Wednesday, 14 October 2026

Topics: trusts legislation; small business; IMF; inflation; interest rates.

E&OE……………………..

Peter Stefanovic: Labor will introduce its 30% tax on trusts today, which is a key plank of its controversial May budget, despite ongoing uncertainty over businesses and family restructuring. Joining us live is the Shadow Treasurer, Tim Wilson. Tim, what are your thoughts on this being put up today with so many loose ends?

Tim Wilson: Well, the Government clearly hasn't resolved the problems of its federal budget and particularly this new assault on small businesses. We had the Treasurer going out there saying he's still consulting state governments about the issues around stamp duty, but what we know is David Janetzki, the Queensland Treasurer, has turned around and said, well, he hasn't called me. So, he's actually lying to his own caucus to maintain confidence. We know the Prime Minister is out there trying to rally the troops because they're so in the doldrums. To be blunt, I don't think the Government understands just how much of a train wreck its new attack on small businesses is going to be through its trust legislation, and frankly, it's going to explode on them.

Peter Stefanovic: Why would the states give up their stamp duty revenue?

Tim Wilson: Easy, they won't. Apparently, he's talking to some of the state Labor governments, and of course they're saying they're still in discussions with the Treasurer, which means we're not really interested, thanks, Jim. In fact, there was a report of a 25% drop in stamp duty revenue from New South Wales this week. Exactly, so the idea they're just going to give it up to help Jim solve his political problems, which we need to remember he didn't take to an election and actually said 50 times over he wouldn't do before the last election, is absurd.

Peter Stefanovic: Okay, so this won't get your support. The Greens aren't locked in yet, presumably it's off to an inquiry. Is that your read?

Tim Wilson: Well, it will absolutely be off to an inquiry, and this is a chance if you have a submission to make, go out and make it and tell the Treasurer how much you disagree with his deceit and how much you disagree with a new assault on small businesses. This Government simply has no empathy for struggling small businesses right now. They're struggling with rising costs, they're struggling with rising taxes, and the answer from the Government is to chuck $13.3 billion more of compliance on them to do nothing.

Peter Stefanovic: It's been a busy night of speeches last night, not just the Prime Minister, but the Treasurer as well, who we were just talking about. So, let's start there. Jim Chalmers is telling supporters not to mock One Nation voters as he forecasts 12 more months of economic pain. What are your thoughts on those comments?

Tim Wilson: Well, I welcome him saying we shouldn't mock other Australians, we should have a starting position based on respect. But yes, under his reign as Treasurer, we are likely to have at least 12 months more of economic pain. Yesterday we had data out from the International Monetary Fund, which said that Australians are going to have to endure higher unemployment, persistent inflation, higher interest rates under his regime, and his only answer is to turn around and whack small businesses and households with higher taxes.

Peter Stefanovic: Is that what we're going to need though, higher unemployment, to get inflation down?

Tim Wilson: Well, what's very clear is that Jim Chalmers is softening the nation up for his Paul Keating "the recession we had to have" moment. He likes to embody himself and represent himself as Paul Keating Mark II. It seems like he's going to try and deliver recession 2 like Keating did.

Peter Stefanovic: Yeah, I mean does it get 4.7%, it gets over 5%. Is that where you're forecasting things as well?

Tim Wilson: Well, that's what the IMF is forecasting, but it's pretty hard to see how with persistent inflation and rising unemployment and the Government continuing to tax households and small businesses that something's not going to break, and where it's going to break is unfortunately on households and people losing their jobs based on all projections.

Peter Stefanovic: Well, a couple of comments from the Prime Minister last night, too. He's vowing to keep on spending despite warnings from the RBA and the IMF to pull back because eventually he believes there will be a payoff. Will there?

Tim Wilson: The Prime Minister is completely out of his depth on economic policy, not just in terms of his honesty, but of course the practical consequences. We know full well this government is already the highest spending government out of the last 40 years excluding the pandemic. They've projected out 40 years of deficits, it's pouring debt petrol on the inflation fire, and that's why households are continuing to experience rising interest rates and of course higher prices at the supermarket.

Peter Stefanovic: Just one more, and these comments were interesting I thought too from the Prime Minister saying that the head of the Chamber of Commerce personally intervened asking the PM to roll back the banned credit card payments, so that basically overrides the Treasurer. How do you think that's going to affect their relationship?

Tim Wilson: Well, the Prime Minister has a kink for punishing small businesses and a fetish for humiliating his Treasurer. So, I see this as a consistent pattern of behaviour where the Prime Minister constantly goes in, overrides his Treasurer, humiliates him in public, so yes, I suspect it's going to sour the relationship somewhat.

Peter Stefanovic: Alright, Tim Wilson, thanks.