KARL STEFANOVIC, HOST: It was a big night in Canberra, the Government unveiling a surplus for the first time in 15 years. Prime Minister Anthony Albanese joins us now. PM, good morning to you.
ANTHONY ALBANESE, PRIME MINISTER: Good morning. Good to be with you.
STEFANOVIC: How do you know that you haven't just fanned the inflation bushfire?
PRIME MINISTER: Because this is a responsible Budget, Karl. We have a projected surplus, the first in 15 years. What we have done is to take pressure off families without putting pressure on inflation. That is why we banked 87 per cent of the revenue gains over the last two budgets. That is why we found $40 billion of savings in those two budgets as well.
STEFANOVIC: Okay. Kevin Rudd spend $10 billion initially fanning us out of the GFC. This is double.
PRIME MINISTER: Karl, what we have done here is to provide targeted support. But we have done it in a way that is responsible. Take, for example, energy price relief. What we haven't done is put out cash payments which would have added to inflationary pressure. What we have done is put in energy price caps on gas and coal. And, secondly, provide $3 billion together with states and territories to reduce people's power bills. The Treasurer found that it will actually take three-quarters of a percentage point off inflation.
STEFANOVIC: I just want to talk, if I maybe so bold on behalf of everyday Aussies, people are really struggling. Most of us just want to know when their bills will come down and mortgages stop going up. What guarantee is there in this Budget that any of those things will happen?
PRIME MINISTER: That is why we provided energy price relief. That is why cheaper child care begins on July 1. That's why we are reducing the cost of medicines. That's why we have tripled the incentive for bulk billing so that when families go to the doctors with their kids and normally if there is a large family, if one kid gets kick others gets sick others gets sick as well, taking that pressure off. A tripling of incentive for bulk billing. Along with the increased number of Urgent Care Clinics. This is a responsible Budget. One that helps to lay the foundations for the strong economy that we promised for a better future whilst looking after people. Because we understand that people are under financial pressure. That's why we have provided this support in the Budget
STEFANOVIC: So, the Budget doesn't put any pressure on inflation?
PRIME MINISTER: Well, Karl, if it was the case that I was standing before you now talking about whether our deficit was too high, there might be an argument. The truth is that our projected surplus is the first in 15 years. And we have gone through, hour after hour, day after day, week after week, since the October Budget putting together a responsible Budget that provides a better future, that provides those measures which take pressure off people who need it, whilst not putting pressure on inflation.
STEFANOVIC: I get what you are saying. But if the Reserve Bank is looking on, they probably want to know the answer to that question. Does the Budget put any pressure on inflation?
PRIME MINISTER: Well, the Reserve Bank do look at these measures. That's why we needed fiscal policy to work, that is the budgetary policy mechanisms to work in concert with monetary policy. That is what we have done. That is why we have produced such a responsible Budget. That's why our measures are modest. But they're significant at the same time, to provide that support where people need it. That's why, as well, so many of the measures in this Budget, like cheaper child care, are aimed at boosting the economy, boosting productivity. Cheaper child care will boost productivity, will boost workforce participation by women, will grow the economy as well. It's an investment in our future. We have been put together what is a positive position going forward.
STEFANOVIC: I just want to ask one more time, does the Budget put any pressure on inflation?
PRIME MINISTER: Well, I've said quite clearly, when you look at energy price relief, it takes three-quarters of a percentage, according to Treasury, together with the price caps that we put in place at the end of last year, putting downward pressure on inflation. And that is our objective. That is why we are aiming to boost productivity. That is why measures like child care, dealing with supply chain constraints. One thing that the Reserve Bank said in the decisions that they have handed down, is that Australia was suffering from supply chain constraints due to the decade of inaction that was there from the former Government. Our 300,000 fee-free TAFE places supports family and reduces costs, and at the same time dealing with the supply chain pressures. It is an investment in people as well as an investment in our economy.
STEFANOVIC: Therefore, given what you have said about the Budget and inflation, you must be able to guarantee that there will be no more interest rate rises?
PRIME MINISTER: Well, the RBA as you know, Karl, is independent and no-one can speak on behalf of the Reserve Bank. What we can do, as responsible economic managers, is hand down a Budget that's responsible. We did that last night.
STEFANOVIC: So, you don't know. You don't know what's going to happen?
PRIME MINISTER: No. I don't speak on behalf of independent bodies. And the Reserve Bank is an independent body that guards its independence fiercely, as you well know. We can put in place mechanisms that assist it.
STEFANOVIC: Economists are saying that tough decisions were put off for a couple of years and are saying it is more a re-election Budget. How does that sit with you?
PRIME MINISTER: This is a Budget to build those strong foundations. If you look at what happened a year ago, Karl, it's only a year since the Morrison Government handed down its last Budget. It had a massive cash slash with not a single dollar of savings. It had a whole range of measures in there that dropped off a cliff, that stopped being funded. We had to provide over $10 billion of funding for things like community service workers, things like the e-Safety Commissioner and things like biodiversity that simply weren't funded into the future. We had to find those measures because of the neglect that we inherited. We have done that. We have done that whilst always producing a budget that projects a surplus of $4.2 billion.
STEFANOVIC: One final question for you. Do you rule out changes to tax to the bracket creep? Will you increase taxes?
PRIME MINISTER: We handed down a Budget last night, Karl. And that Budget had all of the measures that we were focused on, there for all to see in black and white.
STEFANOVIC: That is not a no, though.
PRIME MINISTER: Well, Karl, we just produced a Budget last night. All of the measures that we have considered are there for all to see last night in the Budget. It is a Budget that I am very proud of. It is a Budget in the finest traditions of making sure that people aren't left behind. Because Labor will always the Party of the disadvantage, but we are also the Party of aspiration. We are also the party of aspiration. We are a Party that wants a strong economy. We are the Party that wants reforms. And that is what last night’s Budget will do.
STEFANOVIC: PM, it sounds like a re-election pitch. We will let you go to it, lots of media on today. Appreciate your time.
PRIME MINISTER: We just got here. We haven't been in office for a year yet, Karl. An election is two years away.
STEFANOVIC: I know.
PRIME MINISTER: We will have a lot of discussions between now and then.
STEFANOVIC: Look forward to it. Thanks, PM.