PRICE: Penny Wong is the Finance Minister, thanks for your time.
WONG: Good to be with you.
PRICE: 200 people, $1 million and another review, says Opposition treasury spokesman Joe Hockey.
WONG: Unfortunately for Joe, not everything can be distilled to a neat little grab. Were talking about the long term future of the economy. Were talking about long term reform of the tax system. And weve come out with some very clear priorities in the short term to achieve that. Including the lifting of the tax free threshold that you spoke about, that would build on what were already providing through the Clean Energy package, where we are lifting it to $18,200. What we want to do is simplify the system, get it to $21,000. Thats over a million Australians taken out of the tax system.
Weve got state tax reform, we saw the Queensland and New South Wales Treasurers say look lets go and harmonise payroll tax. Theyre going to lead a process to develop that tax reform plan. So were very pleased Mike Baird and Andrew Fraser have agreed to do that.
In terms of business tax, well have an interim report by next month by this working group which is going to identify options for the treatment of tax losses, something very important as the economy changes.
And on top of that weve got research and governance changes which the business community have been asking for. So theres a lot out of this. Ive got to say it was a forum I enjoyed attending. It was very constructive some of the better policy debate that Ive seen in Canberra in some time.
PRICE: I think only a Finance Minister would use the word enjoy sitting through a two day discussion about tax.
WONG: (laughs)
PRICE: Regardless, the $21,000 threshold the Treasurer Wayne Swan said when we can afford it. Have you got any clearer time frame than that?
WONG: No because it is when we can afford it. Weve got a fiscal strategy in place.
PRICE: Does that mean it might not happen?
WONG: No, I think its a matter of timing. Weve got a fiscal strategy in place, its about bringing the budget back to surplus but its also about ensuring we build those services up. So we have to make sure all policy decisions are delivered in that framework. So thats why weve responsibly left the timing open. Remembering that this is already a path were walking down.
Its a very Labor reform because its about rewarding work. Its about saying to people we will ensure you get more of every dollar you earn that encourages people into the workforce, thats a good thing for the economy but its also a good thing for families.
PRICE: How would you describe the mood of business at that two day summit?
WONG: I cant speak for everybody at that forum. I spoke to quite a number of business people. I think whilst people had different answers, at least people were asking some of the same questions. And I think people were relishing the opportunity to actually have the discussion. And have a long term discussion.
And as a Finance Minister where you do try and think about where the country is going to be and where the Budget is going to be in 10, 20, 30, 40 years time with the ageing of the population, I found it really heart warming that we had so many people from different stakeholder groups - business, unions, community actually thinking about what is going to happen as the population ages and how do we manage that. Thats a very constructive conversation and dialogue.
PRICE: Would you describe the mood about our economy and the world economy in general as pessimistic?
WONG: I think that really depends where you are in the economy doesnt it?
PRICE: I guess if you are running BHP youre not as pessimistic as if you were running a shoe shop?
WONG: Exactly, exactly, and I suspect business people at this event were like business people across the country. Its a very different experience depending on where you are in the economy and were going through another time of change. Its not the only time of change Australia has gone through. Our prosperity has always been secured because weve handled change and weve got to handle this one as well. And its a big change. And part of what were doing in terms of these tax reforms is trying to look at ways in which the tax system can support these changes.
Weve also got a jobs forum today which is about not just the jobs of today, but how do we work towards the jobs of tomorrow? How do we build the jobs of tomorrow?
PRICE: Weve seen the dollar go against the US from near $1.10 back down to 96c, its hovering around there at the moment. Is that improving our trade outlook, the fact that its fallen back to that point? I mean obviously, exporters, its going to be easier for them.
WONG: Thats right. Part of what weve been seeing for the last year in Australia is we had a very high dollar for a range of reasons, one of them is that were getting extraordinarily high prices, weve been getting very high prices for our commodities, particularly iron ore and coal, and weve had a high dollar. And what the high dollar has done is made life pretty difficult for people whose businesses are exporting, whose businesses are import competing, and whove had a business model which has assumed a much lower dollar.
PRICE: Now, on Sky News last night, I know you would have been busy with the summit Graham Richardson, former Minister, has actually gone on there last night and named two of your colleagues as actively plotting against Julia Gillard, Alan Griffin and Mark Bishop, have they rung you?
WONG: (laughs) I didnt see Richo, and I think people like to make all sorts of commentary. But its very clear what the position is and the position is the Prime Minister has the overwhelming support of her Cabinet and her Caucus and shell lead us to the next election.
PRICE: One is a Victorian, one is a Western Australian, youre from South Australia, so Alan Griffin and Mark Bishop, theyve not called you and asked where you would line up if there was any change?
WONG: Ive not had such a call, and if I did, Id make very clear what my views are.
PRICE: You support the Prime Minister.
WONG: Ive made that very clear.
PRICE: Alright, thanks for your time as usual.
WONG: Good to speak with you.
ENDS