Inflation is OUT OF CONTROL!!

Added: 2026-06-03

[00:00:01]You're watching First Edition, folks.

[00:00:02]Australia's population has surpassed 28 million. The milestone was reached earlier this morning. That's according to the Australian Bureau of Statistics Population Clock.

[00:00:14]The country is projected to surpass the next major milestone of 30 million people in 2035.

[00:00:22]Well, businesses brace for another hit today when the Fair Work Commission hands down its decision over the minimum wage. Currently stands at $24.95 an hour, and the Treasury is calling for a substantial increase. The ACTU wants a 6% jump, while the Chamber of Commerce wants around half that. Well, joining us live is the Nationals leader, Matt Canavan. Good morning, Matt. So, where do you hope the Commission lands this morning?

[00:00:47]>> Uh well, look, that's this is a matter for an independent body. The problem is, of course, whatever the Commission lands at is going to be eaten up by Labor's massive inflation.

[00:00:59]Inflation surged in this government, and keep in mind, inflation was the highest in the developed world before the Iran crisis. So, before we had any shots fired in the Middle East, Australia was suffering the highest inflation rate of any advanced economy around the world. And we now have an even more elevated inflation because of that conflict as well. So, that's why the wage increases we have seen the government trumpets have just not felt like for the Australian people an increase in their living standards because while their wage goes up, the cost of everything else goes up. The other point to make here on inflation is when your inflation when the inflation rate goes up, it's good news for Jim Chalmers. He takes more taxes from you because you're pushed higher up the higher into the higher tax brackets or more of your money's in those higher tax brackets made in those higher tax brackets, you pay more tax, and you don't get any you don't actually not actually better off. You just get more taken from you from the government, and that's why we have announced the Liberals and Nationals parties that we would stop that. We would stop this silent inflation tax and give you your tax back. And every year make sure that if inflation goes up, if government spending, government's money printing causes inflation to go up, then we'll change the tax rate so that you don't pay more tax.

[00:02:16]>> Are you hoping today for an increase to our lowest pay?

[00:02:20]>> Look, I would hope that the living standards of Australians continue to increase.

[00:02:25]But but the increase of minimum wage Well, look, it's I'm not going to set a particular figure. That's not for me to do.

[00:02:33]It's for this independent body to look at what's right. I certainly don't blame the workers or even the unions for inflation. The the reason we've got these high inflation rates and potentially therefore the need for higher wage increases and otherwise is because this government has mismanaged spending. They have massively let spending grow out of control. In fact, on a household basis, we are now spending $35,000 more per household since COVID than before.

[00:03:02]We got out of COVID, this government got elected, and it never brought that spending down, which was needed after JobKeeper ended, after all the assistance ended, this government just found new ways to spend your money.

[00:03:13]That's unleashed inflation. That's caused major headaches now for the Fair Work Commission and employers and workers who are just trying to keep their businesses and their households alive.

[00:03:24]>> Well, on that, what sort of a hit? I mean, it's going to be another hit for small business, whatever the decision today, right? Because there there will have to be some kind of rise.

[00:03:34]>> That's well, when inflation goes up, everything goes up. Price of everything goes up. Price of goods goes up.

[00:03:40]Wages Wages will have to go up. Yeah, well, wages have to go up too with inflation, obviously, to help workers survive, to help families stay in their homes. So, and of course, just to clear the labor market, that's what will happen. But that puts pressure then on the whole economy.

[00:03:56]Uh it puts it makes it more difficult then for the Reserve Bank as well.

[00:04:03]Uh and uh the problem then with government spending is not just the inflation it unleashes, it's the second round effects then of the responses from the Central Bank who will who has been having to raise interest rates. We have also had the highest interest rates in the developed world as well. Uh although the UK is jockling with us at the moment for that mantle.

[00:04:24]Uh that's all happened under this government. Under this government the economy is going down the toilet.

[00:04:28]Um and that's why we didn't Another reason why we didn't an early election I was going to say Peter, but back to you.

[00:04:34]>> Well, I mean on the Treasurer he he deflected questions yesterday that his policies were leading to softer auction clearance rates and an expected drop in house prices over the course of the year, instead blaming the opposition scare campaigns and misinformation. What are your thoughts on on what he had to say?

[00:04:54]>> Well, what I've read Peter is that the Treasurer has said that it's a good thing that auction rates are falling.

[00:05:01]And I suppose there are two ways to bring down house prices which have skyrocketed in this country.

[00:05:09]One way is to crash the economy and that will bring down price of housing but it'll bring down a lot else as well. Or another way is to actually stimulate the economy to get productivity going again to reduce red tape and regulatory costs to build more homes. They're the two ways and you can see those two ways now starkly at odds here in Canberra because as I say you would have the nation's Treasurer saying it's great, it's a good thing that the economy seems to be crashing at the moment.

[00:05:41]I mean I can't believe I'm reading that.

[00:05:42]This is clearly the worst economic management we've seen since the days of Gough Whitlam. They've totally lost control of their budget. They're now out there cheerleading negative news about the economy. What the hell is going on with this Labor government? What we should be doing is cutting the cost of building homes that to bring down the cost and that's what we announced in our budget reply that we would get that national construction code down. We'd slash the ridiculous red tape our builders in the construction industry has to suffer under. That would save $70,000 a year in the construction of new homes.

[00:06:16]That's what needs to be done. The approach is to get the economy moving not make it hit a brick wall to do something that you can't because you can't manage things properly.

[00:06:26]>> So let's get to close out on One Nation matter. I mean it's now the most popular political party in the country. That's according to Redbridge. But do you have to unite the right so to speak because together you'd mount a proper challenge against the government a couple of years time?

[00:06:42]>> Well, I I I think the real message to people is if you want to get rid of this terrible Labor government, you just got to put them last on your ballot paper.

[00:06:53]In terms of your question of you knowing the right, I'm not sure exactly what that will look like because I don't think One Nation has any interest in serving in a coalition with us. We've said the same. We'll have to be somewhat competing against each other in in election. But everybody has the power in the ballot box just to put the this terrible government last. If you do that, they're gone. Enough people do that, they're gone.

[00:07:18]And then you decide what you do above that and obviously we've got to compete for your votes. I think coming back to what we've been talking about, the most pressing issue for this country is to get some people in there who can manage the economy properly.

[00:07:29]>> discipline >> Yeah. With tough decisions and I think a Liberal and Nationals government would be the best thing to manage our economy right now.

[00:07:38]>> think One Nation's momentum can last for the next 2 years?

[00:07:42]>> Uh look, I don't know uh Peter. I All I focus on doing is uh is fighting for what I think is right for our country.

[00:07:50]And as I said, what I think is right for our country is that we do get people in that charge there that understand the economy. Angus understands the economy.

[00:07:57]Uh and I don't like blowing my own trumpet, but I'm an economist by background.

[00:08:01]>> He might be overshadowed by Tony Abbott now.

[00:08:02]>> and worked in the industry.

[00:08:04]Sorry?

[00:08:05]>> He might be overshadowed by Tony Abbott now though.

[00:08:08]>> Well, whatever it takes Peter, I don't care. We've got to beat this terrible government uh because uh what is most important we do not leave a country that is poorer and less well off to our children than the one we inherited. That is what we are facing starkly right now because this government is addicted to tax, addicted to red tape, and won't [clears throat] secure our borders.

[00:08:26]>> Okay. Matt Canavan, good to have you with us this morning. Thank you so much.

[00:08:29]We'll come