FIONA KOTVOJS:
It’s a real pleasure to be here. I’d like to thank Meccanica Engineering for having us and showing us their amazing business that’s here in Googong. I’d also like to welcome our Treasurer, our Minister for Employment, Skills, Small and Family Business and Senator Jim Molan. It’s a real pleasure to have you here in Eden-Monaro this morning. Our priority is on rebuilding. Rebuilding our communities after the bushfires, floods, the ongoing drought and COVID-19. Today’s announcement really demonstrates our commitment to small business, the heart of our community. Eden Monaro needs someone who is able to deliver through Government. I look forward to continuing to work for our electorate to deliver, to rebuild, to strengthen our communities, to strengthen our business and employment opportunities. And now I would like to welcome the Treasurer, Josh Frydenberg, thank you.
JOSH FRYDENBERG:
Well thanks very much Fiona, thanks to you, and to Jim Molan, to my ministerial colleague Michaela Cash and of course Robert from Meccanica Engineering, a great family business more than half a century strong that is employing people from around the district including a young apprentice we just met before, helping to make state of the art engineering and technological equipment for our Defence Forces. And they are going to be the beneficiaries of the extension of the instant asset write-off that we are announcing today. Jobs, jobs, jobs. That is what is motivating the Morrison Government. We’ve just been though a once in a century pandemic and there is still a long way to go. But as the restrictions are being eased people are getting back to work, and today we’re announcing a $300 million boost to investment across the country. Some 3.5 million businesses will be able to go and purchase equipment or machinery or tools up to a value of $150,000 as many times as they want and then write it off all in year one, instead of over a number of years. That means that if you need a new coffee machine in your café or an industrial oven in your restaurant or a tractor on the farm or a truck or a van to deliver your goods and your produce. This extension of the instant asset write-off for six months at a cost of $300 million will help create jobs. We’ve been through some difficult times but the nation has made great progress. We’ve flattened the curve and people are getting back to work and we want businesses to get back to doing what they do best, growing, innovating and hiring people across the economy. Michaelia.
MICHAELIA CASH:
Thank you Treasurer. It’s fabulous to be here today at Meccanica Engineering, a family business here in Googong. But also to be here with our candidate for Eden Monaro, Fiona Kotvojs, and of course my friend and colleague, Senator Jim Molan, but also with Robert and Marco. They are typical of small and family businesses in Australia. Marco, he started this business 55 years ago. He commenced with a journey in Italy, moved to Switzerland and then to Australia. And his son Robert today, and his wife, are integral in this small and family business. Small and family businesses in Australia - as the Minister I'm always humbled by their resilience. And the business we're at today, Meccanica Engineering, they employ an apprentice and they will soon be taking on another apprentice. They also have plans to expand their business, which is a good thing. But they also have plans to utilise the instant asset write-off, and we're here today with the Treasurer to announce the expansion of the instant asset write-off for another six months. As a member of the Morrison Government, I'm very proud to be part of a government that understands that small and family businesses, they are the backbone of the economy and we need to do whatever we can to support them. In January of this year I was here, in this part of the world, we of course had the bushfires and they were devastating. We then moved on to the closing down of the global economy with COVID-19. But the resilience of family and small businesses throughout Australia has been absolutely amazing and that is why, as a government, we have introduced a suite of measures from tax cuts through to the extension now of the instant asset write-off to ensure that they're able to prosper, grow, and - as the Treasurer has said - create more jobs for Australians, which is exactly what this family business, Meccanica Engineering, are doing. Treasurer.
JOSH FRYDENBERG:
Thanks. Robert, do you want to say a few words?
ROBERT:
I would just like to thank the Treasurer, the Minister, Senator Molan and Fiona for attending this morning. I think this announcement really comes at a critical time in our development and our growth. It takes uncertainty out of uncertain times and it means that we can focus on growing and taking advantage of opportunities once this lockdown eases.
JOSH FRYDENBERG:
Thanks Robert, any questions?
JOURNALIST:
Will the six month extension to the instant asset write-off scheme be enough or will businesses need more time to recoup funds before they can invest or buy assets?
JOSH FRYDENBERG:
Well we do know that there are businesses that are ready to invest right now. In fact talking to Robert he has just purchased an air compressor which is helping to support their business and there will be many other businesses that are looking not just at today but also looking at tomorrow, looking at the future. Knowing that people will be back at work and people will get back to get their pre-COVID levels of activity as the restrictions are eased. Of course we continue to evaluate the program, and this is an extension and expansion of the program that we’ve seen in recent times. Hundreds of thousands of businesses right across the country have used this program and more will into the future.
JOURNALIST:
There’s the extension of time that the program is available but do you have any indication of the uptake thus far? Has it been undersubscribed [inaudible]?
JOSH FRYDENBERG:
Well we know that hundreds of thousands of businesses have taken up the program in its previous format. Now that we’ve extended it to $150,000 and to businesses up to $500 million in turnover we will see that level of take up once the end of the financial year has arrived.
QUESTION:
On JobKeeper is there a guarantee the system will be in place until September or that all currently eligible businesses will keep receiving it until September?
JOSH FRYDENBERG:
It is in place, legislated to September. What we will undertake is a review, that we said at the time of announcing the program mid-way through. And we will be looking to see how we can strengthen and improve that program. That is the wise thing to do. What we announced yesterday was some changes for the childcare sector which have been strongly welcomed by the childcare sector and which will continue to enable them to provide the important services they…
JOURNALIST:
So other sectors could be cut off like what we saw with childcare yesterday?
JOSH FRYDENBERG:
Well firstly with childcare what we’ve put in place is a transitional arrangement. We’ve eased the activities test but provided an employment guarantee and we’ve also provided a transition payment. And it’s important to understand that the Early Childcare Alliance, other key stakeholders, have welcomed this move because what we’re seeing is more people start to use those childcare support services. When we first announced the reform package, the viability of a number of childcare centres was threatened and we had to ensure that childcare centres could be provided, particularly for children of essential workers because we needed to get them to the front line. That support has worked, 99 per cent of childcare businesses remained operational. Now we move to the next stage which is an effective transition.
JOURNALIST:
Treasurer is it likely that JobKeeper will be wound back for other sectors with transition packages?
JOSH FRYDENBERG:
Well as I said there’s a review at the midway point and I will announce the outcomes of that review on 23 July when we provide an update about the economic and fiscal situation. But it is legislated to September and as the Prime Minister has said it’s providing a very important service to so many Australians. But more people are going to get back into work, that’s a good thing. National Cabinet has agreed to a three stage process of easing the restrictions which Treasury forecast will see 850,000 people back in work.
JOURNALIST:
But the changes to the childcare system show that there’s a precedent for tinkering with this outside of that review, so can you guarantee that no other industries will be changed before that review takes place in September?
JOSH FRYDENBERG:
Well of course the review is the main process that we are now going through to analyse the program and for example one of the issues we’ve talked about is some people are getting paid more under JobKeeper than they were previously getting under the arrangements that they were under with their employer. That’s an issue that we’re looking at in the context of the review.
JOURNALIST:
In which sectors are we seeing a bounce back of demand earlier than expected?
JOSH FRYDENBERG:
Well construction is one sector where we’re starting to see more activity. Mining has been working effectively through the crisis and again strong demand for our exports has been reflected in commodity prices. We’ve also seen agriculture be another sector. Now hospitality is a challenging one because the restrictions are still in place. Tourism is a challenging sector because of course the international borders remain closed and then when it comes to housing, the Government responded with a specific housing package of nearly $700 million and we have already started to see a great deal of interest from families who are looking to build their first home.
JOURNALIST:
Those industries that do need further support, the arts sector as the one the PM has flagged, what is the timeline for when they will have some certainty for the future of their funding or other support?
JOSH FRYDENBERG:
Well the first thing to say, and Paul Fletcher had an excellent article in The Australian today, outlining how the arts sector is benefiting from JobKeeper and a whole range of support measures that we have put in place. So for example, JobKeeper is supporting people at Opera Australia, at Queensland Ballet, at the Melbourne Theatre Company, at the Sydney Symphony Orchestra. You won’t hear the Labor Party talk about all those people in the arts sector who are benefiting from JobKeeper. But we also know, that on top of the $27 million we have already announced for the arts sector, including for indigenous artists and for regional art organisations, and $10 million for a group called Support Act, to provide financial support for those in the arts community who are in need, we are looking at our other options.
JOURNALIST:
The Prime Minister says that the Government is looking at everything with fresh eyes, why did the Finance Minister on Sunday rule out GST reform as part of this reform mix, why is it being left up to Dominic Perrottet to make the case for GST reform?
JOSH FRYDENBERG:
Well Dominic Perrottet has together with the Victorian Treasurer, talked about stamp duty and land tax and changes there and I have said that I welcome that discussion and their initiative and we look forward to them using the strength of their balance sheet. What we are focused on is jobs. We’re not focused on higher taxes, we’re focused on jobs. Now when it comes to more jobs, our focus has been on skills, on flexible workplaces, on rolling out our $100 billion, ten year infrastructure program and with initiatives like the one we announced today.
JOURNALIST:
So there doesn’t need to be an increase to the GST or broadening of the base in order to get rid of those ineffective taxes?
JOSH FRYDENBERG:
Well as I have said in the past, we have no plans to change the GST. What we are focused on as a Government has always been lower taxes.
JOURNALIST:
Have you got an agreement with the Five Eyes Finance Ministers for a meeting if so when and what is the rationale in using this intelligence alliance for economic discussions?
JOSH FRYDENBERG:
Well the five countries, the United States, the United Kingdom, Canada, New Zealand and Australia have coordinated for some time very effectively, on issues of strategic importance. We share values, we share interests. Indeed in many cases we share a common history. It is only sensible that in a challenge such as the COVID pandemic has created that we again coordinate and that we again talk to each other on a regular basis about the economic sphere. I have been having plenty of bilateral discussions with my partners from those countries. I have also been participating in G20 meetings and OECD meetings and IMF meetings with counterparts. This now will enable us to have a further consultation with them and I think that should be welcomed.
JOURNALIST:
Is Australia strengthening ties with western democracies after the economic threats from China?
JOSH FRYDENBERG:
This is not about one particular country. This is about coordinating with trusted partners of Australia. We have many other trusted partners. The Prime Minister just did a video conference with the Indian Prime Minister just a few days ago. I’ve just spoken recently with my Indonesian counterpart, who I enjoy a very good and effective working relationship. Our Foreign Minister and our Trade Minister are in constant dialogue with their counterparts. Australia is an outward looking, progressive nation that relies on heavily on trade and investment. But at the same time there are new complexities in the geopolitical environment and we need to talk with our counterparts from those countries on a regular basis.
JOURNALIST:
There are hundreds of thousands of Year 12 students, university leavers who are going into the last six months of their studies and will end up hitting a jobs market that is possibly the worst that many have seen for generations. What's your advice to those people who now are going to be looking for their potentially first qualified job or first job out of school, facing the highest unemployment in years?
MICHAELIA CASH:
Well, I'd say in the first instance consider vocational education because that means that you'll be skill ready to day one and adding value to your employer's business and that's why the Government has such a huge focus on skills. Go to the Jobs Hub website. What the Jobs Hub website does is actually tell you what jobs are available in your area. You can also then go to the skills match form and have a look at the skills that you need. So to any young person considering what their career may look like in the COVID-19 economy, I would say absolutely consider vocational education and training. Consider an apprenticeship. I've got a lot of support mechanisms in place for employers who do want to take on apprentices like here at Meccanica Engineering. I'd also say, look at those areas that are in demand. Look at the pick-up in the construction industry, look at the mining industry, look at the health and aged sector, look at cybersecurity. Consider what short courses you can do to upskill yourself. But certainly, consider a vocational education because employers are looking for job-ready employees from day one and that is exactly what a vocational education will give you.
JOURNALIST:
But it's not going to be much benefit to university graduates, for example, who are facing tough conditions as well. Is there any support or assistance that they can be offered?
MICHAELIA CASH:
We have a number of support mechanisms through Government and in particular, if you're employer needs you to upskill, as I said you can go on and have a look at the Government's support for upskilling. For this particular point in time our focus, as the Treasurer has said, is getting those additional 850,000 people who lost their jobs back into the workforce. That is our focus as a government.
JOURNALIST:
Treasurer what’s your message to the three federal MPs who attended the Black Lives Matter rallies over the weekend? Should they be returning to Parliament tomorrow?
JOSH FRYDENBERG:
Well the politicians should be leading by example and the medical advice was clear. Don’t go and join tens of thousands of people and demonstrate. Find another way to voice your concerns. So it’s very unfortunate that those demonstrations went ahead in the way that they did. I think it reflects an unjustified complacency across the community. People think that we’ve seen the end of the coronavirus. We haven’t. What we fear is a second wave. What we’ve seen is great success on the health front because the community has banded together. We’ve followed the health advice to this point. People have practiced social distancing, we’ve had brave people working on the frontline in our health system. Businesses have been hurt, people have lost their jobs, families haven’t been able to go and pay their respects to those that they’ve lost, at funerals or to celebrate the marriage of loved ones, or indeed to stand by their mates and commemorate the ANZAC tradition. We’ve all done so because as a community we’re focused on one thing, flattening the curve and that’s what we’ve achieved. But these demonstrations put that at risk and that is very unfortunate.
JOURNALIST:
But what’s the Federal Government doing to address the high rates of indigenous incarceration *inaudible* that we’ve seen?
JOSH FRYDENBERG:
Well we’ve already seen Ken Wyatt talk about that very issue today and on the front pages of our paper is Government led initiatives to try and reduce that level of incarceration, which is too high. I mean the numbers I saw in the papers today were showing the Indigenous community, around 3 per cent of the overall population, but up to 30 per cent of the incarcerated community, that is too high. That is unacceptable in modern Australia. So governments, working through the National Cabinet dare I say it. The Prime Minister has established a mechanism to work through these issues with the National Cabinet, we can make real progress.
JOURNALIST:
So there will be more ambitious targets in the revamped Closing the Gap *inaudible*?
JOSH FRYDENBERG:
We’re absolutely working on ambitious targets and this is an issue that goes well beyond a Liberal Labor divide, or party divides or geographical divides. This is an issue where as a nation we come together with a common purpose.
JOURNALIST:
More ambitious than the current 19 per cent goal?
JOSH FRYDENBERG:
What has been talked about is an ambitious target and I understand that’s the focus of the discussions. Thank you.