Interview with Tom Connell, Sky News, Politics Now

Wednesday 6 May 2026

Transcript

Interview with Tom Connell, Sky News, Politics Now

Topics:Federal budget, NDIS, income tax, Inland Rail

E&OE ....

Tom Connell: In a few days, but let's go to my first guest today, Shadow Treasurer Tim Wilson, because there is plenty to react to already. Thank you for your time, starting with today's announcement, so $10 billion in the priority jet fuel and diesel. Is that the right priority? Do you back this announcement?

Tim Wilson: Well, it's nice that the Prime Minister has finally focused on fuel supply and for security for the country. Um, we know that we made an announcement of $800 million a few weeks ago, but we were focused on making sure we could have 60 days of fuel. The Prime Minister seems to have come in at 50 days. I still remember standing in, or sitting in the House of Representatives when Chris Bowen said that there was no crisis in fuel supply and that people who were saying otherwise were being hysterical at the start of this crisis. Um, and of course, as time went by Thursday he was saying, um, that we're now in a national crisis. Now, you know, months later, the Prime Minister is finally acting, um, in line with the budget.

Tom Connell: All right, so I'm going to take that as a quasi-backing, slightly different plans, and obviously the government saying they'll fund this all the way. The reason for fewer days and a bigger price tag. The rebate for so-called working Australians, so not a rebate if you've got an income just from investments, so $200-$300. Is this, do you support this, or is this going to hurt inflation and this should not happen?

Tim Wilson: Well, again, we've always got to be careful about these announcements, these things that are being leaked out of the government's budget bunker. We don't know whether deliberately or whether it's done maliciously, um, but, uh, of course, I've always supported lower taxes as a general proposition. Um, the question is how the government is going to do it. We need to see the detail to understand how the government is going to seek to do so, because, um, we know that the Treasurer has a long history of promising one thing and delivering something different. I'll give the example of the savings that he claims he's delivered to the budget of $114 billion, but what he leaves out of that conversation is that $223 billion he's then gone on to spend, um, so there hasn't been savings at all.

Tom Connell: Right, but in the inflation environment we're in right now, if this announcement is as it's been suggested, $200-$300 and it happens at the end of this financial year, so we're talking a one-off hit, not means-tested, is that something you would not support given the inflationary nature of that payment?

Tim Wilson: Well, I have to see the detail, Tom. I'm not trying to be obtuse, this is very important to see the detail because of the government's track record. You just need to look at what they did in the context of income tax. They've made a series of promises, um, which have been wiped out by inflation, and when the government simply hands, gives with one hand and then takes with inflation with the other, it doesn't deliver any real benefits or improvements to Australians and can have a much bigger long-term compound effect. So, um, I don't think we should rush to just support things if they're just going to stoke inflation.

Tom Connell: So is that the key measure? If this is going to stoke inflation then you won't support it?

Tim Wilson: Well, you're trying to, um, box me into a position. I'll wait and see what the government puts forward, but we know their history, we know that they have offered tax cuts before, they've then been wiped with inflation because they can't control their spending addiction and it's consistent with their economic approach: stoke inflation, tax the inflation, then spend the inflation, which just stokes inflation. Um, and Australian households, and particularly low-income households, can't afford that level of deceit.

Tom Connell: Right, but I'm, uh, trying to establish your principle on that and a payment that if it hits accounts, you know, at the end of this financial year, it's hundreds of dollars and it's not means-tested at all, it goes to everybody, that would be counter to what, for example, the IMF has said should happen and what the RBA has indicated should not happen.

Tim Wilson: Yes, the IMF has said very clearly that this sort of approach risks being inflationary. Yesterday Michelle Bullock in her press conference after the interest rate rise flagged very clearly, um, that measures that simply hand out more money to Australians at this inflationary time is going to contribute. That's why when, as an example, we offered a cut to the fuel excise, we did so deliberately providing inflation offsets, mindful of the impact that could happen. Now the government doesn't seem that interested in, in that, but I again, I go back to the point. It's consistent with their economic model: stoke inflation, tax inflation, collect inflation, and then keep the cycle going.

Tom Connell: The spending discipline that they're pointing to, the NDIS, will the coalition back this as is? Is this a good amount, the right amount of savings to this program, which just about everyone agrees is not sustainable at the moment?

Tim Wilson: Well, everybody agrees it's not sustainable because it isn't sustainable. The National Disability Insurance Scheme was supposed to cost about $15 billion, we're now at about $50 billion and it's trending towards $60 billion. Um, and so, you know, we'll look very carefully at every single measure to make sure, um, that it's working towards the sustainability of a system. But one of the things that the government has undercooked, I think, is a focus on the fraud and corruption within the system, which is anywhere between 10% and 20% conservatively. Um, and so, you know, I'd personally like to see tougher measures on the fraud and corruption in the NDIS. Uh, I'd also like to see the Health Minister actually deliver the support for the scheme from the states. At the National Press Club, he made a series of statements about what they were going to do to drive reform in the NDIS. It's conditional on state support, and a lot of the states have, uh, already signaled they are not very interested in heading down the same pathway as the Commonwealth. So that raises, uh, big questions, not just about whether we support it, but whether they can deliver.

Tom Connell: I think most are looking into it, Queensland in particular a hold out. But are you saying though, I understand what you say about fraud and Thriving Kids needs to get agreement, but what you've seen so far broadly fits what needs to happen? Is that fair enough to say on the NDIS measures? We've got a fair bit of detail about it.

Tim Wilson: Well, we're still going through the process of our party processes, but I've been explicit in saying we need to do more to attract, to target the fraud and corruption in the system, and that should be the first priority. Um, and of course, you know, we'll consider the rest of the measures, but, uh, anything that makes the, the system more sustainable we're obviously open to considering because, uh, the government has basically created a honey pot for fr, uh, fraud and corruption and that has real and serious and material impacts for Australian taxpayers. But in addition to that, the volume of money going out through these schemes is also stoking inflation as well.

Tom Connell: Okay, I want to ask you about Inland Rail, that announcement today that Labor won't, uh, continue to go on with that scheme. The original price tag $16 billion, and now $45 billion. So given the value, clearly value for money was dropping so significantly, was it fair enough this is now not expanding further?

Tim Wilson: Well, the, the, there's a big question there about what the government is going to do with that money. And it seems like they're just going to turn around, take the money from the Inland Rail scheme and, and put it towards the Suburban Rail Loop in Victoria. This is very important, Tom, because the Suburban Rail Loop, we know there's organized crime and bikie gangs operating on it, um, across Victoria, across, you know, southeast metro Melbourne. I've written to the Prime Minister asking him to do a simple audit of federal money and whether it's financed way into organized crime and corruption through the Suburban Rail Loop and other big build projects. He's refused to do so. We've asked for this sort of action in parliament. So I'm deeply concerned about money going from one project to another one where we know bikie gangs, organized crime, um, seek to take the most advantage from it.

Tom Connell: So that's your view on Suburban Rail Loop, fair enough, and that's more for Labor to answer on the spending on the Inland Rail itself. Uh, questioned business case according to the review by Kerry Schott. Remember it went from $16 to $45 billion, it's cut through a lot of major towns and they're not happy with it, it's described as having a flood risk, community's not consulted properly and doesn't even connect properly to ports. So just looking at this spending, is that fair enough to not proceed with it given the blowout in cost?

Tim Wilson: Well, it, it comes down to whether, uh, the government can make the case that Australian productivity and economic growth, uh, has, uh, no reflection or no consequences from the extension of that, um, of the Inland Rail program. Um, you know, it needs to stack up like all other projects need to stack up, but, um, we also need to make sure that the, str, uh, our industries and our agriculture industries are connected, um, to make sure that they can provide for the future of, uh, Australian industry. But again, it comes down to where's the money going? The government at this point is taking the money and giving it to projects that they know are actively harvested by organized crime and criminal bikie gangs. And the fact that the Prime Minister seems to take no interest in whether federal money, taxpayers' money, is financed way into, uh, ill-gotten hands is extraordinary.

Tom Connell: Hmm. Right, but on the Inland Rail itself, not exactly a full-throated defense there from you. You'd think it's fair enough to have a pretty close look at this and not continue given the, the issues it's had and the, and the blowout in price tag. Is that fair enough to say?

Tim Wilson: Well, every project should be, um, assessed and continue to be monitored. I'm not arguing against that. But I'm concerned that, you know, they're making these bold claims that they're, they're cutting one program, they're taking that money from what at the end of the day is an honest project trying to build the economic future of our country and handing it over to another project that is harvested by organized crime, basically to prop up the Victorian, the failing Victorian Labor government because they make big announcements that they can't then go on and fund and deliver.

Tom Connell: Tim Wilson, appreciate your time. We'll talk to you on the other side of the budget.

Tim Wilson: Thanks.

[ENDS]