Minister for Indigenous Australians
Subjects: Federal Budget; Tax Cuts.
ADAM STEER, HOST: Northern Territory Labor Senator and Minister for Indigenous Australians Malarndirri McCarthy. Senator, welcome back to the program.
MALARNDIRRI McCARTHY, MINISTER FOR INDIGENOUS AUSTRALIANS: Good morning, Adam. Good morning to your listeners.
ADAM STEER: Let's start with the roads, $200 million for the Stuart Highway, is that enough?
MALARNDIRRI McCARTHY: Oh look, we would certainly look at wanting more roads right across the Northern Territory. I look at all the roads that I travel out bush, but this is significant for the route between Katherine and Darwin, Adam. We know that there is a large traffic volume that travels between Katherine and Darwin and particularly getting supplies. So, this is critical. It's on top of the roads infrastructure that we've contributed to with Tiger Brennan Drive in Darwin itself but also the other main arteries of the bush roads in the Northern Territory.
ADAM STEER: The Northern Territory manager of Road Trains Australia, Nick Vereker says the funding for roads is always welcome. There are bigger safety concerns for Barkly and Victoria Highways. This is what he had to say.
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ADAM STEER: How much consulting did the federal government do with those road users before deciding where that money would be spent?
MALARNDIRRI McCARTHY: Well, Catherine King is the Minister for Infrastructure and responsible for the funding that's provided Adam and has visited the Northern Territory on numerous occasions. She is in touch with stakeholders right across the Northern Territory and I'm confident that with both her and with Marion Scrymgour as the Member for Lingiari, pushing for this increase plus more as we continue on down the track. But also, previous infrastructure bids that we've had. This is important for the Northern Territory.
ADAM STEER: The Chief Minister Lia Finocchiaro had this to say when I put the $200 million upgrade to her yesterday:
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LIA FINOCCHIARO: I don't even think that would get us 100 kilometres of road. It's really minimal funding. It's band aid money, it's maintenance money. It doesn't change the dial for the Territory, it doesn't deliver new economic opportunities for us. It is status quo and I'm sick and tired of being ignored by federal governments -
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ADAM STEER: What do you say to the Chief Minister? Sick and tired of being ignored by federal governments. Is she right?
MALARNDIRRI McCARTHY: Well, the Chief Minister has been in the role for six months, Adam, and we've already spoken with her about the investments that we provided into the Northern Territory. We do provide 88.3 per cent of the Northern Territory government's funding. So, I'd be very careful in terms of the kind of criticism that's coming towards the Federal Government on this. They still have yet to provide their first budget. We do inject significant funding into the Northern Territory as a whole.
ADAM STEER: Shadow Treasurer spokesperson Angus Taylor slammed the government's cuts as an election bribe by a weak Prime Minister. Is that what this is, an election bribe? The sweeteners that we've got?
MALARNDIRRI McCARTHY: Not at all, Adam. This is responsible economic management. Inflation is down, unemployment is low, wages are up, interest rates have started to come down and growth has rebounded solidly. We are about making sure no Australian is left behind. We have ensured that the employment, in particular, the wages of carers in the care sector for women, in terms of this Budget, they are very much considered. So, this is responsible economic management.
ADAM STEER: You're on ABC Radio Darwin, Adams Steer with you. NT Labor Senator Malarndirri McCarthy is your guest this morning. What else is in the Budget for the Northern Territory, Senator?
MALARNDIRRI McCARTHY: Well, every taxpayer, Adam, will receive a new tax cut of up to $268 in 2026 - 27. And if you combine that with Labor's first round of tax cuts, Northern Territory taxpayers will receive an average benefit of $2,713 in 2027 - 28. And that's significant. We've got 88,000 households in the Northern Territory, Adam, who'll get $150 in help with their energy bills along with 11,000 eligible small businesses.
ADAM STEER: So, 88,000. So, it's not everybody, it's not all households get an energy bill relief?
MALARNDIRRI McCARTHY: This is all households in terms of the Northern Territory. So, our figures show it's 88,000 in the Northern Territory who'll get an additional $150 in help. We also have the figures of 11,000 eligible small businesses. The government's energy bill relief payments to the NT in 2025 - 26 are estimated to be around $14.9 million, Adam.
ADAM STEER: OK, what about in your own portfolio in that for Indigenous Australians? Are you happy with what the Treasurer has delivered here?
MALARNDIRRI McCARTHY: Yes, certainly. I mean, it was important, as people may have seen, we did recommit to the remote area funding with the Northern Territory Government in terms of making sure around policing, around security, around child safety, all of these things in terms of the remote and regional areas of the Northern Territory, in terms of food security. I'm very pleased with that. We're rolling out $50 million in terms of food security across regional and remote areas of Australia and a large number of that is in the Northern Territory. Certainly, pleased with rolling out of remote laundries. I'm very concerned about rheumatic heart disease that impacts so many First Nations people. And we know that something as simple as having more laundries in our communities and accessible has assisted and will assist in reducing and bringing those numbers down.
ADAM STEER: Let's get back to these tax cuts because I found them quite surprising. So, you're going to be reducing the lowest income tax threshold. So, that's between the 18 and $45,000 per year from 16 per cent to 14 per cent delivered over two years. So, when that's fully in place by mid-2027, that's around 10 bucks a week for people, for most tax earners, that's going to cost the Budget $17 billion. That's a lot of money for what is a very, very modest tax cut for Australians. Why do that?
MALARNDIRRI McCARTHY: It is a modest tax cut, but it's also about keeping the responsibility in the economic management of the Budget. We've recognised that people are doing it tough. We've tried to do this across all sectors, whether it's through the Medicare rebates, whether it's through Urgent Care Clinics, reducing the cost of pharmaceuticals in terms of people going to the pharmacy and having cheaper medicines, in terms of childcare, and now we're doing it through tax cuts. And if you combine the tax cuts we made last year, Adam, plus with these new ones coming in front of us, for the people of the Northern Territory, it will be a total of $2,713 in tax cuts for them. And that is significant when you combine it all together. We have to be responsible with the way we're handling the Budget. We do believe that this was an important direction to take.
ADAM STEER: What about for welfare recipients? We know the cost of everything has gone up, particularly post the outbreak. JobSeeker and Rent Assistance will not be receiving a top up.
MALARNDIRRI McCARTHY: This is where we've tried to look across the board, as I said, with the other areas that we've touched on with health, for example, in terms of the cheaper medicines, in terms of the food security, in terms of cheaper food, in terms of the schooling, in getting kids to school. So, we've tried to go across the board to reduce the pain that is out there for families in these areas, Adam. Have we got it right? Well, only time will tell, but we do believe that this will impact, especially those who desperately need it.
ADAM STEER: Peter Dutton says he's going to slash 36,000 Public Service jobs, pointing at that number of jobs or more that has grown under Labor. Meanwhile, the Treasurer says he is going to slash $700 million from consultants, which are the same people that will be employed when their job is lost. Can you explain that?
MALARNDIRRI McCARTHY: Well, Peter Dutton will be a risk to the Australian economy, there's no doubt about it, to slash 36,000 jobs and yet at the same time, look at a $600 billion cost towards building nuclear reactors. This is his priority. I would say to your listeners that that is a very big risk for our country, to have people, 36,000 people, lose their jobs, to have more cuts across every sector. Our Budget is about delivering for all Australians and leaving no Australian behind, especially the vulnerable. But that is not what Peter Dutton will be doing. He will be slicing and cutting. He cuts, you will pay.
ADAM STEER: Senator, thank you for your time this morning. Appreciate it.
MALARNDIRRI McCARTHY: Thank you.
