Joining us live now is the Prime Minister, Anthony Albanese. PM, good to see you, thanks for your time this morning.
ANTHONY ALBANESE, PRIME MINISTER: G'day Pete, my pleasure.
STEFANOVIC: So, you did get a tough break at the G7, that couldn't be helped. But do you expect Penny Wong to get you a meeting with Trump while she's at the Quad?
PRIME MINISTER: Penny Wong's meeting is with Foreign Ministers, I expect her to have a meeting with her co Foreign Ministers, including Marco Rubio at the Quad along with the Foreign Ministers of Japan and India. Just as I'll have a meeting with the leaders of the four countries involved in the Quad, the other three, when the Quad meeting is held in India in coming months. Today is an important day for the Government's priorities, which are, July 1 - delivering increased cost of living relief just as we said we would. So today an extra two weeks Paid Parental Leave, super paid on Paid Parental Leave for the first time, Paid Prac for people undertaking to be a teacher or a nurse or a social worker for the first time making a difference. Importantly a 3.5 per cent wage increase for 3 million Australian workers who need that. People on the minimum wage, people on awards that will make an enormous difference to them. As well as measures kicking in such as $10,000 for construction apprentices, the 30 per cent rebate on batteries for people who have solar panels on their roofs to make sure they get lower energy bills permanently, as well as of course, the $150 rebates - all of this kicks in today. As well as for small businesses, the $20,000 instant asset write off. All of this making a difference for Australians, fulfilling the commitments that we made either in the Budget or in the lead up to the election.
STEFANOVIC: More on that in a moment, but when do you expect to sit down with Donald Trump?
PRIME MINISTER: When we have a meeting, we'll have a meeting. And when it's scheduled that will occur. We'll see each other a lot in the last months of the year - that's when summit season occurs. Australia and the United States are both members, of course, of the G20, of the Quad, of APEC. We'll see each other quite a lot in coming months.
STEFANOVIC: So, Kevin Rudd has praised Donald Trump over his attacks on Iran and NATO's increased military spend. Is that a ploy to get Trump on side?
PRIME MINISTER: No, Australia has supported, of course, what occurred with Iran and Israel, and we've seen peace break out, or at least the conflict be a ceasefire. And that's a good thing that occurred.
STEFANOVIC: But with a firmer, more generous defence spend, might you have had more luck in getting face to face time with Donald Trump? Because it is important in the context of global events at the moment.
PRIME MINISTER: What's important is outcomes, and we've delivered $57 billion of increased defence expenditure over the medium term. $10 billion over the short term, over the forward estimates, including $1 billion we brought forward in our Budget in March. Australia doesn't just be passive here - Australia always pulls our weight. And as I, as the Australian Prime Minister, I'll talk up our contribution, because we are significant allies, we're significant players in delivering peace and security in our region. We're also a significant economy, providing goods and services to the world and making a difference. Which is why when I was in the United States a couple of weeks ago, we announced an additional $20 billion of investment into Australia, which will lead to thousands of jobs being created.
STEFANOVIC: But our defence spend, it's over 2 per cent. NATO's at 5 per cent now, that's the plan anyway. France is going towards 3.5 per cent. The UK is heading towards 3 per cent as well. Are you going to change it at all? Is Penny Wong going to change it at all in her discussions with the Quad this week? Or are you going to stay firm where you are?
PRIME MINISTER: Well, what we'll do is we'll invest in our capabilities. So, it's not a game where you do what the Coalition did during the election campaign which was say, ;they'll have this additional spending,; but they couldn't say where the money was coming from, they couldn't say what it was for. What we've done is have a Defence Strategic Review that's resulted in increased expenditure on specific assets that make a difference to supporting our capability as well as we're investing in our relationships. Our relationships in this region are very important. Measures such as the increased defence relationship and partnership that I announced right here in the Prime Minister's courtyard with Indonesia, the increased relationship that we have with Papua New Guinea as well. The announcements that we've made with Tuvalu and Nauru, important relationships for the Indo-Pacific region. We are doing all of that and making an enormous difference. And we'll continue to invest in whatever capability Australia needs to contribute to our national security. And that is what we will do and that's what my Government has done.
STEFANOVIC: Is China being prioritised over the US at the moment? I know you've got a trip to Beijing coming up soon.
PRIME MINISTER: No.
STEFANOVIC: But you've had more trips to see, more meetings with Xi Jinping than you have Donald Trump?
PRIME MINISTER: Well, Xi Jinping has been in office for some time, and the person who had Xi Jinping address our national parliament here was Tony Abbott - just for the record. I've met with the US President more than I have met with the President of China since I've been the Prime Minister. And I've travelled five times to the United States and one time to China.
STEFANOVIC: Paul Keating has blasted your tax on unrealised gains again, saying today's rise in the super guarantee that you talked about earlier means the average worker will end up with $3 million in super, therefore qualifying for unrealised gains to be taxed. Is he right with his numbers?
PRIME MINISTER: Paul Keating's right to support superannuation and it's a creation of the Hawke and Keating Labor Governments that Paul Keating, of course, as Treasurer, then as Prime Minister, championed superannuation to improve retirement incomes for Australians. And the fact that the superannuation guarantee rises today to 12 per cent is something that of course was delayed by the former Coalition Government who have always sought to undermine superannuation. We think it's important for individuals retirement incomes, but it's also important to take pressure off future Budgets as well.
STEFANOVIC: But is he right?
PRIME MINISTER: And Paul Keating will always champion superannuation, as will my Government.
STEFANOVIC: But is he right when he says the average worker will be caught up in it? If someone who starts work today, the average worker will end up with $3 million in super, therefore having their unrealised gains taxed.
PRIME MINISTER: No, well, these are very modest changes that are being discussed -
STEFANOVIC: But is Paul Keating right? I'm on Paul Keating now.
PRIME MINISTER: We are right. Well, good on you, you stay on Paul, I'll stay on superannuation and the superannuation guarantee being lifted.
STEFANOVIC: But are you avoiding it because he's right or is it because he's wrong?
PRIME MINISTER: No, I'm talking about superannuation. And our superannuation guarantee being lifted to 12 per cent is a very good outcome, as is, for the first time ever, superannuation being paid on Paid Parental Leave. It will make an enormous difference to the retirement incomes of women in particular. And that's been something that's been a gap in the system. Women retire with incomes far less than men across the board. And that makes, that delivers unfairness in the system. And that's why delivering superannuation on Paid Parental Leave is a productivity outcome. We have the Productivity Roundtable coming up here in August next month and that will be an important opportunity to look at other ways in which we can lift productivity. Women's workforce participation is a part of that.
STEFANOVIC: The final one, because I know you've got to go. But Sally McManus has said this morning that the tax should be indexed. Are you at least open to that change?
PRIME MINISTER: I'm not commenting on various things that you tell me other people have said. What I'm open to, is supporting superannuation.
STEFANOVIC: I mean, people come up with ideas and I'm just putting them to you because there's a lot of criticism out there.
PRIME MINISTER: Well, I'll wait and see what they've actually said, with respect. And that's what I do, and we respond appropriately as a Government. As a Government, what we have done is deliver the 12 per cent. What we've done is deliver superannuation on Paid Parental Leave. What we've done is deliver an increase in Paid Parental Leave, an additional two weeks. And we've delivered, of course, a 3.5 per cent pay increase for minimum wage and award wage workers, which begins today. What we've done is get inflation down to 2.1 per cent while keeping unemployment low and real wages increasing. That is something that we committed to delivering for Australians, that cost of living relief. And part of that is the short term measures like increasing wages. But part of that as well as increasing people's income security by having an increase in the superannuation guarantee. And it's a very positive day for your viewers.
STEFANOVIC: Are people actually going to be better off from today though or are those changes that you pointed out just keeping up with the times?
PRIME MINISTER: A 3.5 per cent wage increase compares with a 2.1 per cent inflation figure - that means a real wage increase. So, that makes a difference. We know people are still doing it tough, but that's why we are implementing the comprehensive plan, concentrating on the issues that really matter to Australians, making a difference to their lives. Which is why as well, on issues like housing affordability, we know is a big issue, we need to increase the supply of housing. One of the things we're doing from today as well is $10,000 apprenticeship incentives that will make a difference. And we know that it works because for the new energy apprenticeship incentive, there's 11,000 people who have taken that up as well, leading to more sparkies out there. Makes a difference for our national economy.
STEFANOVIC: Prime Minister, appreciate your time as always. Thank you.
