Television Interview, Sunrise

SUBJECT/S: Polls; tax reform; Biggest Defence export deal in history

HOST, MATT SHIRVINGTON: Major question marks are hovering over our next federal election, with new polls revealing that if were to be held today, it would be too close to call between Labor and One Nation. It comes as support for Pauline Hanson's party surges by 2 per cent following her address to the National Press Club. And it sparked fresh questions over what could happen in 2028. For more, let's bring in Deputy Prime Minister Richard Marles. Good morning to you. Considering the surge in support for One Nation, are you going to need The Greens in order to form government in 2028?

DEPUTY PRIME MINISTER, RICHARD MARLES: Well, I think what's really clear, Matt, is that when you look on the right side of politics, whether it's the Liberals or One Nation, they are going to need each other. And that's what's absolutely clear from all of this. And I think the other point that's really clear is that while we are focused on dealing with challenges around cost of living, reducing tax, we're making sure that medicine is more available, bulk billing is increasing, childcare is more affordable- both One Nation and the Liberals have opposed all of that. And so what you'll get with Pauline Hanson or Angus Taylor, whichever of the two, is parties which are going to make it harder in terms of dealing with the cost of living, not easier.

SHIRVINGTON: Based on the numbers right now, if they do share preferences, you're right, they could get elected. So, does that mean that you have to work with The Greens? And looking at it at the moment, you've already been forced to delay the NDIS legislation because of them. They're now demanding a second round of changes to your tax overhaul. How much influence do the Greens already have?

MARLES: Well, we are governing Australia and what we are doing is putting forward a Budget which we will work with the Senate to see passed. But in working with the Senate, what we want to do is have the budget which is trying to make housing more affordable, and put in place tax cuts for working Australians. And we'll continue to talk with the Senate about passing the Budget which brings into play those things. But you know, the Greens are completely separate from the government and we are governing Australia in the national interest and in doing so, very much focused on challenges around the cost of living.

SHIRVINGTON: Angus Taylor has already said it, is it time just to dump the Budget right now? Because the carve outs continue. They want removal of limited recourse borrowing arrangements in self managed funds. They're also worried about big business benefiting from new capital gains changes as well. Is it time just to blow up the Budget and start again?

MARLES: Well we're trying to make housing more affordable, getting more Australians into the housing market, seeing more first time buyers, I mean that's our focus. As is putting in place tax cuts for working Australians. Now I think working Australians want to see those tax cuts and we do need to see a return to some generational justice in younger people being able to realise the dream of home ownership in this country. So, we're very focused on those objectives. The tax reform is hard but we'll continue working this through because both of those objectives really matter for the country.

SHIRVINGTON: It's been really hard, hasn't it? Moving on though, slightly different announcement today. Australia's just signed its biggest defence export deal in history. Tell us about this multibillion dollar deal with Canada.

MARLES: Well this is a really big deal. It's a $2.5 billion deal to provide the best long range radar in the world to Canada. It's been here in Australia really, since the 1980s- the Over the Horizon Radar, and it's the cornerstone of our northern long range surveillance. Like Australia, Canada has vast areas that it needs to surveil so this is really useful for them. But I think the important point to understand is this deal will support 1,000 direct and indirect jobs in Australia. And the two biggest defence export deals we've ever done in our country's history have happened under the Albanese government and that is about supporting Australian industry, high tech industry and it's about supporting high tech, well paid jobs in this country.

SHIRVINGTON: We've got some good tech with the Wedgetail in the Middle East at the moment as well. Richard Marles, appreciate your time. Thank you.

MARLES: Thanks Matt.

ENDS