trying to figure out what is left to cut. Small business owners who will take this inflation data as a kick directly at their future opportunity and their hope. The government and its spending addiction continues to fuel Australia's inflation crisis. I know the Treasurer likes to come up with excuses. Well, Australians can't pay their mortgage with your excuses, Jim. Australians desperately need hope, and what they're facing is a taxaholic Treasurer who's obsessed with and addicted to spending, and that is forcing up inflation, higher interest rates, and when Australians go to the supermarket, they're paying more and getting less. The only solution, because the Treasurer seems unable to kick his spending addiction, is for the Prime Minister to seriously consider the position of his Treasurer. Because that is the only way that we might get a change in policy. This is the government, this is the economy that Labor has built, and it's one that's crushing families and crushing small businesses and daring the Reserve Bank in a game of interest rate chicken to hike rates next Tuesday. We've had four increases in interest rates this year, 16 over the life of the Albanese Government, and every time there's higher inflation, there's a risk of higher interest rates at the next Reserve Bank meeting. Australians have struggled to absorb the higher costs associated with the Albanese Government's active inflation agenda. Australian households have struggled with the Albanese Government's active inflation agenda and what that has meant for higher interest rates, and for higher prices at the supermarket, that means they get less. A change in policy is needed, otherwise interest rates will go up and Australian households and small businesses will be crushed.

Journalist: Mr Wilson, over the past 12 months we've seen transport group figures have risen by 8.7%, monthly terms automotive fuel up 9.4%. [inaudible]?

Tim Wilson: The rise in underlying inflation increased in July of 2025. That's when underlying inflation went above the RBA's target band, and it's only increased since then. The consistent problem is the Albanese Government's active inflation agenda because the Treasurer is addicted to spending and it is forcing up inflation and interest rates on Australian households.

Journalist: [inaudible]

Tim Wilson: On Monday, we released a series of savings that we have put forward to put downward pressure on inflation. Bureaucracies that don't build homes, bureaucracies that don't cut emissions, making sure that future non-citizens don't receive welfare, making sure we end corporate subsidies. We believe in backing Australians and Australian families ahead of wasteful bureaucracies and wasteful government programs. The problem we've got is the government can't kick its spending addiction, and the more it continues to spend, the more pressure it puts up on inflation and the more pressure it puts up on interest rates.

Journalist: Mr Wilson, under the Coalition's policy, the fuel excise would be halved right now because of the price of oil. You haven't explained how that would be paid for. It's not coming out of the savings on Monday. How would that be paid for?

Tim Wilson: Well, politely, that's not correct. Based on the forecast for the price in the budget, there's been an increase in corporate tax revenue which would offset the consequences associated with a fuel excise cut. What hasn't been explained is how Australian households are going to pay for the higher cost of higher interest rates under the Albanese Government. The government keeps turning around to Australian households and telling it to pull its belt in when the government will not do the same. We've already outlined a series of saving measures because we understand that if the government pulls its belt in, we can get inflation down, we can get interest rates down, and most importantly, we can back Australian families and small businesses.

Journalist: Just on fuel prices, do you think the government should cut the excise now?

Tim Wilson: We've already proposed a fuel price shield that means that there would be a reduction in the tax or the excise applied to fuel because we know that the impact isn't just going to be on households, though it will be. The cost of diesel goes through every part of our economy, from farmers to mining to freight, to make sure that the food that winds up at supermarkets Australians can afford. And that's why we put forward a fuel price shield, because we understand that if prices at the supermarket go up, the cost of putting dinner on the table goes up. And when Australians can barely afford to keep their homes through rising interest rates, rising food prices isn't going to help Australian families get ahead.

Journalist: Given international factors at the moment, do you believe purely by government reining in their spending that inflation would be back within the Reserve Bank's target?

Tim Wilson: Australia has been left completely vulnerable to international factors. We have the highest inflation in just about the advanced world. We know that inflation has been rising consistently before a single bomb was dropped on Tehran, and that's because of the government's active inflation agenda, because it cannot control its spending addiction. If the government hadn't consistently driven up inflation, we would obviously be less exposed to international factors. This is a classic example of what Labor does. They don't think about the long-term consequences, they don't hedge risk, and they continue to indulge in an active inflation agenda which hurts Australian families. And when international factors come along, it only compounds the harm.

Journalist: Just on the question, given the international factors that are there, through pure government lack of spending, savings, tightening the belt, could inflation be back within the Reserve Bank's target right now?

Tim Wilson: It's entirely possible to get inflation back within the Reserve Bank's target. The problem we have is every time the government says they're cutting $2 of spending, they're going on and spending another $3. They're actively contributing to the problem. I remember when the member for Moreton in parliament only a few months ago kept begging the question of what is it that people expect the government to cut. Yesterday in front of the parliament, she said we've got to throw the kitchen sink at cutting spending to get inflation down and interest rates down. Whether it's the Reserve Bank, whether it's the International Monetary Fund, or whether it's the Labor backbench, nobody believes Jim Chalmers's BS spin anymore. The reality is Australians are sick of it. They're sick of the lies, they're sick of the rubbish spin that Jim Chalmers is putting forward, because they know they're the ones who are paying the price for his active inflation agenda and his spending addiction. Households are breaking. Small businesses are breaking. And the only answer Jim Chalmers can give Australian households and small businesses is let them eat inflation and let them eat taxes.

Journalist: Do you have a view on this One Nation policy of letting people dip into a quarter of their super guarantee? Is that a good idea, or would it be inflationary?

Tim Wilson: It's not the focus at the moment. Our focus is on how we get government spending down so we can actually address the root cause of inflation. Right now, we've put forward $31.3 billion of savings because we understand if you get inflation pressure down, the pressure goes off Australian households. Instead, the solution from One Nation is to let inflation rip and then get people to draw down on their savings. It's not a long-term solution, it doesn't solve the problem, and it allows Jim Chalmers to keep his spending addiction and his active inflation agenda.

Journalist: One of the big problems at the moment is productivity and the speed limit that that is putting on growth. What about the changes or the cuts that you've outlined, [inaudible]?

Tim Wilson: The only way you're going to get productivity in this economy is to get costs for businesses down. At the moment, the government keeps increasing the cost of energy, the increase of employing Australians, and putting more costs onto small businesses that are already struggling to keep their head above financial water. Businesses in their first five years are the most likely to be productive, yet they're the ones that the Albanese Government is doing its best to try and suffocate. Our focus is on how we build a sustainable economy focused on growth so it can outstrip the size of government, back in Australians, get inflation down, and most importantly get interest rates down so Australians can afford their homes, afford their mortgages, small business can afford finance, and Australians don't go to the supermarket and pay more and get less. Thank you.

[ENDS]