: Let's bring in the Prime Minister, Anthony Albanese, to get his reaction to these pretty significant inflation figures. Prime Minister, welcome to Afternoon Briefing for the first time in 2025.
ANTHONY ALBANESE, PRIME MINISTER: Good afternoon, PK.
KARVELAS: Do people with mortgages deserve an interest rate cut in February?
PRIME MINISTER: Well, certainly people have been doing it tough due to global inflation, but these are welcome figures today. Headline inflation down to 2.4 per cent from 2.8 per cent and trimmed mean inflation down to 3.2 per cent from 3.6 per cent. But the December quarter is 0.5 per cent for trimmed mean inflation. That is a figure that far exceeds the most optimistic of forecasts which were made. And it is welcome news. It is indicative of the hard work that the Government has done when it comes to responsible economic management, but also the hard work that Australians have done as well. And so I certainly think that the Government has done what we can and these figures are very welcome. We understand that there's more to do. But that stands in stark contrast to the rather extraordinary claims that - we'll wait and see if Angus Taylor on your show makes the same claims that inflation hasn't come down. Well, it had a six in front of it when we're elected. It now is below two and a half when it comes to headline inflation. And to argue that that is not positive is rather extraordinary. It would appear that unlike the Government's responsible economic management, the Opposition's irresponsible rhetoric wants to see Australians worse off because they think that will make them better off politically.
KARVELAS: Prime Minister, at the Press Club you said your first term legacy was keeping us out of recession. But people are experiencing a household recession. Will they give you credit at a household level when they're feeling pretty stung?
PRIME MINISTER: Look, we acknowledge that people are doing it tough, but that's why we've acted, Patricia. That's why we have produced two budget surpluses. That's why all of our cost of living measures have been designed not just to help households under financial pressure, but to do it in a way that has not put upward pressure on inflation. So, whether it was the tax cuts for low and middle income earners, the Energy Bill Relief, Cheaper Child Care that saved on average over $2,500 for Australian families with new figures released this week, Cheaper Medicines, Free TAFE, all of these measures have been designed to provide that assistance to households. All of those measures, opposed by the Coalition, because they don't want people to have that relief. They think there's a political advantage in people being worse off. Well, that's not our approach. Our approach is to provide assistance while providing responsible economic management. And in today's figures, we are seeing what progress has been made.
KARVELAS: Will today's inflation results, Prime Minister, influence the timing of the election?
PRIME MINISTER: Well, we will have an election sometime -
KARVELAS: Before May - yes, yes, yes, but just specifically -
PRIME MINISTER: On or before May 17th - well, if you ask the same question, you should get the same answer.
KARVELAS: But I'm wondering, as you look at these numbers today and you're clearly very happy about them, Prime Minister -
PRIME MINISTER: I am always pleased to see Australians getting relief from inflation. Inflation punishes people who have less income more than people who are wealthy. I am pleased because I want Australians to have their living standards grow. And what we're seeing here is that inflation is going down, wages are going up, while employment is being maintained with low unemployment. I think that trifecta of lower inflation, higher wages and low unemployment is indeed a good outcome for our country.
KARVELAS: What about the Budget, Prime Minister? The Treasurer said he is working on the Budget, but ultimately it's up to you. Are we going to see a March Budget?
PRIME MINISTER: Well, we're working on a Budget. We've had ERC meetings every week. We produced MYEFO in December and we're working towards a Budget on March 25.
KARVELAS: Okay, so it will happen?
PRIME MINISTER: Well, we're working towards a Budget on March 25th, Patricia. The idea that I'm about to announce, as much as people try different ways to ask the question on the election date, we will make -
KARVELAS: I'm wondering, let me just put it this way, Prime Minister. Have you got a bounce in your step now? Are you feeling more confident about going into an election?
PRIME MINISTER: Look, I've always thought, Patricia, that we are a Government that have governed in difficult economic times. Global inflation's had an impact, but we've always, in these turbulent seas, had our eye on the horizon. How do we provide cost of living relief? We supported all of those measures. The Coalition opposed all of those measures. We have a plan for long term change in the economy, as well, with the transition that's occurring with a Future Made in Australia. We have policies out there, on social policy for gender equity. We have policies for the environment. The Opposition have come up with one cost of living measure which is free lunches for - not just lunches. Golf days, karaoke nights, weekends away. Who knows what's included? They won't tell you how much it costs. They will know - they will know that every taxpayer will pay for them.
KARVELAS: Are you looking at extending the electricity bill relief?
PRIME MINISTER: Look, we'll make policy announcements when we make them.
KARVELAS: Do you think there's a case to keep that going?
PRIME MINISTER: We'll make policy announcements when we make them.
KARVELAS: Okay. Are you worried, then, that extending it may give the RBA an excuse not to cut interest rates before the election?
PRIME MINISTER: Well, Patricia, the RBA's meeting next month, the Budget is due on March 25th. So, we will continue to do what we can on cost of living measures. We understand that we want an economy that works for people, not the other way around. We want to provide assistance for people who are under financial pressure and we understand, as well, that whilst today's figures are welcome and are more positive than any of the expectations that were there from some of the commentariat, we know there's more work to do. But things are heading in the right direction. When you have an inflation figure that we inherited which had a six in front, which is now below two and a half - at 2.4 per cent - where employment has been maintained and unemployment is at just 4.0 per cent, having risen slightly from 3.9 per cent, and when real wages have increased over the last four quarters. We think those economic indications are all important and are all heading in the right direction. We know there's more work to do. That's why we want a second term, to build on the foundations.
KARVELAS: When you talk about more work to do, what does that work look like? Because clearly when you have inflation figures like this, yes, it's good in the fight for inflation, but it also shows, Prime Minister, and you concede this, a very weak economy. Does that mean you think that there needs to be stimulus in the economy going forward?
PRIME MINISTER: We want to make sure that people get that cost of living support. But we also want to, of course, maintain employment. And getting inflation down without having people cast aside, as some of the commentators would have had us do, is like landing a 747 on a helicopter pad. It has been a difficult thing to navigate, but we have been determined to make sure that no one is left behind and also that no one is held back. So, how do we create opportunities for that future economic growth? One of the ways, of course, is investing in new industries in the transition, for example, the green aluminium plan that we announced just last week. The other is investing in schools. The fact that we have had now six of the eight states and territories sign up to what David Gonski recommended 14 years ago. So, the School Resourcing Standard will be met over the next decade, is an important investment by the Commonwealth and state and territory governments. We also have Free TAFE. So, how do we train people for those jobs of the future?
KARVELAS: In the wake of these figures, do you have to be careful about kind of, a victory lap in relation to these figures, given Australians are still doing it tough?
PRIME MINISTER: I mean, we're saying very clearly there's more work to do. But my Government has a plan to get there. The Opposition have a plan to cheer against Australia. They want to talk Australia down. They say that there's been no movement at all in inflation and it just defies logic and the facts. And the only thing that they have put forward - we know they opposed every single one of the measures that were put forward, including saying that we should have an election, they was so hostile to our tax cuts that have provided that support for low and middle income earners - is this free lunch idea, which is sloppy policy that they won't tell Australians how much it will cost.
KARVELAS: Can we turn to the next two sitting weeks, Prime Minister, what do you want to achieve in the Parliament for the next two weeks?
PRIME MINISTER: I want to achieve the passage of legislation such as that supporting new industries in critical minerals and rare earths through our Production Tax Credits. We have legislation to enshrine Free TAFE on an ongoing basis and we'll have other legislation before the Parliament, as well. We'll be introducing some new legislation for this session of Parliament going forward. But we -
KARVELAS: In relation to what? Could you tell me?
PRIME MINISTER: Well, I don't want to spoil the interview of next week, Patricia.
KARVELAS: I'd love to speak to you weekly. Absolutely. But could you just give me a taste of what you want to put on the agenda?
PRIME MINISTER: We will have new legislation next week going forward and we think -
KARVELAS: On what theme?
PRIME MINISTER: You'll see it next week, Patricia.
KARVELAS: Let me ask this then. Have you done a deal with the Coalition -
PRIME MINISTER: We have a process where our legislation goes through the Caucus and goes through proper processes and is then introduced into the Parliament. But Parliament's coming back for this year, as I said I would do. In spite of the relentless questioning over election dates that started over a year ago.
KARVELAS: Well, yes, sometimes that's very boring for people. Let's not bore people with election timing. I agree. Sometimes it's very circular. Have you done a deal with the Coalition on electoral reform, and are you aiming to pass it through this coming sitting fortnight?
PRIME MINISTER: Look, no, at this point in time. But we'll wait and see whether there is support for it or not. There needs to be majority support in the Parliament. We think there's a need for greater transparency. We believe in electoral reform. We'll continue to advocate for it, but we'll wait and see what happens in the next fortnight over that, and a range of other legislation. We, of course, carried 45 pieces of legislation in the last sitting week last year. It was a very successful week for getting the Government's agenda adopted. We didn't get everything that we wanted through and electoral reform is one of those outstanding issues. But we'll wait and see.
KARVELAS: But you don't have a deal, okay. Just going into this election season, couple of really pointy political questions. Just indulge me. Are you the underdog going into this election?
PRIME MINISTER: Well, what I'm not is a commentator.
KARVELAS: No. But how do you feel going into it in terms of your chances?
PRIME MINISTER: Patricia, I think that we have an agenda for a second term that we're outlining already. We have outlined, in three major speeches that I've given, our education agenda, taking 20 per cent off student debt, Free TAFE going forward as well, our agenda on child care of a three day guarantee and child care infrastructure being built in our regions and in our outer suburbs as well. And of course, last week, our support for apprentices in construction and the reforms that we're advancing in public school funding as well. We'll have more to say about a full range of measures, including strengthening Medicare and strengthening the economy and providing support for people. We think that we want to build on the foundations that we've laid in our first term. But we know that the offer that is made for a second term needs to be a strong one and we'll put that forward. But Labor governments have governed for around about 30 per cent of the time since Federation. We know that it's tough to win elections.
KARVELAS: Let me ask this question about political trends we're seeing. Polling this week shows that your Party is having trouble connecting with young men. Have you noticed this? I know that there is a gender divide emerging in Australia. Is it something that you're worried about?
PRIME MINISTER: Oh, look, I want to govern for all Australians, irrespective of where they live or their gender. I seek to do that and I engage constructively.
KARVELAS: But do you think there's something going on with men? Prime Minister, I just want you to be honest with me. You are a man, I'm not. But is there something going on with men?
PRIME MINISTER: Well, that's a very broad question -
KARVELAS: No there is, we're seeing a lurch to the right from some men. Is it something you've observed? And do progressive politicians like yourself need to think about how to talk and communicate with men?
PRIME MINISTER: Well, my experience, Patricia - and I'm someone who doesn't just exist in controlled environments of particular studios. I'm someone who gets out and about and talks throughout the media. But I also go into shopping centres. I was, over January, in places like the main pub in Kununurra, talking to all and sundry. I do that across our regions, whether it be Kununurra or Mount Isa or Rocky or Cairns, or indeed in our cities such as Perth, Canberra and Sydney, I was in, on Sunday. I talk with people. What I have is positive engagement with people. We live in a society that is fast changing. We know that that is the case and we know that due to that uncertainty, we need a Government that provides support for people, that is constructive in our agenda and that is what we are providing. Today's announcement on the inflation figures, you know what? That has an impact on men and women. People in the country and the city.
KARVELAS: Peter Dutton has warned that young men have had enough of being painted as ogres and being passed over for promotion because of a rise of affirmative action. Do you think that's how men feel?
PRIME MINISTER: Look, I'm not a commentator, Patricia, I'll leave -
KARVELAS: No, but you have to read the room, right? You have to read how men are feeling.
PRIME MINISTER: I'm not a sociologist. I'll leave that to them. What I believe is that we need to provide opportunities for people, whether they be young men or young women. That's what our Future Made in Australia is about. That's why we have, whether it be Cheaper Child Care and the child care reforms for our younger boys and girls, right through to schools, right through to the University Accord. That's why taking 20 per cent off student debt will help young men and young women to engage. There is a feeling about inequity when it comes to the opportunity that that generation have compared with my generation. So, I understand that. And we want to engage and provide support for young men and young women. That's why as well - Free TAFE, I've met young men and young women doing apprenticeships, whether it be in construction or IT or the care economy as well, in aged care or child care. Right across the board, that is making a substantial difference and that has been positively received. And that's why we want to entrench Free TAFE through our legislation that's before the Parliament at the moment. That will be debated in the House of Representatives next week and hopefully in the Senate the week after.
KARVELAS: Prime Minister, just a final question on a breaking story that I must ask you about. Very significant. Australian officials believe that Australian soldier Oscar Jenkins, who travelled, as you know, to fight in the defence of Ukraine, is alive and in Russian captivity rather than dead, which had been feared. What can you tell us?
PRIME MINISTER: I can say that we have received that information through the Department of Foreign Affairs and Trade. But we are seeking confirmation. I'm reticent to confirm that that is the case, but certainly that has been the statement made Russian authorities through to our Department of Foreign Affairs and Trade officials, as well. So, if that is the case, it certainly would be welcome. It is something that we have demanded information on and we are demanding more information so that we can be certain that what has been suggested is in fact the case.
KARVELAS: Is the Ambassador, the Russian Ambassador, talking to the Australian Government about this? What can you tell us?
PRIME MINISTER: I am reluctant to go into details for obvious reasons. One of the things that we have been keen on doing is making sure that Mr. Jenkins' family get information before it is spoken about publicly, as well. But at this stage, we are seeking further confirmation and details, we'll continue to do so. We always make representations on behalf of Australians. And can I say this, that the Foreign Affairs and Trade officials do a remarkable job providing that representation.
KARVELAS: Prime Minister, many thanks for joining us. Look forward to speaking to you lots throughout the year.
PRIME MINISTER: Thanks very much, Patricia, and congrats on the new gig. And you get to sleep in a bit more now.
KARVELAS: I know, I am rather enjoying it. Prime Minister, thank you.
