KARL STEFANOVIC:
G’day, Treasurer. Nice to see you this morning.
JOSH FRYDENBERG:
Good morning, Karl.
KARL STEFANOVIC:
Look, Labor says they’re ready for an economy‑based election. Are you worried about them at all?
JOSH FRYDENBERG:
Our track record on the economy shows that the unemployment rate today is lower than when we came to government, that we’re steering Australia through the biggest economic shock since the Great Depression and that we are delivering lower taxes. Today, Karl, we have new economic data from the tax office and Treasury analysis that shows small businesses have got $5 billion worth of tax relief this year and next, and this is helping to drive more jobs with small and medium‑size businesses creating 600,000 jobs between April of last year and September of this year. And as you know, we’ve also delivered significant income tax cuts, and that’s important because for families at home, if you’re on $60,000 – you’re a teacher or you’re a nurse – you’re $6,480 better off as a result of the tax cuts that we’ve passed through the parliament. This is significantly helping the economy but also delivering more money into people’s pockets.
ALLISON LANGDON:
At the same time the cost of living is going up. When was the last time you had to fill up your car with petrol? Because prices are outrageous.
JOSH FRYDENBERG:
Did that a couple of days ago actually Ally and you’re right, prices have been increasing and there’s supply and demand issues at play here globally. What we saw over the course of last year during the pandemic is that demand for petrol as economies around the world closed down was obviously down and, therefore, the prices came down. This year they’ve been going up as that demand has been rising as well. So there are broader factors at play in that petrol price market.
KARL STEFANOVIC:
Right. The Prime Minister says petrol, electricity and interest rates will rise under an Albanese government. It seems to me you’re doing a fair job of that yourself, aren’t you?
JOSH FRYDENBERG:
Well, actually electricity prices have been down by 10 per cent, Karl, since December 2018. And that compares to electricity prices that doubled when Labor was last in office. And, as you know, petrol prices, electricity prices, they’re all part of what is called the consumer price index, which is effectively the inflation number. Now, since we’ve come to government we’ve been averaging at 1.8 per cent a year increase in that CPI. Under Labor it was increasing by 2.7 per cent per year. There are very different records on the economy. We’re for lower taxes, we’re for more jobs, and that’s what we’re delivering.
KARL STEFANOVIC:
But what are you going to do about petrol prices, then? Nothing?
JOSH FRYDENBERG:
On petrol prices we’ve got – the ACCC is the cop on the beat to ensure that there is competition in that market. But there are broader global supply and demand issues. And, as you know, this is a bit of spike. Last year was a big fall, and it will find its own equilibrium.
ALLISON LANGDON:
Are you okay with the cost of living expenses at the moment?
JOSH FRYDENBERG:
Of course we want to drive them down, and that’s why, for example, Ally, in the budget I announced an extra $1.8 billion spending on child care, which is going to put more money into people’s pockets who have got kids in child care. That’s why we’re investing heavily in the energy grid so that we can have a more stable and affordable electricity grid. And, as I said, that’s delivering lower prices. We also introduced some other reforms to do that. Across the board we’re seeking to drive down the cost of living and also try to create more jobs. That’s our key focus – lower taxes, more jobs and to ensure that people can have a cost of living that is affordable.
KARL STEFANOVIC:
I’m not sure that the cost of living is going down. I mean, inflation wise over the next couple of months it’s going to be pretty tough. In the paper today there’s even a story about a dishwasher in a restaurant getting 90 bucks an hour. Those pressures on small businesses are going to be pretty significant moving forward. Inflationary pressures like petrol, as we’ve seen, $2 a litre. I mean, they’re all tough expenses for families.
JOSH FRYDENBERG:
You’re absolutely right that, you know, some families are doing it tough, and we’re very conscious of the impact that cost of living pressures do have on people’s household budgets. With respect to trying to get down the unemployment rate, we’ve been pretty successful at doing that, Karl. When we came to government unemployment was at 5.7, today it’s 5.2 and the Reserve Bank is predicting it will go into the 4s next year. I don’t think we should lose sight of the fact that the economy has had a really big hit with the COVID‑19 recession. But we are recovering, and the good news is that the economy’s opening up, restrictions are easing, we’re seeing households spend more money out in the retail shops, the cafes and restaurants. Over the weekend I was in Melbourne in the CBD on Saturday night, the place was pumping. Restaurants were full. People were moving from venue to venue. And as you know, we’ve got an announcement today where we are opening up the international borders to skilled migrants and also to international students. And I think that will help the economy as well.
ALLISON LANGDON:
All right. You’re in Canberra. A big agenda set for the final weeks of parliament this year. But you’ve got two of your own senators are threatening to abstain from voting, from supporting any legislation unless the Prime Minister opposes vaccine mandates. You’ve got some pretty big dramas.
JOSH FRYDENBERG:
We’ve got some pretty important legislation too, Ally, before the parliament. One of the bills is about ensuring that our critical infrastructure is protected from cyber threats. Another is about protecting the community from high‑risk terrorist offenders. These are important pieces of legislation as well as other initiatives that I’ve got on the economy as well. We’ll continue to talk to our colleagues about those bills because we want to see them legislated and in doing so that will enhance people’s national security but also strengthen the economy.
ALLISON LANGDON:
Yeah, but you’ve got now a couple of your colleagues saying, “We’re not going to support them unless you do this.” Basically they’re holding the Prime Minister to ransom.
JOSH FRYDENBERG:
You always have some of these challenges to work through. The lines of communication are open. The last two weeks of parliament are never dull because it’s been another testing year I think for everyone. And we’ll continue to work through those issues but also seek to prosecute our legislative agenda.
KARL STEFANOVIC:
Just really quickly before you go, families entering Queensland face hundreds of dollars in PCR tests. The Queensland government is saying this morning maybe it should be on you. Why don’t you subsidise PCR tests through Medicare?
JOSH FRYDENBERG:
Well with, as you know, tests under Medicare are provided for, but these particular imposts apparently – they’re the Queensland government. Apparently that’s their decision. I’ll leave it to them to answer as to why they would want to put those costs on families. Our provision of the test through Medicare has been supported right throughout this pandemic. We’ve procured the vaccine, we’ve paid for pathology, we’ve supported both the public and the private hospitals and we’ve helped Australians get through this pandemic. We the Federal Government have picked up the vast bulk, Karl, of the bill in this pandemic, whether it’s the direct economic support from JobKeeper to the coronavirus supplement to the more recent business support payments, and, of course, the health bill. We’re doing our fair share. I’ll leave it to the Queensland government to explain this latest impost from them.
KARL STEFANOVIC:
Treasurer, good to talk to you on this Monday morning. Appreciate it, as always.