Television interview - Sky News Afternoon Agenda with Tom Connell

TOM CONNELL, HOST:    There's been an unexpected increase in Australia's unemployment - it's now up to 4.5 per cent at the end of April, already ahead of Budget forecasts. I spoke a short time ago to the Employment Minister, Amanda Rishworth, and started by asking her if it means it could be the start of an economic downturn. 

AMANDA RISHWORTH, MINISTER FOR EMPLOYMENT AND WORKPLACE RELATIONS:    Look, the figures for April do show a softening of the labour market. Of course, that comes at a backdrop in April where we saw escalating conflict in the Middle East and that is having an impact across the global economy. I would note that, by historical standards, our unemployment figure is very low, and it is low compared to other similar economies. But of course, we're always looking at how we can create more jobs, and that is certainly a focus of the Labor Government. 

TOM CONNELL:    Does it make it the wrong time for the ACTU's call of an increase for minimum wage workers of six per cent?

AMANDA RISHWORTH:    We want to see workers have an increase in their wages. I'm not going to make a comment on a particular number. Our Government has called for an economically sustainable real wage increase. Of course, the Fair Work Commission is independent and will consider a range of factors including economic circumstances - it takes all of these things into account. But particularly those on the minimum wage do deserve a wage increase, and our Government is certainly backing them. 

TOM CONNELL:    What do you define that as though? Because we've got inflation set to peak in this quarter of 4.8 per cent. Does it have to be above that, or do you look at the year as a whole given inflation is meant to go fairly significantly down from that point? 

AMANDA RISHWORTH:    Well of course that's a matter for the Commission. But they can take in forward predictions of inflation, there's point in time inflation, which- and how that combination of figures inform the Commission is a matter for the Commission, we don't want to be prescriptive. What we point out in our submission and what we are saying is that workers do deserve a pay increase. 

TOM CONNELL:    You've waded into AI. I'm curious as to what measurements, how you're collecting data, not just on how many job losses, if you like, there’ve been so far, but forecasts for the future. How are you keeping track of what would matter for a lot of Australian workers? 

AMANDA RISHWORTH:    AI presents a big opportunity in workplaces, but of course there are people that are anxious about its impacts. And so we certainly use a range of publicly available information, as does Jobs and Skills Australia, in tracking this. Of course, Jobs and Skills Australia has showed that the vast majority of jobs will be augmented as opposed to being replaced by AI. But what I've also been talking about is making sure that if jobs are augmented by AI, that the workers currently in place are supported to do those jobs and they get the skills, they get the training and are not just discarded and replaced by other workers. So there's a huge opportunity with those in the workplace where their jobs may be augmented by AI, is actually supporting those workers to use it in the workplace, upskill, support them. That is critical in the transition and will give confidence to people that they're not disposable. 

TOM CONNELL:    There are so many different predictions around what it will do, though. If we get a sense that the alternative is happening, that there are big job losses, how will you know as Minister? Do you see it as your job to be keeping a close eye to see if it's unfolding in a different way - that is meeting very high job losses? 

AMANDA RISHWORTH:    We certainly, through my department, do collect a range of different data to try and look in, in potentially real time, what's happening in the labour market. Some of the early indications suggest we aren't seeing the level of reduction in graduate jobs, for example, than potentially was predicted. So, we will have to be keeping a careful eye on it and that will have to be collected from a range of different data sources. Obviously, it will look different industry by industry, so we will be certainly keeping a close eye. There will be new jobs that will come out of this as well. No doubt about it, there will be new jobs that will exist as a result, and it will be important that Australians have the skills to take up those new jobs - that's really important, and that people within companies now are retrained also. So, there's an important piece of work to support that transition, but also make sure people are getting paid for using their human abilities, like judgement and empathy. You can't replace that with AI, and so it's really important that they are valued in workplaces as well. 

TOM CONNELL:    I wanted to just ask you about the biggest controversy out of the Budget, changes to the CGT negative gearing, in particular on small business. Is Labor weighing up at all in any way a change to the proposed laws that would change on CGT when it comes to how they relate to small business? Is that on the table at all? 

AMANDA RISHWORTH:    Well, let's be very clear. What we are doing is making a level playing field when it comes to the way people earn their income. At the moment, of course, people can earn their income through assets or they can earn their income through a wage. There's been distortions in the way that’s taxed, and so we are levelling the playing field when it comes to taxation. There's been a lot of discussion around how start-ups fit into that and, as the Treasurer has clearly said is that there is discussions going on about how start-ups fit into this. But I want to be really clear, Tom, we are not talking about a tax that people pay annually in a small business. Indeed, any real gains, which is what we are now looking at, don't occur until someone sells a business. And many businesses don't even pay- small businesses don't even pay capital gains or very little because of the exemptions that are currently in place which we have no plans to change. So, there's been quite a big scare campaign run out there. But really, what this is about is making sure workers are getting a fair go, levelling the playing field when it comes to things like allowing first homeowners to get in and buy their first home. And that's why, as part of this Budget, there's also been five different ways that we're actually cutting taxes for working Australians. And this is a really important part of the Budget about how we level the playing field. 

TOM CONNELL:    Sounds like staying the course. Minister, appreciate your time today. Thank you. 

ENDS