Transcript | Sky News First Edition | 05 June 2025

Thursday 05 June 2025

Interview on Sky News First Edition

Topics: Labor and Greens join forces to increase super taxes, bleak GDP figures show economy on life-support, Bradfield recount

E&OE………………………………………………………………………………………………….

PETER STEFANOVIC: Well, if the Prime Minister opened the door to possible negotiations with the new Coalition over its proposed tax hike on big super balances, then the Treasurer Jim Chalmers has slammed it shut. He prefers a deal with the Greens, who appear willing to shift their stance. A very good morning to the Shadow Finance Minister, James Paterson. James, good morning to you. So, have you been dealt out of negotiations now, if you were ever in them?

JAMES PATERSON: Well, frankly, Pete, I thought the prospect of a deal was so faint and so remote, it wasn't really worth worrying about. I mean, the Labor Party would have had to compromise so fundamentally on what they proposed that in order to even sit down and talk with us, I didn't think they were likely to do so. It's unsurprising to me that they have now preferred to do a deal with their unofficial coalition partners, the Greens, because we were not in the business of helping a Labor government raise taxes. We're the Liberal Party, we're in favour of lower taxes. We're not in the business of breaching fundamental tax principles, like taxing unrealised gains. We didn't agree with their failure to index the threshold on this. And we certainly don't agree with the sweetheart deal that Jim Chalmers has done with his boss, which allows him to defer his tax obligations under his defined benefit pension, when everybody else has to pay this tax as soon as they cross the threshold, including during their working life. So this is a very bad bill. We'll be fighting it every step of the way and we're proud to do so.

PETER STEFANOVIC: Ok so is that the official party position, that you're opposed to it now?

JAMES PATERSON: Well, I just don't see how the Liberal Party could possibly support this bill. It is so egregious in its breach of taxation law principles. It is a tax increase, and we are not in the business of helping Labor governments increase taxes. And frankly, it was going to be inequitable in its application. So I don't see a world in which we could have supported this. And frankly I'm not surprised that Jim Chalmers would prefer to do deals with the Greens who are going to be much more accommodating, who are in favour of higher taxes, who are not worried about breaching these tax law principles, who are happy to participate in this grab raid on people's superannuation savings. 

PETER STEFANOVIC: So when you say you're going to use every step of the way to fight against it, how do you do that if you don't have enough support? If Labor's got all the support with the Greens?

JAMES PATERSON: Well you're right, this is a government that effectively has a Senate majority with its unofficial coalition partner, the Greens. And so for the next three years, if they want to do harmful things to the Australian economy like increase taxes on superannuation or anything else, then, unfortunately, it is going to be difficult for us to stop them through legislative or parliamentary means only. But we will use all the tools available to us in our arsenal to fight this tax in the public debate and through the media, as well as in the community, because the government, I hope, will at least see sense. I mean, have a look at the GDP figures out yesterday. This is an economy on life support. That is a very bleak set of numbers. We've got per capita GDP falling, we've got business investment falling, we've got an economy which is now shrinking in per capita terms, again, as it was last year. And the Treasurer's only answer to that is to increase taxes on investment, that is not a strategy for returning our economy to growth.

 PETER STEFANOVIC: Yet Labor is still the party of lower taxes, is it not?

JAMES PATERSON: Well, this is another demonstration of why that is a lie. The Labor Party's first bill coming out of the blocks, their first political priority is to increase taxes and the Liberal Party will be opposing them and fighting them every step of the way....

PETER STEFANOVIC: So the Treasurer....

JAMES PATERSON: I think we all know, deep in the DNA...

PETER STEFANOVIC: Sorry, sorry, James. I mean, just the Treasurer is right to point out that you had time to argue against this particular policy, but it wasn't capitalised on during the election campaign. So is your pushback too little too late on this?

JAMES PATERSON: Well, I'm grateful for the political advice from the Treasurer, but he should be focused on his day job, which is getting the anaemic rate of growth in our economy positive again, so that Australians’ living standards are rising, not falling. On his watch, per capita GDP is down, that's living standards are down, productivity is down and business investment is down. This is a very, very loud warning signal for the health of the Australian economy. And he has no plan to fix it. He's got no plan to increase business investment. He's got no plan to increase productivity. In fact, everything they've done over the last three years has been the opposite. They have increased taxes. They have increased regulation. They put unions back at the centre of the workplace. So the CFMEU and their other mates in the union industry get to run the Australian economy. And look at what the consequences of that are for Australians. It is diminished living standards. And what we need is a pro-growth agenda. We need an agenda that cuts taxes, that cuts regulation, that frees up the economy to be more efficient and to compete so Australians’ living standards rise again instead of falling as they are now.

PETER STEFANOVIC: Well, if you want to regain your position as the party of the lower taxes, what are you going to do about that? Are you going now beat them when it comes to the lowest rate, the lowest tax rate?

JAMES PATERSON: Well, we're starting by fighting this tax increase, which is their first priority coming out of the last election. We'll be arguing for lower taxes while they're arguing for higher taxes. And sadly, I suspect we'll have many other opportunities over the next three years to oppose Labor tax increases, and we'll also be taking to the next election, I think, a tax policy which will earn the support and trust of the Australian people. And one of the lessons we have learned from the last election is that the Liberal Party must always be in the position of arguing for lower taxes. And I assure you, on Ted O'Brien's watch as Shadow Treasurer and on my watch as Shadow Finance Minister, the Liberal Party will always be arguing for lower taxes.

PETER STEFANOVIC: Ok, just a final note on Teal MP Nicolette Boelle, who's picked up Bradfield now, the New South Wales seat. The Liberal candidate Gisele Kapterian was given a shadow portfolio but has obviously missed out now. Is there any embarrassment within the Liberal Party about that this morning?

JAMES PATERSON: Well, as I understand it, the New South Wales division of the Liberal Party is reviewing their legal position to ascertain whether or not they have any rights here to be considered. So I don't want to prematurely concede on Gisele's behalf. If she wishes to do so, or the Liberal party in New South Wales wishes to do so, they'll do so. I think it will be a great tragedy, though, if the people of Bradfield and the Parliament of Australia and the Liberal party miss out on having Gisele as a member in this term of parliament because she's an enormously talented person who had a really big contribution to make to the future of our country. So I really hope that she can join us in some capacity in this term. But if that's not the case, then I hope that people like Gisele run at future elections for the Liberal Party because we will be better for it.

PETER STEFANOVIC: Alright, James Paterson, the Shadow Finance Minister, appreciate your time James, talk to you soon. 

ENDS

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