Tim Wilson MP
Shadow Treasurer

Wednesday 18 March, 2026

Topics: Jim Chalmers' inflation, Interest rates, CFMEU-Labor Corruption

E&OE

Shane McInnes: Joining me on the line this morning is the Federal Shadow Treasurer, Tim Wilson. Tim, good morning to you, I appreciate your time.

Tim Wilson MP: Thanks Shane, lovely to chat to you.

Shane McInnes: How much of the inflation and the interest rate rise is an effect of government spending in your mind?

Tim Wilson MP: Well it's not about what's in my mind, it's what the Reserve Bank has been saying. Yesterday, the Reserve Bank Governor said that this interest rate rise was a response to inflation pressure in the second half of last year. So we unfortunately, we haven't even experienced the consequences of conflict overseas. And we know what's driving the private demand and it's debt spending by the Federal Government in Canberra. And so unfortunately this is totally a consequence of debt spending by Jim Chalmers and that's why until he acknowledges it, admits it and then seeks to constrain it, we're under continued and sustained inflation pressure.

Shane McInnes: What do we do then, Tim, and does it come to Jim Chalmers to go, okay, been spending too much. Is it time to ease that spending? And do you expect, come May, for that Federal Budget that we will see significant savings in that budget? Because if we don't and there's more pressure on inflation, that means middle-class Australians, again, are going to face the wrath of higher interest rates.

Tim Wilson MP: Well unfortunately Jim Chalmers has been in complete denial. Remember this time last year he said that we had turned the corner on inflation and interest rates. Well in one sense he's right we've turned a corner to an upward trajectory because he's continued spending. What does he need to do? He needs to stop pouring debt petrol on the inflation fire. Labor Governments need to stop giving money to organised crime that's inflationary through the CFMEU-Labor cartel. They need to stop around $5 billion a year in NDIS corruption. All this is public money going in to fuel inflation and corruption and fraud. There are very simple things the government can do, but they refuse to acknowledge that's a problem. They refuse to acknowledge that inflation's a problem, this is a government in denial and until they do so, inflation pressure will continue, interest rates will go up and Australians will feel the pain.

Shane McInnes: It's easy to throw punches, Tim. So what would the opposition do? Let's say tomorrow, all of a sudden, magic, click the fingers, you're the Treasurer of Australia. What do we do to ease those inflationary pressures and bring interest rates down or at least hold them steady so that homeowners can have some confidence that they can get their budget together as opposed to looking ahead two months going, are interest rates gonna go up once again?

Tim Wilson MP: This is why I say the starting point is stop public money... $15 billion, $15 to $30 billion has gone to organised crime to the CFMEU-Labor Cartel. I would stop that in one second with one stroke of a pen. I will stop feeding this type of corrupt behaviour through the NDIS corruption. The NDIA themselves have projected that 10% of the $50 billion of this program is going towards fraud and corruption. We now have reports on the weekend of nearly $500 million going towards childcare fraud, that should be the first place we start, is stopping not just the wasteful spending, but the fraudulent and corrupt spending that is putting upward pressure on inflation.

Shane McInnes: It can't just be all the fraud, and you can't just label fraud and corruption though as the problem that we have here with inflation. It's fair to throw arrows, it's fair given recent reports, but that can't be the only issue as to where we make cuts to ensure the inflationary pressures are eased. Go beyond the fraud and corruption for me, and where do we make cuts to ensure that interest rates aren't going to continue to surge?

Tim Wilson MP: I'm sorry Shane, they are a critical part of the conversation because the NDIS is one of the biggest areas of public sector growth and frankly the NDIA I think is underestimating the 10% that's going towards fraud and corruption. So yes, it's not the only part of a piece but gee it's certainly a very big part of it. It's a program that didn't exist in 2013, it has now exploded to more than Medicare and we know a very significant chunk of it is going towards fraud and corruption. So I can't agree with you. You've got to start with the obvious things there. Of course then you've got look at programs of reform to make things more efficient, reduce waste and make sure that services are getting to the Australian people need, at good value. But when we know the pile of money that is being handed over through public projects without accountability and is ending up in the hands of criminals, I just can't agree with, you can discount that because it's some of the biggest areas of public expenditure and public expenditure growth.

Shane McInnes: I don't disagree that it's expenditure, but I just think there has to be a wider net cast as to where the savings can be found to ensure these inflationary pressures are eased and the government spending isn't out of control. We saw a report last month, I think it was, Tim, whereby it was rumoured that the Prime Minister had gone around saying that in this next budget there can be no nice-to-haves. Nice-to-haves need to put a line through them, we can't have them, in your mind, something like the suburban rail loop in Melbourne. Is that a nice to have or a must have?

Tim Wilson MP: Well I'm not going to get into individual specific projects and undercutting my state colleagues but it's pretty clear to me that the suburban rail loop is just a giant money pit.

Shane McInnes: Well the federal government's putting money into it, so I'm asking you, would your side of politics put money into?

Tim Wilson MP: I say consistently I don't believe that we should put public money into it. Of course we want public infrastructure that Australians need but the suburban rail loop has been a consistent money pit under this government and of course they're using the back door also to destroy communities by building major towers in those communities including in my own electorate in parts of Cheltenham, destroying communities without any sense of responsibility or accountability to those communities. So there's multiple problems with this project. The project is extremely expensive and what's become increasingly obvious to everybody is it's a pathway not to give benefits to Australians, it's pathway to give public money to the CFMEU and organised crime.

Shane McInnes: Before I let you go, I mentioned the fuel excise just a moment ago. Your colleague Scott Morrison cut the fuel excise in half when oil prices surged as a result of the conflict in Ukraine. Should the government be doing the same this time around?

Tim Wilson MP: The challenge is: then, interest rates were very low, inflation was very low so the government had flexibility if it was going to have an inflationary effect. We already have an inflation fire burning and so the challenge for the government is how are they going to do that without stoking inflation further, undercutting the Reserve Bank and increasing interest rates further. That's the problem the government now faces, it's a problem that everybody has if they do this, the Reserve Bank's hand was forced yesterday to increase interest rates of public spending at the back end of 2025. And if the government continues on that pathway, they're going to force the Reserve Bank to increase interest rates further. So if you sometimes take a measure early, it can actually have a longer tail.

Shane McInnes: Tim Wilson, I appreciate making yourself available this morning.

Tim Wilson MP: Thanks Shane, take care.

Shane McInnes: Federal Shadow Treasurer, Tim Wilson.

ENDS