Tom Connell, Host: Well, Donald Trump and Xi Jinping have held a meeting over the phone that appears to have meant a warming in relations, both inviting each other to each other's country. Will it mean the tariff war dies off or is this a brief rapprochement? Joining me is the Assistant Minister of Foreign Affairs and Trade, Matt Thistlethwaite. Thank you for your time. I guess to some extent, the world always hopes these two superpowers get along. What did you make of the meeting and what we heard out of it? Is it. Does it seem as though things are better situated than before?
Matt Thistlethwaite, Assistant Minister of Foreign Affairs and Trade: G'day, Tom. Obviously, Australia wants to see a return to the global trading rules, which provided stability and certainty for nations and more importantly for businesses and workers. Anything that improves relations between two what are large trading partners for Australia is a welcome development. But we'll continue to talk to the United States administration about what we see as unfair and unjustified tariffs on Australian products and seek to have those removed as quickly as possible.
Connell: Why is the UK getting an exemption on the big increase on steel tariffs and Australia is not?
Assistant Minister: Well, obviously we need to try and put the case for our industry and we've been doing that. There's been three phone calls between Prime Minister Albanese and the United States President. We've got a very, very good steel industry. We think that these tariffs are unjustified and unfair. And at the end of the day, it's the American people that pay the price for this because tariffs are essentially taxes on products. Australia has a good quality product that we export to the United States and we think that this is unjustified. So, we'll continue to try and work with the Trump administration to have these impositions removed as quickly as possible.
Connell: Alright. What about the prospect of US imports of beef being allowed in? Because the Prime Minister said during the election, not on his watch, is this seriously up for negotiation?
Assistant Minister: Well, as we've said, we're trying to negotiate with the United States to have these restrictions removed. But what we've also said, and the Prime Minister's made this clear again this morning, is that we will not compromise when it comes to Australia's biosecurity laws, particularly around beef. Just as we drew a line in the sand regarding the Pharmaceutical Benefits Scheme, that's off the table. So, we will not compromise on our very strong and stable biosecurity laws, particularly when it comes to beef imports into Australia.
Connell: So, what does that mean exactly? Is there any prospect that the current ban would be lifted or not?
Assistant Minister: Well, we think that biosecurity is fundamentally important to the industry and we won't compromise on that at all. So, if it was to be a compromise, then we wouldn't go there. It wouldn't be up for negotiation. There are --
Connell: But you're saying there might be a path around it or not. Are you just saying there won't be US imports of beef or that you're now looking at ways around it? Because if there's a way around it, why not do that earlier?
Assistant Minister: There are already United States beef imports into Australia as there are from other nations. And we're constantly reviewing those biosecurity laws to ensure that they are strong and, and that they meet the needs of the Australian people. So, for instance, when there was a Mad Cow Disease outbreak, we stopped imports from European nations because we wanted to maintain the integrity and the strength of Australia's biosecurity laws. And that worked and that ensures that we have one of the best quality beef industries anywhere in the world. So, we won't be compromising at all on any of our biosecurity laws regarding beef, regardless of where it comes from.
Connell: Alright, I want to talk about a domestic issue as well. It seems to be one of the main starting points for Labor is that, well, we're going to have Parliament sitting soon enough in July. So, superannuation tax, of course, now Labor keeps saying, look, this applies to accounts of $3 million plus the new unrealised capital gains tax, but at the same time, well, one day it'll be indexed. I'm just wondering what the reality is on that. Because the last super tax introduced by Labor, not indexed, was in 2012. That applies to those earning $300,000 plus. Thirteen years later that amount hasn't gone up. The threshold's gone down to $250,000. So, realistically, is it going to be decades before Labor would ever increase this threshold or index it? If Labor indeed ever would do that?
Assistant Minister: Tom, we start with the principle of fairness and equity in the taxation system and we believe that at the moment the superannuation taxation system isn't delivering that, that people, predominantly wealthy Australians, can transfer their income into a superannuation fund to avoid paying their fair share of income tax and getting a concession. Now, the policy that we took to the last election was to tax people at the rate of 30% for balances above $3 million. That's the policy that we are seeking to implement.
Connell: Okay, but Labor is also saying and talking about this, well, one day it will be indexed. That can't really be taken at face value. The last tax in this manner Labor used, 13 years later there's no increase to the threshold and I assume there's no plan to increase that threshold as well?
Assistant Minister: Well, if you want to maintain the fairness and integrity principle, then obviously you need to constantly review the effectiveness of the taxation system. And in the last Parliament, we made changes to the Petroleum Resource Rent Tax because it wasn't delivering that fairness and equity principle. We made adjustments to the income taxation system in Australia in terms of the threshold because it wasn't delivering that fairness and equity. So, of course, governments are constantly reviewing and looking at that fairness and equity principle. And if adjustments need to be made, then they can be made.
Connell: Does that mean it could have further changes could happen along this regard in terms of revenue raising from superannuation you've not done yet in this space?
Assistant Minister: Well, at the moment, Tom, the policy that we're seeking to implement is the one that we took to the election. We have no plans --
Connell: At this moment's time, but we've heard a few different lines from super, from Labor on super, over the years. Not one jot, not one tittle. This means it'll just, it'll always be looked at. It's too big to ignore now, all these funds?
Assistant Minister: Yes, but we have had this policy for the last three years. We've sought to get this through the Parliament in the last term. We weren't able to achieve it, but we thought it's a pretty important policy and we took it to the Australian people again and we've had that policy endorsed. So, we're seeking to implement that policy as it stands at the moment.
Connell: Alright, we'll see then. As I said, it's going to be one of the first ports of call. Except that, yes, you did try to get it past the last Parliament, a little bit easier now with the Greens. We'll see what the details are. Matt Thistlethwaite, appreciate your time today. Thank you.
Assistant Minister: Thanks, Tom.