Thursday, 30 April 2026

Transcript – Interview with Sally Sara, ABC Radio National Breakfast

Topics: CPI Data, Inflation, Capital Gains Tax

E&OE

Sally Sara: Now and the political response to the surge in inflation for March consumer prices increased at an annual pace of four point six percent up from three point seven percent in February Tim Wilson is the shadow treasurer and joins me now Tim Wilson welcome back to breakfast thank you for having me Sally let's hear first stuff from the Treasury Jim Chalmers he had this to say a short time.

Jim Chalmers clip: “Well primarily the pressure on prices is coming from petrol and diesel fuel prices and you know even today the global barrel price for oil is up near $120 and so you can see the impact that has primarily when it comes to fuel cost that was overwhelmingly the driver of the higher inflation that we saw in the numbers released yesterday.

Sally Sara: The Treasurer speaking a short time ago. Tim Wilson, do you believe that the war is the big driver in this spike in inflation?

Tim Wilson MP: Well, despite inflation hasn't happened in one month, the spike of inflation has happened over more than 12 months when the Reserve Bank Governor came out and increased interest rates last month, she said off the back of inflation data from the second half of last year. The government has consistently poured debt petrol on the inflation fire and we've gone into this crisis in a worse position than just about any other country in the world. The problem is we've had persistent inflation and yes Iran's absolutely had an impact but it's because we've already had a raging inflation fire running.

Sally Sara: Does the opposition want the government to extend the reduction in fuel excise beyond the 1st of July, giving these inflationary pressures on ordinary consumers?

Tim Wilson MP: Well, I think it depends on what happens in the context of the Middle East. It hasn't concluded, the conflict hasn't concluded and of course the current excise cut has not concluded. The one thing we've said is there should be inflation offsets so it doesn't keep stoking the inflation fire. The government has a different view on that. They think they should keep pouring debt petrol on the inflation fire and we're seeing the numbers both before the crisis and now during the crisis.

Sally Sara: Do you think the cut in excise has helped those Australians who are struggling?

Tim Wilson MP: We're the ones who originally proposed it and so there's no doubt that reducing excise has helped as a temporary measure but if you don't provide inflation offsets you give with one hand and you take later with the other and that's what the federal government is doing right now because that he's simply not taking the issue of inflation seriously.

Sally Sara: The opposition has been calling for the government to cut spending as one way to help combat inflation. The government has already announced major reforms to the National Disability Insurance Scheme in an attempt to contain spending. Do you think it's likely that the government will be able to limit growth in the NDIS significantly?

Tim Wilson MP: Well, the states are already saying that they're not going to sign up to the proposals being put forward by the federal government. The government has been big on spin and announcements to date. Delivery has been entirely different, whether it's their housing agenda or any of the other programs they've sought to go on and deliver. That's why we outline three three key tests for the federal budget. One is to lift living standards. One is to restore Australia's security and the third one is to restore honest government where the government says something then goes on and delivers it.

Sally Sara: Cost of generating electricity across Australia's East Coast fell by 12% in the first three months of this year. Do you acknowledge that's partly because of the investment in renewables and batteries?

Tim Wilson MP: One of the things that worries me is that we're seeing a reduction in demand on energy because of what's happening in the economy overall. There are multiple drivers of energy prices but one of the thing that I'm concerned about is whether we actually have the energy that Australians need for the industrial base, we need to meet the challenges of the 21st century, restoring the strides that could have been made. Well, reduction in electricity prices will always be welcome for consumers and for industry. The question is whether we're investing and building out the future we need for our industrial base and to re-industrialise our country. The Iran conflict has highlighted, I think, to everybody very clearly just how important it is that we are a resilient nation. We can't do everything ourselves, but we do need to make sure that we have the base energy we need to support domestic industry and if prices are at unsustainable levels and don't encourage investment, then all Australians will suffer.

Sally Sara: Earlier I spoke to Sally Old, Chief Economist at the NAB, and she said while global factors are pushing inflation higher, there are also a number of domestic factors that are putting upward pressure on inflation as well. Let's take a listen.

Speaker 4: The cost of building a new house, that rose half a percent in a month, so it doesn't sound very much month to month, but if we annualise that, then we're getting something closer to six, seven percent over the course of a year, and that cost base has been steadily rising really over the last couple of quarters. And that's one of the things that the Reserve Bank frets a little bit about, because it's one the parts of the inflation basket that exhibits what we call persistence.

Sally Sara: That's Sally Old there, the chief economist at NAB. What would the coalition propose to deal with some of those domestic pressures? What would you do?

Tim Wilson MP: I first I just want to say I agree with Sally and she's highlighting the central point. We've seen 60% increase in the cost of new builds over the past six years. That's because the inflation problem is not a bug, it's a design feature of this Labor Government's active inflation agenda. They do this through the way they're driving money into public projects to benefit the CFMEU. It's increasing the cost on projects and that's flowing through to the cost of private investment through competition and demand for labor and skills, but also for the resources that people need to be able to go on and build housing. That's why you're seeing this persistent problem. It's an active and design feature of the Labor government's agenda.

Sally Sara: You're listening to Radio National Breakfast. My guest is the Shadow Treasurer, Tim Wilson. The government is reportedly considering making changes to capital gains tax. On capital gains and negative gearing, are there any versions of changes that the opposition is willing to support?
Tim Wilson MP: I'm not going to speculate when the government just keeps floating ideas out there without any substance behind them. What we know is the Prime Minister is trying to turn families against each other and start fights over the kitchen table about a redistribution agenda where it's about taking from parents to give to children. What the Prime minister isn't doing is giving the next generation of Australians hope about building a better future for self-starters who want to get ahead and creating an economic environment of opportunity. That's where... We're moving the capital...

Sally Sara: Would removing the capital gains tax discount, would that give some of that hope and more fairness?

Tim Wilson MP: I've yet to hear a single argument that increasing a tax increases the chance of giving economic opportunity.

Sally Sara: Removing an advantage for another group is the argument that's been put forward.

Tim Wilson MP: That's the argument the government has put forward, but the reality is if you want to give the next generation of Australians a chance you want to reduce the debt they're inheriting, it's currently teetering towards one trillion. The Prime Minister is asking everybody to pull in their belts except himself and you need to reduce income tax if you're going to give the next generation of Australians a better chance to get ahead instead of at the previous election, the coalition...

Sally Sara: At the previous election, the coalition voted against income tax cuts.

Tim Wilson MP: Well at this point all of the tax cut has been annihilated by the government's active inflation agenda they like to play accounting tricks that don't deliver but instead their plan now is to pull up the ladder of opportunity before young Australians get their first foot on the

Sally Sara: So there'll be no changes needed in your view to capital gains tax discount and negative gearing.

Tim Wilson MP: I'm not going to project out what our position is going to be at the next election. It's still two years away and potentially three catastrophic budgets away. What's your position now? Well, we haven't even got a position on what the government's doing yet. What I've said consistently and will keep saying consistently is we want to back young Australians have pathways to opportunity. We want an economy that backs in self-starters so they can get ahead and that's by rewarding putting labor and capital to work. The government's answer is simply to redistribute tax and inflate and then tax the inflation.

Sally Sara: Tim Wilson, and thank you for joining me this morning. Tim Wilson is the shadow treasurer.