JAMES STEVENS:
It is my great pleasure to welcome Treasurer, Josh Frydenberg, here today to my electorate of Sturt. Of course, with Premier Steven Marshall who is also the Local Member here for Dunstan, Corey Wingard, the Minister for Transport and Infrastructure, and of course, Wolf Blass, who has been such a part of securing the money we needed to develop the Wolf Blass Community Centre which we are standing in front of. I was joined by the Treasurer at the beginning of the day at the Adelaide Holocaust Museum. I thank him so much for the announcement of $2.5 million to go towards that Museum. That is going to be a transformative investment for that facility and is going to dramatically enhance our ability to provide that vital education, particularly to young students, across South Australia. I would now like to welcome the Premier.
STEVEN MARSHALL:
Thanks very much, James, and again I would also like to welcome Josh Frydenberg to South Australia and congratulate him on the recent Federal Budget. There is no doubt this was a Budget like no other, certainly no other delivered for so many decades. It was an important Budget to support the, if you like, bounce back we need desperately here in Australia. We are particularly grateful here in South Australia for the very quick way that this Treasurer has moved to support as much employment, and getting people back to employment, as possible. There were further elements in this Budget which supported that, especially around getting young people into contracts of training, absolutely vital so that we are in this economic dip for a shorter period of time as possible. We are also grateful for the massively expanded allowances in terms of accelerated depreciation on investment and capital here in South Australia. We know this is going to drive hundreds of millions of dollars worth of investment in our state. We’re grateful for that. Probably the thing that we’re most grateful for is this ongoing relationship with the Federal Government. We’ve stopped all the fake fights, we’ve sat down, we’ve looked at the projects which are particularly important for our state and we found a very willing partner in the Federal Government, partners in our turn-around strategy in South Australia, big part of that is infrastructure. This morning we were up looking at that important project announced in the lead up to the last Federal election, the Magill road-Portrush road intersection, one of the busiest intersections in South Australia, more than 60,000 vehicles per day. Massive congestion. Even though we were there mid-morning, certainly not peak-hour, there was a huge volume of traffic on that. We know this is part of National Highway number one, taking a lot of freight from Port Adelaide all the way through to Victoria. Getting across east west has been extraordinarily difficult, this is a project we’ve needed for a very long period of time. Having this wonderful partnership with the Federal Government where we can look at the logical priorities for the people of South Australia and get on with it and deliver it is absolutely fantastic. So, we’re very grateful to the Federal Government, we’re particularly grateful to Josh Frydenberg for visiting us and we congratulate him on his Budget which is going to be fantastic for our state.
JOSH FRYDENBERG:
Thank you very much, Premier. Firstly, to James Stevens, great to be here in the electorate of Sturt. Thank you for your hospitality earlier this morning. To Wolf Blass, congratulations on this wonderful community centre here at the Norwood Football Club, I think you’ve got a good place to have a drop of your wines and to watch a bit of footy. So, well done to you on that. It was great that the Federal Government was able to play a role in partnering with you with that development. Corey, congratulations to you for getting all these major transport infrastructure projects underway across the state. A very big thank you to Premier Steven Marshall, who has shown enormous leadership through this once-in-a-century pandemic. His partnership with Scott Morrison as Prime Minister has been integral to the economic recovery that is now underway here in South Australia. As James said, earlier this morning we visited the Adelaide Holocaust Museum. We met with survivors and we had the Archbishop, who was present with us, as well as many other members of the Adelaide community. And it’s so important that future generations, and the young children of today, understand about that terrible time in world history, to say: ‘never again.’ We went from the Adelaide Holocaust Museum to an important infrastructure project. $98 million, a 50/50 split between the Federal and the State Government. Helping to create jobs, but importantly busting congestion, getting South Australians home sooner and safer. As Steven said, 60,000 cars a day through that intersection, and now it is going to be so much easier with this investment from the Morrison and from the Marshall Governments. Here we are, in South Australia, just a week after the Budget, and the important message for all South Australians is that this Budget will help create jobs in your state. 790,000 South Australians will get a tax cut as a result of the announcements I made last Tuesday, and which were legislated on Friday, just three days later. Those tax cuts will see more money in people’s pockets. That money will be spent across the economy, and, according to Treasury, will create 50,000 jobs. There’s also the record investment supporting business, enabling them to purchase new machinery and equipment, and then to write it all off in year one. Some 250,000 South Australian businesses will be able to access those investment write offs, that instant asset write off, helping to create jobs. There’s also the loss carry-back measure, there’s also investment in infrastructure. But our Budget is about doing one thing, creating nearly a million new jobs across the country over the years ahead. And with a jobs recovery, we will have an economic recovery, and with an economic recovery, we will have Budget repair. So, thank you very much, James, thank you very much to Steven for the invitation to be here. It’s great to be at a proud and history-making football club, in the Norwood Football Club, I wish Port Adelaide all the very best for their upcoming final. I say to the Adelaide Crows supporters, it’s been a tough year, as it has been for a Carlton supporter as well, but we’re always looking forward to next year, and it’s great to be here, in the great state of South Australia.
QUESTION:
Treasurer, just before you step away, with jobs figures coming out today, what’s your advice to people who are looking for a job, and are you doing enough for women and older people looking for jobs?
JOSH FRYDENBERG:
Well, we have a number of programs that are supporting seniors into jobs, one of them is called the Restart Program. So, if you’ve been on unemployment benefits, and are over the age 50, then we’ll provide an incentive of up to $10,000 to an employer to take you on. Every initiative, every program in this budget, is designed to create jobs for both women and for men, and the track record for the Coalition Government, is to see female workforce participation, pre-COVID, at a record high. In this Budget, we had a Women’s Economic Security Statement, the second such Statement, we have record investments in childcare, we have programs that are designed to create apprenticeships and traineeships for women to go into previously male-dominated industries: science, technology, engineering, and mathematics. Just the other day, I was in New South Wales and I was meeting with an electrician, who’s got 12 employees. He saw our announcements about apprenticeships on Budget night, and he decided then and there to take on two new apprentices, including his first female apprentice, a young budding electrician. So, that is what is occurring right across the country. And, I would say to all those South Australians, who are out there looking for a job, we are providing you with that support through JobSeeker, but also, in this Budget, we are creating, with JobTrainer, which we are partnering with the South Australian Government and with other state governments, in more than 400,000 new opportunities to train, the JobTrainer program and 50,000 short courses that we’re also investing in. We’re creating hundreds of thousands of training places, so that people can reskill and upskill and get into work.
QUESTION:
All of these measures, how soon do you expect them to be reflected in employment figures? Obviously, today would be too soon, but will they make a difference next month or the month after, or are we talking within one month or are we talking six to 12 months?
JOSH FRYDENBERG:
Well the economic environment is very fluid so in the most recent job figures, and obviously predating today’s numbers, we saw the unemployment rate fall from 7.5 down to 6.8 percent. That was the single biggest drop in 32 years. And we saw across the country 111,000 jobs have been created and jobs have been created here in South Australia and across every state except of course, Victoria, where they have been subject to the restrictions. Now that surprised the market. The market was not expecting the unemployment rate to fall as it did. In the Budget papers, I printed a number that said we would expect the unemployment rate to actually rise before the end of the year to around 8 percent. The reason being, is you’ve still got a very difficult situation in Victoria with jobs being lost in that state. But then next year, we will see the unemployment rate come down to 7.25 percent by mid next year, and to 6.5 percent the year after, then to 6 percent then to 5.5 percent by mid 2024. It’s going to take a long time to get these employment levels back to where we were. In fact in February, before the crisis hit, unemployment was at 5.1 percent. It will take years to get back to that point in time. But what we’re doing in this Budget, is providing every possible support to ensure that businesses can get to the other side and that young people and older people, and right across the economy, that workers can stay in employment.
QUESTION:
Treasurer when can we expect people to start seeing money in their bank accounts from those tax cuts in the Budget?
JOSH FRYDENBERG:
So the tax office is now updating those PAYG withholding schedules. Then the software companies have to move it through their systems and the expectation is that the money will be reflected in people’s pockets before the end of the year. And of course when they put in their tax return at the end of the financial year they will also get the benefit of what is called the low-and-middle income tax offset which we’ve put in place an additional year of that. So if you’re earning $60,000 here in Adelaide, you’re a nurse, you’re a teacher, you’re a tradie, you will pay $2,160 less tax this year compared to before our plan was rolled out.
QUESTION:
Treasurer you haven’t mentioned about Australians getting out from under the doona yet, that was part of the six points you were meant to mention today via an email that was mistakenly sent to us rather than you.
JOSH FRYDENBERG:
Well as you know, both sides of politics have sometimes seen that morning note go far and wide and in this case to the media. What I do know about that note is it sends a very clear message, that the Australian Government is focused on creating jobs and that we have the economic plan to do so. That was outlined in the Budget and we will continue to roll that out and get Australians back into work.
QUESTION:
Treasurer, will you consider extending the HomeBuilder scheme and why is it that only about 700-800 applications have been approved out of about 1,100 so far?
JOSH FRYDENBERG:
Well again we’ve seen great success with the HomeBuilder program because what it has done is provided the spark to the housing industry. And you’ve heard that not from politicians you’ve heard that from the housing industry themselves, with Denita Wawn saying it was one of the most important successful programs that the housing industry has seen. So it is providing that spark. We will continue to assess that program. But in the Budget, that was announced last Tuesday, we had other initiatives including for first home buyers, with the First Home Loan Deposit Scheme, an extra 10,000 places building on the 20,000 places today and then we’ve also put in place an extra billion dollars to NHFIC which is providing concessional finance to affordable housing. So there were plenty of measures in the Budget to support housing and when it comes to HomeBuilder we will continue to assess its rollout.
QUESTION:
Treasurer, just on West End which is 90 or so jobs lost here or going to be lost here, is that just tough luck for South Australia?
JOSH FRYDENBERG:
Well it’s very sad to see the closure of that brewery which has been a part of South Australian life. Indeed their close affiliation with so many of your sporting clubs reflects that close community involvement. What we’re starting to see across the beverage market, particularly with beers, we’ve seen a rise in craft beers, 700 plus craft beers pop up around the country, and the per capita drinking of beer has actually come down over time. Again these are market decisions and I will leave that to Lion as the company that has made that decision, but beer drinking, I enjoy one from time to time, will continue to be part of Australian life and they’ll continue to be lots of jobs in that sector.
QUESTION:
Should the South Australian Government step in and assist to keep that industry here or is it market force that drives it?
JOSH FRYDENBERG:
Well again, these are decisions that businesses have taken independent of Government, and it’s really important to understand that. There will always be churn in the labour market, there will always be some businesses that open up and some businesses that close. But if you go back to when West End started, I mean, there were a heap of beers that are now on tap at pubs that were not even invented then. And that’s the important point, we are seeing right across the sectors in the economy, including in the hospitality sector, including in the beer market, new products coming on the line and new jobs being created as a result.
QUESTION:
Treasurer, the Reserve Bank Governor’s said this morning that people are paying down credit card debt but they’re not really spending cash, they’re hanging on to it, is that concerning to you?
JOSH FRYDENBERG:
Well again, the Governor was making the important point that people are taking their own decisions as to how to spend the money in their pocket and some are strengthening their balance sheets. That's what the Governor of the Reserve Bank was saying. People have been able to build those personal fiscal buffers, which is very important. And they're decisions for them. So if they are paying down their mortgage or if they are paying down their credit card debt then that's a decision for them. That is not a decision for James or I or the Morrison Government to tell Australians how to spend their money. What I do know though is that the household savings ratio jumped to a record high during this crisis. In the June quarter it was about 19.8 per cent. To put it in context in the GFC it was 10.9 per cent. It will come down and the reason being is that at its peak people felt uncertain about their economic circumstances. So of course, they were more cautious, they didn't spend as much money. But also the health restrictions meant that they couldn't go out. Couldn't go to your local cafe or your local pub, you couldn’t take your holiday at your most favourite destination but now that the restrictions are easing, and it is fantastic to be here in South Australia, to see the restrictions having been eased, to see people go about their daily lives, to be at a press conference where no one is wearing a mask, and to go to a restaurant last night and to see the tables full, that's commerce and that’s due to the work of Steven Marshall and his team because they have been able to successfully suppress the virus and I give a huge shout out to all the health workers in South Australia for what they have done on the front line. And when I came in by commercial plane from New South Wales into South Australia just yesterday, they had a military-style operation there taking people's details, ensuring that South Australians are safe. That's an incredible achievement. I compare it with what's happening in Victoria, in my own state where people can't leave their homes for more than two hours a day. They can't go more than five kilometres from their home. People are not at work in the numbers that they should be. People are subject to these very strict restrictions and so my message to Daniel Andrews today, as my message to him every day is to give Victorians back their freedom this Sunday. Look what has been achieved here in South Australia. Look what Gladys Berejiklian has achieved in New South Wales. Victorians need their freedom back and businesses need to reopen again.
QUESTION:
Premier, just in reflection of the West End decision, 24 hours later, are you walking away from this, is this the matter done now?
STEVEN MARSHALL:
Well it’s very sad, but changing consumer sentiment has means that beverages are now being purchased in the distilling sector and we’re growing hundreds of jobs in distilling, in craft beer, unfortunately for the 95 workers down at the West End brewery, they’re going to be completing their job at the West End brewery in June next year. So look, we’re hopeful that this sector overall will continue to grow, hundreds of jobs being created in this sector, but changing sentiments towards craft beer, towards distilled spirits.
QUESTION:
Premier, are you satisfied or do you think it’s appropriate that Adelaide Oval is selling corporate packages with alcohol involved for the Christmas Pageant and obviously that’s going to mean that general entry children will possibly miss out?
STEVEN MARSHALL:
Oh no, our focus for the revised Christmas Pageant arrangements this year is 100 per cent on young people and families in getting them to see the fantastic displays. That’s been our focus since day one.
QUESTION:
But if there’s a cap on numbers, and corporate boxes are being sold for $2,500 as Alan said, kids are going to miss out aren't they?
STEVEN MARSHALL:
Our focus is on the children, getting as many there as possible, this was a novel approach, a once off, there was a lot of talk that the entire Pageant would be cancelled for the year, but the National Pharmacies Christmas Pageant is so important and I know that families are very, very pleased that Father Christmas will be coming to South Australia later this year.
QUESTION:
Families are going to miss out…
STEVEN MARSHALL:
There’s no suggestion that families are going to miss out, our focus is on getting as many families and children to the Adelaide Oval as we possibly can.
QUESTION:
On SA job figures, what are you expecting to see today?
STEVEN MARSHALL:
Well look, what we’ve seen with the most recent ABS wages figures is that South Australia has done well in the early the part of September, the issue for South Australia is what’s going to happen with the participation rate? Often we’ve seen recently a surge, last month we saw 14,000 new jobs being created in a single month, we’re hoping that we get a further increase in September.