E&OE TRANSCRIPT
SPENCE DENNY, HOST: July 1. Winners and losers for the start of the new financial year. Measures do kick in today. Stage three tax cuts, energy rebates, local MP Amanda Rishworth joins us. Good morning to you.
AMANDA RISHWORTH, MINISTER FOR SOCIAL SERVICES: Good morning. Great to be with you.
SPENCE DENNY: Nice of you to join us. Look, I might just throw the question out for our listeners, if I can, please, Minister for Social Services. How do you feel with the commencement of these new financial measures this financial year? We know the dominant theme is cost-of-living. Are you more hopeful? Will this reduction in the amount of tax you pay or the rebates you get for the energy you use make a big difference to your life? I'd love to know your circumstances if you're on the minimum wage. How, how are you surviving? 1300 222 891. Amanda Rishworth, that's the big question here because there's a lot of…look I don't know if it's political or financial speculation… that giving more money to those people – I mean, clearly they need it – but giving more money out will actually contribute to inflation and that's the last thing the economy wants, isn't it?
AMANDA RISHWORTH: Inflation is a very big challenge and it's been a challenge that we've been firmly focused on, but we also know that people are doing it tough and so we do need to deliver cost-of-living relief. Now, I have to say that when it comes to the tax cuts, we made sure when Treasury did the modelling that our redesigned tax cuts that gave tax cuts to every person paying tax, not just some people that were paying tax, actually were not going to add to the problem of inflation. And when it comes to things like the energy bill relief and the Commonwealth Rent Assistance that will be coming in a few months’ time, that's actually put downward pressure on inflation because this is reducing the cost for people. So, these are really important measures along with the freezing the cost of PBS medicines, particularly for those on a concession card, they'll be frozen for the next five years at $7.70. But also for people not on a concession card, medicines will be frozen at $31.60. So, these are really important cost-of-living relief measures, but they've been done in a way that's been carefully calibrated, not to add to inflation. Also, the fact that we're on track to deliver the second surplus also adds to that fight against inflation as well.
SPENCE DENNY: Yeah. So, I'm not sure if the surplus is all that important to somebody who is basically having to work to pay for childcare?
AMANDA RISHWORTH: No, but of course, our focus has been on cost-of-living. When it comes to childcare, we've seen a real cut in the cost for people as a result of our cheaper childcare. So, we have been looking at all of those critically important areas of cost-of-living. But as you said, we have to ensure that we're fighting inflation and having back-to-back surpluses, in addition to this cost-of-living relief, it does help with that fight against inflation. That’s important for everyone.
SPENCE DENNY: What are the logistics for the energy rebate? This isn't, you know, people aren't going to suddenly end up with $300 in the bank, are they?
AMANDA RISHWORTH: No. What people will do is each quarter over the next year, they’ll see a deduction off their bill. And that's why the most simple way to deliver this $300 power bill relief was to give it to every household and it will be $325 for every small business. So, this is a deduction off your bill at each quarter over the next year.
SPENCE DENNY: Yet today there are stories everywhere about the challenges of surviving financially in South Australia. Specifically, a more than 40 per cent increase in South Australians who are defaulting on their electricity bill, median house prices in South Australia exploding and an 80 year old man dies in their car. This is not a society that feels very comfortable at the moment. I don't think that's unfair, is it?
AMANDA RISHWORTH: Well, there is no doubt people are doing it tough. There is no doubt that with interest rates that have increased as a result of the decisions by the Reserve Bank that people are doing it tough and we are looking at ways that we're able to support people. We, of course, also backed in a pay increase for minimum wage workers, who will now be getting a pay increase today. We've been putting laws in place to help get wages moving, which is an important part of the puzzle. But of course, people are doing it tough. And that's why we also do have to focus on reducing inflation. Inflation is nearly half from its peak in December 2022. We need to keep working on that and providing cost of living support where we can. And that's what we're doing and we'll keep working at that. To look at the fight against inflation, but also about providing responsible cost-of-living relief.
SPENCE DENNY: You are listening to 891 ABC Radio Adelaide Breakfast with Spence Denny filling in for Jules and Sonia at the moment. With us on July 1, the start of the new financial year, is Amanda Rishworth who is Minister for Social Services. The thing that sort of springs to mind for me particularly is, we brought up the childcare thing and I know these circumstances at the moment, even though there has been relief at the moment, there are families who are having to work – one person has to work to actually pay the childcare – which just seems at odds with the reason that people go to work.
AMANDA RISHWORTH: Absolutely affordable childcare is a really big challenge and one of our first issues or first actions we took as a Government was to significantly reduce childcare fees, but our work isn't done on that. Obviously, we have the Productivity Commission looking at how we can deliver affordable childcare in this country, and they're looking at it very closely and we will be expecting to get that report very shortly. But we have, of course, since we've been in Government, looked at how we can reduce childcare. But it is a challenge, as is Paid Parental Leave. From today, we are seeing an extra two weeks for Paid Parental Leave, a really significant boost on the Government paid scheme and that will keep increasing until we get to 26 weeks in 2026. So, for someone that has a baby from the 1st July this year, that will be in this year more than $20,000 to support them at the time of the birth of their new baby. So, we are looking at both childcare, Paid Parental Leave, how we support that women's economic participation as well.
SPENCE DENNY: I did ask for callers, so I should give callers a chance to see how they're going to respond to these changes that come into place today. What are you going to do with your energy rebate? Well, the money you get from tax relief, those sorts of things, what difference will it make to your life? 1300 222 891. Jim's on the phone from Coromandel Valley. Good day, Jim.
JIM, COROMANDEL VALLEY: Morning, Spence. Spence the tax cuts sound wonderful, but giving a tax cut to somebody on $200,000 doesn't seem to do much for those people who are on a fixed income. For argument's sake, people who are retired or simply on fixed incomes are going to suffer further because wage risers, for argument's sake and more money going into the economy will simply push prices up for everything that people buy. What about the government reduces, eliminates the tax on fuel for argument's sake, reduce fuel excise, which will give an across the board benefit to many, many more people. These cuts, these concessions that are being made are simply selective.
SPENCE DENNY: Wouldn't somebody on a fixed income, Jim, somebody who might have money invested, be beneficiaries at the moment, given the inflation rate and the effect it's having on interest rates, wouldn't people in that situation be deriving more income from the interest they get on their money they have invested?
JIM: If they've got enough invested, yes, perhaps.
SPENCE DENNY: Yeah. Jim, thank you, Mount Barker. G’day Dee. Hello. What's your situation?
DEE, MOUNT BARKER: Well, I just want to know why people on a Centrelink payment who are already getting less than minimum wage didn't get an increase, but minimum wage people did get an increase.
SPENCE DENNY: Right. I'll put that straight to Amanda Rishworth. Amanda Rishworth, is that fair?
AMANDA RISHWORTH: There are of course, people on fixed incomes, particularly Jobseeker and the pension, that are doing it tough. There have been a number of increases twice a year on Jobseeker and the pension, but in the last Budget we also increased the base rate of Jobseeker and other working age payments. So, we have been very conscious of that and with our rent assistance increase, which a lot of people on payments do get, and there was one in the last Budget and we're bringing in legislation to have this second increase in Commonwealth Rent Assistance. So, they are really important measures to support people. Everyone's getting the power bill relief and for those people that might be on a part pension when it comes to deeming rates, as you point out, they're likely to be getting more on any investments they're earning, but we are freezing the deeming rate at the lower level so that they can keep more on the money that they make on their investments if they get a pension. So, these are all other measures that we've taken across the board to support people on a fixed income, to support people that do rely on government payments, but also support people that are tax earners as well and taxpayers as well. And of course, one of the really important features of the new tax cuts was that people on $45,000 or under were not going to get a tax cut under the previous changes. These tax cuts have been calibrated to focus more on low and middle income earners so that they get that extra support.
SPENCE DENNY: Ray has called in from Seaford. G'day, Ray.
RAY, SEAFORD: Good, mate. How you go?
SPENCE DENNY: Good, thanks. What are you going to do with your extra money?
RAY: Extra money? Pay the electricity. Listen, this $300 that they've given us, I thought as soon as I heard that, I thought, well, the next thing that's going to happen is the price of electricity is going to go up. That's the usual pattern and sure enough, a week or so later, I received a letter from my electricity provider. I don't know whether I can mention them, but I'll leave that out of it.
SPENCE DENNY: That's fine. That's not relevant.
RAY: Yeah, they put up the tariff for my solar, it has gone up 33 per cent. It's dropped from six cents to four cents.
SPENCE DENNY: So, you're only in….
RAY: That's the equivalent of a 33 per cent pay rise in electricity.
SPENCE DENNY: So, you're only getting four cents per kilowatt now for your solar.
RAY: Correct.
SPENCE DENNY: Wow, yeah. Amanda Rishworth, is there the risk that retailers, when they see that consumers are going to get a rebate like this, that they can then take advantage of that situation?
AMANDA RISHWORTH: Well, they shouldn't, and that would be unacceptable. Of course, the ACCC monitors this very closely, as does the energy market operator. And of course, what we're seeing is, obviously, energy prices have been very high because we haven't seen the investment in supply. We're starting to see the investment in supply of energy come online, but that takes some time. But any price gouging or any sort of behaviour like that would be completely unacceptable and should be reported to the ACCC.
SPENCE DENNY: Amanda Rishworth, while we've got you, what's the future for Senator Fatima Payman? Are you comfortable with her suspension by your party?
AMANDA RISHWORTH: Look, of course, what Senator Payman has done by her words, her actions, her statements, it has been very clear that she doesn't want to abide by the rules of the Labor Party. The Labor Party has a lot of processes in place where issues are discussed and debated and we come to a common ground and there's rules then about that. And she's made it clear that she doesn't want to abide by those so, she's now suspended from the Labor Caucus. If the circumstances change, she's always, of course, welcome back. But at this point, she's made it very clear that she doesn't want to abide by those rules and I respect that decision.
SPENCE DENNY: So, for those who aren't aware, Senator Payman was yesterday suspended indefinitely from the Federal Labor Caucus over her intention to continue crossing the floor on issues around Palestinian statehood. This is a delicate balancing act, though, because you wouldn't want one of your senators leaving the party, would you?
AMANDA RISHWORTH: Of course, if someone gets elected as a Labor Party Senator, then we want them to be part of the party. But there are responsibilities that come with being a Labor Party member of Caucus and a Labor Party Senator. And so, you know, she's made her actions clear and therefore she's been suspended. I think it's the right call by the Prime Minister.
SPENCE DENNY: So, the processes are more important than people's personal beliefs.
AMANDA RISHWORTH: That's not the case at all. I think what we have the opportunity within the Labour Caucus because we're in a really privileged position. We can debate issues, put forward ideas, put forward amendments, put forward a whole lot of things that allow for us to come to a position that we can all support. Senator Payman has indicated through her actions and statements she doesn't want to be part of that and therefore she's been suspended from the party. I think it's the right course, but there are plenty of opportunities and privileges as a Labor Party Caucus member to have those debates and we do so in a robust way and come to a consensus.
SPENCE DENNY: And it's made clear to anybody who's a member of the Labor Party, if they do nominate as a Senator or as a local member, that that's the rules you have to abide by.
AMANDA RISHWORTH: Look, it's very clear, it is part of the respect for your colleagues as well as the party that backs you and the fact that, you know, we work as a collective in solidarity.
SPENCE DENNY: Amanda Rishworth, Minister for Social Services. Thank you.
AMANDA RISHWORTH: Thank you.