Prime Minister, thanks for joining us and for being the first interviewee in this position with Sydney extending out behind you. I think you can even see Grayndler over there.
ANTHONY ALBANESE, PRIME MINISTER: Indeed, it's great to be christening this wonderful new studio here in Parramatta.
O'BRIEN: Okay, so terrific news this afternoon for people paying off their mortgages. What does this indicate again about the battle against inflation?
PRIME MINISTER: Well, it's welcome news. It's the RBA saying, effectively, that this is a worthy interest rate cut, the first since 2020. So, we now have inflation falling, it has two in front of it, 2.4. It had a six in front of it when we were elected. Real wages are increasing. Employment is still strong. We've created 1.1 million jobs, and now we have interest rates falling for the first time in five years. So, it will be welcome news for people. We know that people have been doing it tough, and this will not ease all of that pressure, but it will be welcomed by those with a mortgage.
O'BRIEN: There is a lot of caution about what lies ahead. Still, the RBA Governor this afternoon saying there's way too much confidence in the markets about future cuts. Are people going to really get a sense from this that things are actually turning around, considering the hit to the standard of living there's been over the last couple of years?
PRIME MINISTER: Well, they will know that wages increasing, inflation falling, interest rates being lowered, as well as employment strong. That's a pretty good quadrella going forward. It's not a reason for complacency. We know there's more work to be done, and the government will continue to focus on providing cost of living support, whilst putting that downward pressure on inflation. Because we're not complacent. We know that these are difficult global times, and there is some uncertainty out there in the global economy. People have gone through COVID and then they got hit by global inflation. But Australia, I think, is well positioned to say that things are on the up, and that's a good thing.
O'BRIEN: I just want to talk to you about the policies that you enacted during the last couple years through this inflation challenge. The economist Chris Richardson has said rates would have come down sooner had you reined in spending, this is going to be a point of contention at the election. Why did you opt for that when the alternative could have seen rates falling sooner?
PRIME MINISTER: Well, look at the facts. The fact is, we inherited a $78 billion deficit under the Liberals, and we turned that into a $22 billion surplus, and then followed it up with another surplus. The fact is that we put the revenue upgrades, overwhelmingly, we put into reducing debt. Debt has been reduced by some $200 billion has been saved. We have had responsible economic management and the cost of living relief that we've put in place, whether it be the tax cuts for every taxpayer, the energy bill, relief, cheaper medicines, cheaper childcare, free TAFE, they've all been designed in a way that has assisted to put that downward pressure on inflation whilst putting more money in people's pockets, which is what they needed. We make no apologies for wanting people to earn more and to keep more of what they earn, and that is what we've managed to achieve over our first term in government. We know that there's still financial pressure out there. There's more to do, but we've built the foundations for future growth, and if you look around the world, we have had a lower average unemployment rate in Australia, in spite of global financial and economic pressures, than any government in Australia's history in terms of the last 50 years. That's a pretty good record, and Labor will always prioritise jobs whilst looking after people's cost of living. And all of those measures have been opposed by Peter Dutton and the Opposition.
O'BRIEN: So, an election is imminent. Does this afternoon's decision give you more confidence about the likelihood of you winning?
PRIME MINISTER: People will make their own judgment, but what they'll look at is a government that actually has responsible economic management, that's dealing with strengthening Medicare, that's looking after people's education, from early childhood right through to free TAFE and our Universities Accord, the deals that we've done to lift up students as well, the cutting of student debt that will make a difference. Our dealing with climate change, taking up the opportunities which are there, and resetting our relationships with the world and an Opposition that has just three policies - a $600 billion nuclear energy plan, a plan of more cuts, but they won't tell you what they are until after the election and free lunch for bosses. I think that the Opposition haven't done their work. They've just opposed everything, including opposing every single one of our cost of living measures. You speak about the election a year ago, Peter Dutton wanted us to call an election to stop our tax cuts going through that have provided that important relief for people.
O'BRIEN: And talking of an election, you say you're still planning for a Budget next month. Is there an ironclad guarantee from you that a Budget will actually be delivered?
PRIME MINISTER: Well, I think that three years is too short, but I support four-year fixed terms. Unfortunately, the Liberal Party's opposed that at two separate referendums, and it hasn't been successful. So, we will make a decision. But there certainly, obviously, there will be a Budget this year. We'll make a decision after I consult with colleagues.
O'BRIEN: Okay, so housing was a key issue and passionate issue for you in the last election. Your ministerial colleagues have described the Labor commitments on this as some of the boldest and most ambitious in a generation from a government. But industry groups concerned about the target slipping, and one commentator has described the 1.2 million homes target over five years as a lost cause. What real impact have you made in that space in the last three years, and does that 1.2 million target still stand?
PRIME MINISTER: And we have a multi-pronged $32 billion Homes for Australia plan. Whether it is increased public and social housing through our Housing Australia Future Fund, whether it be Build to Rent, the incentives that were put in place in my own electorate, there was an announcement just this week of 1200 new dwellings in one site, another 500 in another. That will make a difference towards meeting those targets. In addition to that, our Help to Buy scheme, there has been some delays because of the Coalition and The Greens teaming up in the Senate to delay that legislation. But the investments there, we're working with industry groups, be it the Master Builders or The Property Council of Australia. We're also working with state governments and local government. And a great example is the site that was announced in Camperdown between the state government, supported by the Inner West Council, but backed by our government as well. For the dive site for the WestConnex project to be turned into housing that's affordable for essential workers, really close to where the hospitals are there in Camperdown and near services. So, these are the sort of measures that we want to see. I know Chris Minns Government, as well as other state governments are doing a lot of work to make sure that those planning approvals get done.
O'BRIEN: Donald Trump seems to be ubiquitous. His name even cropped up today in the Reserve Bank Governor's media conference, talking about dangerous uncertainty and unpredictability in the global economy over the coming years. You've played it very diplomatically with him up until now. Will there come a point where you have to more explicitly call him out if you're going to be Prime Minister for the next four years?
PRIME MINISTER: We'll continue to act diplomatically with all of our relations. That's how we've improved relations in the region. Remember where we were at when we came to office? We were pariahs in the Pacific Island Forum. We'd undermined our relationships with ASEAN countries to our north. We had $20 billion of trade impediments with our largest trading partner in China, and we had damaged the relationship with nations such as France. What we've done is deal diplomatically, honestly, up-front, building relations, and that's been really positive. And I must say, the first two discussions I've had with President Trump have been very positive, and the Defence Minister and the Foreign Minister have both met with their counterparts. We'll continue and engage constructively. The relationship between Australia and the United States is a relationship not just between leaders, but between our nations, based upon our shared values as great democracies.
O'BRIEN: You've been a passionate supporter of Ukraine through your term. Are you comfortable with how the US is going about seeking to find a solution there by talking directly to the Russians?
PRIME MINISTER: Well, my job is to stick up for Australia's national interests and for our values. We support Ukraine in its struggle, because we regard, even though this is a land war in Europe, this is about the international rule of law. So, I talked with President Zelensky just a couple of weeks ago. We'll continue to provide support for Ukraine in its struggle.
O'BRIEN: Now you're here at the ABC offices and studio to open a new facility here. The ABC has its supporters and its detractors. Why have you decided to be here this evening?
PRIME MINISTER: A public broadcaster is so important. It plays such an important role in our democracy. It's a trusted news source, and the ABC is worthy of our support and throughout its various platforms, whether it be through TV or radio or online, the ABC is an important part of Australian democracy, and I am very supportive of it.
O'BRIEN: Okay Prime Minister, thanks for joining us.
PRIME MINISTER: Thanks very much.
