ROSS STEVENSON:
We're grateful for the time of Josh Frydenberg, Federal Treasurer. Treasurer, good morning to you. Does that mean for example money that has been saved by people by, for example, not travelling overseas and going on holiday?
JOSH FRYDENBERG:
Absolutely. And good morning, Ross and Russ, nice to be with you. It's money that has been saved through a combination of ways. Firstly, people not being able to travel as much, people not being able to go to the cafes and restaurants as they normally would have over the course of the last two years, the tax cuts that have flown into people's pockets. The broader income support that we have been providing has actually boosted household disposable income, particularly those lower income earners across the country. And of course people have also been more cautious than they otherwise would be during a pandemic and that means that their savings rate has increased.
RUSSEL HOWCROFT:
Treasurer, is the messaging here, "okay, so the Government has done a lot to support the economy over the last two years. Everyone, there's a truckload of money in private hands could you please start spending"?
JOSH FRYDENBERG:
Certainly we're starting to see that money being spent. Business investment, for example, is particularly strong even despite the pandemic, and we've been providing further tax incentives for businesses to invest, whether it's new machinery and equipment, upgrading on office or a production line or indeed, you know, a tradie getting new tools. All of that is happening. But as we move to the next phase of the pandemic, and Omicron is obviously less severe than Delta and the other variants, we learn to live with the virus, it gives people confidence that there is that buffer, that there is that money there that will be spent and that will generate economic activity and of course jobs.
ROSS STEVENSON:
I think I read a figure this morning, Treasurer, about unemployment, that the predictions about unemployment I think involve the number 4, is that possible?
JOSH FRYDENBERG:
It's incredible actually what's happened to our labour market. Again this is a function of a number of things. Firstly, increased economic activity through the Government spending, but also the fact that, you know, international borders have been closed so some of the international arrivals haven't got here as they otherwise would. But to see an unemployment rate today at 4.2 per cent, the lowest in more than 13 years, is truly remarkable. And we are, you know, heading towards full employment. We are heading towards having for only the second time in the last 50 years an unemployment rate sustained in the low 4s. What's really pleasing for us is that since we've come to government there are 1.7 million more Australians who are in work and 1 million of those are women, and we've seen that the youth unemployment rate has now come below 10 per cent for the first time in many, many years.
ROSS STEVENSON:
Okay, Treasurer, let me toss you a political hand grenade. Be careful how you handle it. Is immigration bad for the economy?
JOSH FRYDENBERG:
Immigration is not bad for the economy. Immigration is good for the country, but of course you need a balanced immigration program. You need one that targets skilled workers because they obviously enhance our economic productivity. You also want to encourage family reunion because that's going to be of great benefit to those people, as well as a humanitarian program, a generous program where we take people who are much less fortunate than ourselves. That's important for our country, but also protecting the integrity of our borders, and that's why so many Australians very much support our strong border protection policies, because they want people to come in through the front door but coming through the right door.
RUSSEL HOWCROFT:
So, Treasurer, you'll be pleased to know I was doing a bit of Bernie Sanders reading over the weekend and he was, well, lamenting the increased gap between the rich and the poor in the US as a result of the pandemic. Has that happened here?
JOSH FRYDENBERG:
Look, it's a really important question, Russ, because what we've seen with historically low interest rates is that the value and the prices of capital has actually gone up, so housing prices have gone up, commercial property prices in many cases have gone up, and the people who own that capital have actually seen their overall wealth go up. There is, you know, a challenge there in this time of, you know, historically low interest rates. But we're also encouraging tax relief and we're focusing on low and middle‑income earners. The fact that the unemployment rate has come down so significantly means that more people are in jobs, many people who haven't been in a job for some time have now found work, and there are hundreds of thousands of job ads available as well. Overall it is challenging for the economy. Some people are definitely doing it pretty tough, but other people have been able to find work and more people will in the coming months and years ahead too.
ROSS STEVENSON:
Good on you, Treasurer. Federal Treasurer Josh Frydenberg, thank you for your time this morning.