KARL STEFANOVIC:
Treasurer, good morning to you. Nice to be with you this morning. Have you managed to evacuate all embassy staff yet?
JOSH FRYDENBERG:
I understand that we have been able to take staff out, and that’s obviously been a precautionary measure given the escalating tensions there in Ukraine. We’re at a very dangerous juncture here, Karl. You don’t amass more than 100,000 troops on a border to check out the view or to have a picnic. Something is definitely brewing and it’s not a good thing, and it’s going to have major implications in the region. And, of course, it’s a situation we’re monitoring very, very closely with our allies.
KARL STEFANOVIC:
The US has been saying that same thing all weekend and for a couple of weeks now. It’s made its clear its response will be swift and severe, but on the other side of that, the Ukrainian President has said, “look, let’s not panic here.” There doesn’t seem to be any kind of panic inside Ukraine, so is the US beating this story up?
JOSH FRYDENBERG:
Absolutely not. Obviously, they’re privvy to intelligence. They’re obviously monitoring troop movements as well and looking at the military implications of the Russians moving in, but it’s a very, very dangerous situation and the reverberations will be felt far and wide if, in fact, the Russians do invade.
KARL STEFANOVIC:
How will Australia respond if they do?
JOSH FRYDENBERG:
Again I don’t want to pre‑empt what we may or may not do, but we’re certainly working with our allies and friends and particularly the United States. And, you know, talking about these major geostrategic challenges is one of the reasons why we hosted a Quad meeting of foreign ministers from Japan and India and the United States here in Australia, hosted by Marise Payne. We’re trying to get the big things right, and the big things are our economic security and getting people into a job and our national security, and that’s why we’ve struck this deal with the United States and the United Kingdom on the AUKUS remain which will get us into the best technology, not just the submarines but also artificial intelligence cyber warfare capabilities, advanced weapon systems, and that’s why we hosted this meeting of the Quad just days ago.
KARL STEFANOVIC:
The subs are 20 years away though, aren’t they?
JOSH FRYDENBERG:
Again, there is work underway now already on technological transfers to ensure that whether it’s our Navy, whether it’s our Air Force, whether our Army, having the best possible equipment available to them.
KARL STEFANOVIC:
Okay. New South Wales by‑elections at the weekend. Domenic Perrottet’s didn’t go his way. Not easy for incumbents at any kind of election at the moment, is it? Must make you pretty nervous.
JOSH FRYDENBERG:
Well, I think, Karl, that’s exactly right. It’s not easy for incumbents, and there is no such thing as a safe seat nowadays, particularly when you have got the uncertainty of a pandemic and you have some big names that are retiring, leaving the state political scene; whether it’s Gladys Berejiklian as Premier, whether it’s Barilaro as deputy or whether it’s Andrew Constance, former Transport Minister. We were encouraged by what we saw in Strathfield with a small swing to the Coalition, but, of course, disappointed to lose Bega and that was the first time…
KARL STEFANOVIC:
You’re picking the cherry off a lot of things that weren’t cherries. I mean, it was awful for you. The weekend was awful.
JOSH FRYDENBERG:
It’s a challenging time, but if you look at Andrew Constance, obviously I think he had a strong personal vote there in Bega and he’s running for us in Gilmore on the South Coast, and he’s been a fantastic member. We’re very hopeful at the federal election of picking up that seat. But again, as you said at the outset, by‑elections, you know, are historically pretty challenging for incumbents. We know we’ve got a job to do. And it was great to see you and the Prime Minister and Jenny and the young girls on the TV last night because that’s showing the Australian people a human side, the family home, of our Prime Minister, and I think that’s a positive thing to do.
KARL STEFANOVIC:
Okay. Quickly the AFR front page today has business and former political leaders saying the tax system is broken and slugging workers too much. Will you commit to a proper review after the election?
JOSH FRYDENBERG:
Again, we’ve been getting on with the job of cutting taxes and improving our tax system. Just last week, Karl, I introduced legislation to the Parliament to establish what’s called a Patent Box to encourage innovation in Australia’s biotech and medical sector where those companies that do the research and development here in Australia get a patent, generate income, will pay a company concessional tax rate of just 17 cents in the dollar. As you know, we’ve cut small business taxes to the lowest level in 50 years, and we’ve legislated very significant reform to our tax system, which has seen more than 11 million Australians get more than $30 billion worth of tax cuts. We have data out today which actually shows that young women in particular are real beneficiaries of our tax cuts with women 24 and under paying 20 per cent less tax under us compared to the Labor Party. We’re continuing to cut taxes. We’re always looking for opportunities for reform but our record of cutting taxes stands in very stark contrast to the Labor Party and their $387 billion of higher taxes they took to the last election.
KARL STEFANOVIC:
There’s nothing more romantic than talking about tax on Valentine’s Day. I hope you got Amie something nice.
JOSH FRYDENBERG:
That will be coming, but it was nice to spend the weekend with the family.
KARL STEFANOVIC:
Oh, you have not got her anything. Whoa!
ALLY LANGDON:
Oh, he’s in trouble.
KARL STEFANOVIC:
What’s wrong with you, Treasurer?
JOSH FRYDENBERG:
Well, I’m here, she’s there, but we’ll – there’s definitely a romantic dinner –
KARL STEFANOVIC:
Oh, you can’t pick up a phone, or flowers?
JOSH FRYDENBERG:
No, well – you’re my first date for the morning. How’s that? There will be a romantic dinner date coming soon.
KARL STEFANOVIC:
I bet she can’t wait. Thanks, Treasurer. Have a great day.
JOSH FRYDENBERG:
I bet you’re getting me into trouble now.
KARL STEFANOVIC:
No, definitely. You’re getting yourself into trouble.