Tim Wilson MP
Shadow Treasurer

Monday, 16 March 2026

Topics: Inflation, Fuel Excise, Jim Chalmer's Inflation Fire

E&OE

Chris Kenny: Let's go now to Victoria and catch up with the Shadow Treasurer. Tim Wilson, actually, he's in Canberra as he joins us. Good to talk to you again, Tim. Just flowing on from this conversation, the economic repercussions of what's happening with the oil and energy crisis, we're expecting to see an acceleration in the interest rate increases. It seems to be a lay-down misere that rates will go up again tomorrow.

Tim Wilson MP: Well, until we see the RBA's decision, I'm not going to declare it done and dusted, but the RBA will know from the December data, the inflation data from December, which was well before anything in Tehran... Canberra's spending, and particularly pouring debt, petrol and the inflation fire, was already putting massive upward pressure on interest rates. That's why they've gone up already. And we're one of only eight countries...Out of eight countries in the world that are considering these things right now, we're the only one that are looking like it's going to be a rise.

Chris Kenny: It's a case of double jeopardy, though, for homeowners, isn't it? Because anyone who's squeezed by their interest rates at the moment is also going to be squeezed by increasing petrol prices, and then they're squeezed again by more interest rate increases. It seems a very blunt instrument that's going to hurt the people who can afford it least.

Tim Wilson MP: There's no doubt about it, Australian households are doing it really tough right now, and one of the most frustrating things is leading up to these events, there was constant calls for the treasurer to stop pouring debt, petrol and the inflation fire, to slow down the spending and the spending addiction of the Albanese Government. And they told everybody they didn't know what they were talking about. And so they've kept the fire burning and now we've had an international event come along, that is obviously putting much more pressure on the reserve bank. And that's why we're staring at this potential scenario tomorrow. It's deeply worrying for households who are already doing it tough.

Chris Kenny: I mean, there's no doubt that the underlying inflation problem we've got has been caused by their spending in large part, and it was underway before this crisis hit, but it looks like it's going to push the bank along because of what the increasing oil prices does to inflation. I want to get to potential short-term remedies here. Of course, Scott Morrison, when he was in government, halved the petrol excise to give people a bit of relief. I notice the South Australian Liberals are calling for that now. Should that happen?

Tim Wilson MP: Well, this is ultimately a question for the Treasurer, but it's very clear to me that the adjustment of excise goes up twice a year, adjusted to inflation, and there's clearly going to be an increase associated with this conflict. The Treasurer's been in denial about that to this point. Obviously, the price implications are significant and severe for his budget, but that's what happens when you don't have spending under control as he is. I mean, this is one of those times where all your chickens are coming home to roost all at the same time for Jim Chalmers. He's avoided dealing with corruption, he's avoided dealing with spending problems and as a consequence his hands are tied in how he's going to responsibly respond to this crisis.

Chris Kenny: Alright, but a cut in excise gives immediate relief to consumers around the country. Your own colleagues in the South Australian Liberal Party in the last week of an election campaign are calling for it. Do you agree with their policy position?

Tim Wilson MP: Well, I don't make decisions based on television interviews. We look at these things very carefully, but I know that Australian consumers would very much appreciate any pause right now because they know very clearly that they're paying a lot at the bowser. Unfortunately, it may go up from here. We'll wait and see. That's gonna depend on part of what Andrew was talking about before. But we also need to know the consequences and the flow and consequences.

Chris Kenny: This is not about a television interview. This is a South Australian Liberal policy in the here and now about petrol excise. Do their federal colleagues support their policy or not? It relates to a federal excise!

Tim Wilson MP: I understand. And that's why I make informed decisions based on what's being put forward. But what we know is that there is room...

Chris Kenny You can't back their policy now.

Tim Wilson MP: Well, not without going through the proper processes, as we always do, Chris, but one of the things we do know is that Jim Chalmers has been in denial about the link between inflation and the increase in the excise to date, and I think he's got to come forward and say what he thinks the impact's going to be because...

Chris Kenny: The onus is on the government, and you're not the government. But I'm just a boy from the burbs, but I can't quite understand this. It's a South Australian Liberal policy to reduce a federal excise, and as the Federal Shadow Treasurer, you can't tell me whether you agree with it or not.

Tim Wilson MP: Well, I mean, I will always, of course, support lower taxes, Chris, but I take things through a proper process in terms of making announcements around tax. I don't just make them based on this situation. I can completely understand why the South Australian Liberals want to see a reduction...

Chris Kenny: But does that mean that you've got the South Australian Liberals calling for a reduction in a federal tax and they haven't consulted you?

Tim Wilson MP: Well, what it means is that they're making a request on the federal sphere. And, of course, they're more than entitled to be able to do so. I mean, I think everybody in Australia wants to see a reduction in the fuel excise because everyone's paying for the price at the bowser. As I said, I just take things through the proper process.

Chris Kenny: Alright, let's finish on a light note. As a Demons supporter, you probably found your voice yesterday and were singing the Demons song, but last week you were singing in Parliament.

[Recorded] Do do do do, do do. The treasurer did start the inflation fire. The inflation's burning, while the treasuer is squirming. The treaurer did set inflation fire!

Chris Kenny: Will you be singing in public anymore?

Tim Wilson MP: Well, I always want to keep the focus on inflation and making sure that the government is held accountable for the fact they're pouring debt, petrol and the inflation fire. And I gave 70 speeches that day on that topic, but everybody decided they wanted to focus on that one because it obviously said something, you know, important in a different way. I'm going to do everything I can to hold this government to account.

Chris Kenny: Well done, Tim. Thanks for joining us. And it's a grand old flag. They were singing that for the Melbourne Demons yesterday. Surprise win over St Kilda and it's great to have footy back.

ENDS