Tuesday 12 May 2026

Interview with Channel 10 News, Budget program

Topics: Federal Budget

E&OE...

Ashleigh Raper: Tim Wilson, the Treasurer says this is a responsible and ambitious budget. How would you describe it?

Tim Wilson: I describe it as a budget built on broken promises, higher taxes, lower living standards and fewer homes. The most shocking thing in this budget is that they have failed the most basic tests around improving living standards for Australians. Over the life of this budget, real wages are going to decline by 3 percent. We're going to see a reduction in defence spending and more importantly, it admits, the documents admit with their high tax agenda, that you are going to have fewer homes being built in Australia.

Ashleigh Raper: Now obviously you're going to argue that this is a broken promise, it is a broken promise, the changes to property tax, that's not in dispute. But are you going to support these changes to negative gearing and capital gains tax?

Tim Wilson: The government's own documents admit that these changes to capital gains and negative gearing will do two things. The first is reduce the volume of housing that's built by 35,000 over the next decade. The second thing it admits is it will increase rents on young Australians. Renters tend to be the people who are saving up to buy their own home deposit. Not only are rents going to go up, under the capital gains changes, if they invest their deposit so they can bring that forward, they're going to pay higher taxes as well. So it's simply impossible to support these measures based on the government's own metrics.

Ashleigh Raper: But by not supporting it, aren't you arguing against helping young Australians get into their first home?

Tim Wilson: Well, I don't believe building fewer homes helps young Australians. I don't believe higher rents help new Australians. I don't believe taxing their deposit is helping young Australians. I think young Australians get ahead by having a chance to earn good income, to make sure that they pay as little taxes as possible in the stages where they need to be saving for the future, not tracking higher taxes.

Ashleigh Raper: The $250 worker tax offset is not going to be seen for another two years. Is it helpful?

Tim Wilson: Well, it will be helpful in smoothing out some pain for some households but let's be realistic. Every single tax cut the government has taken has ultimately been eclipsed by inflation. And we've seen this with all the announcements they've made at every single point. The tax cut they took for the last election was overtaken by inflation by December last year. What they're announcing now will be taken over by December of this year. So the measure that's been taken by the government is just smoke and mirrors to try and give them an announceable on budget night, it won't actually help households get ahead.

Ashleigh Raper: Tim Wilson, thank you.

Tim Wilson: Thanks, Ash.