Transcript | ABC News Breakfast | 20 June 2025

Friday 20 June 2025 

Interview on ABC News Breakfast 

Topics: Iran-Israel conflict, Victorian State Liberal Party, social media ban, tax reform 

EO&E………………………………………………………………………………………….. 

JAMES GLENDAY: Well it is now time to get more on federal politics and the Shadow Finance Minister James Paterson joins us now. James, welcome back to News Breakfast.

JAMES PATERSON: Good morning. 

JAMES GLENDAY: I just want to start in the Middle East, which is our top story this morning. The White House says it's allowing two weeks for diplomacy with Iran. Do you think that there is still time enough to do a diplomatic deal with Iran over its nuclear programme? 

JAMES PATERSON: I certainly hope so. Australia's interests in this issue are very clear. We should want Iran's nuclear enrichment programme to come to an end and the best way for it to come to an end would be via a diplomatic resolution where the Iranian regime agreed to stop enriching nuclear material beyond what is necessary for civilian needs and dismantled its last intact enrichment plant at Fordow which is believed to be buried under that mountain there. I hope that can be successful but I think time will tell and I think people will be reasonably sceptical of the Iranian regime's willingness to participate in these negotiations given their past conduct. 

JAMES GLENDAY: And you'd be supportive of US military actions if a diplomatic deal cannot be reached? 

JAMES PATERSON: Well, it's not for me to endorse preemptively any decision that the US President might make about a military strike on that facility at Fordow, but I think it is very clear that Australia's interests are that Iran stop enriching uranium. The International Atomic Energy Agency has found that they are in breach of their commitments, that they're enriching far beyond what is necessary for a civilian reactor, and that they could be only weeks away from reaching the enrichment levels required to construct multiple nuclear weapons. They also have a very advanced ballistic weapons programme in Iran. So I understand why Israel, for example, regards this as an existential threat, why many countries in the Middle East regard it as a very serious threat, and Australia shares their interest in dismantling this programme. 

JAMES GLENDAY: Back in Victoria, former Liberal leader John Pesutto's career has been saved overnight with a large loan to clear his legal debt to Liberal MP Moira Deeming. This loan is coming from the Victorian Liberal Party, which you are a part of. Do you think this is a good outcome? 

JAMES PATERSON: Well, I hope now that the legal matters between Moira Deeming and John Pesutto are resolved. That the State Parliamentary Party in Victoria can get on with the job of holding the Allan Labor Government to account because the State Government here in Victoria is the worst government in the Federation. It has a fiscal situation completely out of control... 

JAMES GLENDAY: Sorry, James just to take you back to the question though, are you happy though that the Liberal Party is lending Mr Pesutto this money? 

JAMES PATERSON: Well, what I'm happy about is putting this matter behind the Victorian Division because it has been a major distraction over the last year or so and they've got a very important task ahead of them to offer good government to the people of Victoria given that we have a state budget that's out of control. We had crime stats out yesterday that show them the highest in living memory in this state, a health system which is crumbling. Education standards which are going backwards. Victorians deserve a good choice at the next state election. They need a Liberal Party that's focused on providing that to them and I hope the resolution of these legal matters allows them to do so. 

JAMES GLENDAY: So you didn't really answer my question though, is it a good resolution? 

JAMES PATERSON: Well, I wasn't a member of the Administrative Committee. I didn't participate in the decision, but I am pleased that this matter can now be closed from a legal point of view and that they can move on. 

JAMES GLENDAY: I just want to ask you, there's some stories around today, we're expecting an announcement from the Federal Government later about age verification for social media. Do you think that this can be done? Can under-16s be banned from social media using the technology available? 

JAMES PATERSON: Social media platforms are not safe spaces for children. They should not be on these platforms and we strongly support banning children under the age of 16 from these platforms. The federal government has given themselves plenty of time to test and trial this before it's implemented at the end of this year. So they should be able to get this right and I really hope that they're able to do so. We'll be holding them to their commitment to make sure that this is operational by the end of the year and children are being taken off these platforms where real serious harm is being done. 

JAMES GLENDAY: Now you've been moved out of the national affairs, national security space into finance. This week in Canberra the Treasurer spelled out some of the economic challenges facing the nation, talked about the prospect of tax reform. What sort of tax changes is the Liberal Party actually going to be open to? 

JAMES PATERSON: We're very open to any tax reform that delivers a more efficient tax system. Many independent experts say that the way we collect tax in this country is inefficient and holds our economy back and we would be more productive if we had a more efficient tax system. But we don't believe that Australians are paying too little tax and that we need higher taxes in this country. In fact, in a decade-low business investment crisis, in a productivity investment, productivity crisis and in a living standards crisis, the last thing the Australian economy needs is higher taxes. So we're not supportive of increasing the tax burden on Australians but we are supportive of sensible, holistic tax reform that delivers a more efficient system and we look forward to seeing what the Treasurer brings forward. 

JAMES GLENDAY: I just want to drill down into what you might mean by that. I mean some current and former members of the Liberal Party have pointed out in the past that wealth is taxed relatively lightly in Australia and income is taxed a lot. Are there any taxes you'd be open to increasing in order to deliver, say, an income tax cut to working people? 

JAMES PATERSON: An income tax cut is certainly a worthy objective, which the Liberal Party would be very attracted to and we're open to seeing what the Treasurer's plans would be to pay for that. But of course restraining spending is the best way to deliver tax reform and that is what this Government has failed to do. There will be 10 years of deficits and $1.2 trillion of debt on this Government's watch if they continue on the unsustainable trajectory that they put us on in their first term of government. So we want to see spending restraint as well as tax reform. 

JAMES GLENDAY: All right, we'll wait to see what tax ideas the Liberal Party comes up with in the coming years. James Paterson, we do appreciate you joining us this morning. 

JAMES PATERSON: Thank you. 

ENDS

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