5 May 2026

Doorstop - Melbourne

E&OE......

Tim Wilson: Thank you for joining us this afternoon. This afternoon, the Reserve Bank has increased interest rates by another quarter of a per cent, sending once again a clear message that the government has failed in trying to contain inflation. The Treasurer has said consistently that the Iranian conflict is to blame, but the RBA has made it clear today in their statement that if the Iran conflict ended tomorrow, that Australia would have an inflation problem. Australia had an inflation problem in the second half of last year, it has continued into this year, and that's the basis that Australians are going to pay higher interest rates. More importantly, the Reserve Bank today in its statement has made assumptions that this government will not get inflation under control and interest rates could get as high as 4.7% and stay there. The Reserve Bank in its assumptions has made a clear decision that they are not confident that the Treasurer is going to get the inflation problem under control. The Treasurer has consistently poured debt petrol on the inflation fire, and Australian households are paying the price because of Jim Chalmers' active inflation agenda.

Journalist: Can I get your response to reports of a possible income offset in the budget for Australians who pay tax?

Tim Wilson: What we know is that because the government won't get inflation under control, any measure, any earned income offset is likely to just be consumed by inflation as a consequence of this government's active inflation agenda. The tax cuts that this government has offered to date have been consumed by Jim Chalmers' active inflation agenda, and any earned income offset is likely to experience the same problems. This government has a consistent pattern of behaviour, which is to fuel inflation, then tax the inflation, then spend that inflation, and keep the cycle going. And until they stop pouring debt petrol on the inflation fire, Australian households will continue to pay a high price.

Journalist: The RBA statement doesn't point to public spending as a factor in its decision to raise the rate; that was a point raised by the Treasurer just now. So, I mean, are your accusations around the government just playing politics?

Tim Wilson: Well, the Reserve Bank outlined in its statement today that inflation was a problem for Australia in the second half of last year. The Iran conflict wasn't around in the second half of last year. Public spending continues to fuel the demand that is driving Australia's inflation pressure. Until the government acknowledges this, tells the truth, and starts to address it—and the Treasurer is already tacitly admitting it by boasting about how much he claims he is going to cut from public spending in next week's budget, let's wait and see it being delivered—we are clearly going to see a persistent inflation problem for Australia.

Journalist: How much blame do you place on Donald Trump for continuing this war in Iran and the continued blockade of the Strait of Hormuz?

Tim Wilson: There's no doubt that there's an influence from the Iranian conflict, but the underlying inflation rate based on ABS data last week was 3.3% above the target band. So, the persistent inflation problem is off the back of public spending and Jim Chalmers' active inflation agenda. The Iran conflict is compounding it, but the root cause of it starts in Canberra because they are the ones who are driving it.

Journalist: What do you think this signals for a possible rise in unemployment and stagflation to the economy?

Tim Wilson: Well, there are a lot of moms and dads sitting around the kitchen tables of the nation tonight who will be very worried, not just about where we are, but the fact that the RBA is assuming that interest rates will continue to rise and stay high at 4.7% for the next couple of years. That means that Australians' standard of living is at very serious risk of going backwards under Jim Chalmers' active inflation agenda, and of course, it raises questions about the future of the economy as well. That's why we need the government to stop the spending binge, stop pouring debt petrol on the inflation fire, and have a pathway to a sustainable economy for the future that doesn't seek to penalise moms and dads of Australia.

[ENDS]