JOSH FRYDENBERG:
Many Australians are continuing to do it tough. With 111,000 jobs being created in the month of August, the Australian economy is fighting back against the virus. Importantly, we have seen more than 450,000 jobs being created over the last three months. Of those jobs, 60 per cent have gone to women and 40 per cent have gone to young people. Today, we have announced that we are gradually bringing back the mutual obligation responsibilities. It is critically important to the strength of the Australian economy that where there are jobs available, people take them. Where there are jobs available, people take them. That is the purpose behind the mutual obligation requirements. Of course, in Victoria, it is a very different situation. People are still subject to lockdowns and stage 4 restrictions and curfews. Of course, those obligations are not being placed on those job seekers. It is only appropriate that where there are jobs available outside of Victoria, that people take them through the mutual obligation requirements.
QUESTION:
Do you believe there are cases of people rejecting decent jobs?
JOSH FRYDENBERG:
Of course, I am hoping that everyone who is on JobSeeker who is offered a suitable job, that they do take it. That’s the purpose of the mutual obligation requirements and by working with their job active and job employment service providers, people will have an opportunity not only to apply for jobs, but to find those suitable jobs.
QUESTION:
But what if the jobs aren’t there? Isn’t it a matter of…
JOSH FRYDENBERG:
There are jobs there and they are gradually coming back as the economy reopens. This is the critical point. This is primarily a health crisis that has had very severe economic impacts. But as the virus has got under control and the case of New South Wales is one in point where they have been able to manage the spread of the virus and keep their economy open, that jobs are coming back. We saw more than 50,000 of those jobs for the month of August come from New South Wales alone. So the jobs are out there and there will be more jobs coming back and the measures that we announce in the Budget on October 6, which is the next stage in our JobMaker plan, is all designed to boost that economic recovery.
QUESTION:
Treasurer, when will the more than one million Australians who are on JobSeeker know if that supplement will continue beyond Christmas?
JOSH FRYDENBERG:
We have always said that we’ll consider that before the year is out and that we are heavily leaning in to the continued support through JobSeeker…
QUESTION:
So it will continue beyond Christmas? That’s your consideration message?
JOSH FRYDENBERG:
Well the Prime Minister has been very clear that it’s a fair assumption that we will continue to provide support through JobSeeker. At what rate, and over what period, are decisions that have yet to be taken. But we are wanting to see how the labour market is developing, and that the jobs are coming back. Because the critical point is that we want to encourage labour market mobility. We want to encourage people to seek out, and to take those jobs, where they are available. That’s why we have been stepping down the JobSeeker payment. Again, we’ll have more to say about that. But we have said that before the year is out, we will be making a decision about the future of the level of the JobSeeker payment.
QUESTION:
Treasurer, in your design to boost jobs, is there some way that you can discriminate between states, or incentivise states, to do things that would enable jobs to come back faster in those areas?
JOSH FRYDENBERG:
There are things that we are considering about how we provide opportunities for states to spend the money that the Government is providing in order to create jobs, and we’ll again have more to say about that in the context of the Budget. But what we are seeing from the Federal Government is an unprecedented level of support. When it comes to JobKeeper, already more than $54 billion is out the door supporting more than 3.5 million Australians. We have brought forward $10 billion worth of infrastructure spending. In the context of the Budget, there will be many more measures, more spending, but also measures that don’t require a cash outflow, a payment, but can boost the economy to enable it to become more productive.
QUESTION:
What kind of options are you looking at there then? What do you mean?
JOSH FRYDENBERG:
Well again, we’ll have more to say in the context of the Budget. But it’s fair to say, that when we are providing support to the states, or to various industries, we want that money to be spent as quickly as possible.
QUESTION:
Could you explain what the changes are to mutual obligations being announced today and when can we expect another step up in those obligations?
JOSH FRYDENBERG:
Well you’ve got to apply for eight jobs over the course of the month, and you’ve got to take that job where it’s a suitable job, and you’ve got to work with your employment service provider. But again, this is not applying in the situation of Victoria, because they are subject to the stage 4 lockdowns.
QUESTION:
Why wasn’t the WA Government told in advance about the announcement that you would like them to take to increase their cap on international arrivals? The Premier says he was blindsided.
JOSH FRYDENBERG:
Well again, this will be discussed today at National Cabinet. But the Prime Minister has been very firm that we need to lift these caps, and it will be happening, and that if you look at the numbers New South Wales is taking the lion’s share. Under the new arrangements, they will be taking 3000 of the 6000 people that will be coming in, and they are already now carrying the lion’s share of those people coming in under the existing caps. But we want to bring more Australians home, we can do that through commercial flights, and that’ll be discussed today at National Cabinet. But I also want to point out that Michael Gunner, the Chief Minister of the Northern Territory, a Labor Chief Minister, has made it very clear that he wants to help the nation, and this is one way to do so.
QUESTION:
You’re two and a half weeks out from the Budget. Have you finished it?
JOSH FRYDENBERG:
It’s pretty much locked and loaded, yes it is.
QUESTION:
Treasurer, just on FIRB fees regime that you’re proposing, are you concerned that the increase in fees, particularly on residential property, might detract a lot of foreign investment into the country?
JOSH FRYDENBERG:
Well, the first thing to say is Australia welcomes foreign investment. We have been a net importer of capital, as you know, which has been a major way to boost our economy and, yes, superannuation savings are increasing dramatically, and they’re around $3 trillion today, but we still have a gap when it comes to the needs of building infrastructure and the like. Foreign capital has been really important to developing our industries, whether it’s been tourism or resources, for example, or agriculture is another example of where our foreign investment rules have enabled Australia to grow. The new prices that we’ve put on, the new fees, are internationally commensurate. They’re very comparable to what you see in other major jurisdictions. Australia remains very much open and welcome to foreign investment, but increasingly, foreign investment applications are complex, and they require conditions to be attached, and those conditions require compliance, and so we are significantly beefing up the resourcing inside of Treasury to monitor compliance with our foreign investment rules. And, as you’d be aware, Matt, we announced the National Security Test when it comes to foreign investment, I think this is a world leading initiative, and a range of other measures to streamline applications and foreign investment that we don’t think pose a risk to the national interest. But we are putting close scrutiny on every application, as the Australian people would expect us to do, because while previously there may have been a belief and an understanding that every application in the foreign investment space was designed to produce a better economic outcome and was designed around a commercial objective, that’s not necessarily the case today.
QUESTION:
You mentioned superannuation, will you change the Super Guarantee levy in the October Budget or is that a decision for a later time?
JOSH FRYDENBERG:
I’m not going to comment on the timing of that particular issue other than to say that it’s scheduled to increase from mid next year. I have noted the comments by the Reserve Bank Governor, the Grattan Institute, even ACOSS and even some in the superannuation industry about the trade-off between the increase in the guarantee and wages. That’s been an issue that has been well spoken about in the context of this issue. I would say that the Government strongly supports superannuation and it’s part of the whole retirement income issue and, again, on the issue of the increase in the guarantee I just note that it’s to occur from mid next year.
QUESTION:
Treasurer, why is New York University’s Sydney campus getting JobKeeper when Australian uni’s aren't?
JOSH FRYDENBERG:
Firstly all universities can apply for JobKeeper, as you may be aware. All universities can apply for JobKeeper. They just have to meet the threshold test, which is if you have a turnover of more than $1 billion, which most universities, or many universities are, then your turnover has to be down by more than 50 per cent. Australian universities have been receiving around $18 billion in support with, in terms of their domestic places, even though they may have been impacted, those number of places, by COVID. We have been there to provide that $18 billion of support. That is not support that is available to foreign universities that may have a domestic campus. It’s a different situation. You’re talking about an apple and an orange.
QUESTION:
But I thought foreign companies or foreign employees weren’t allowed to get JobKeeper, like those Dnata employees?
JOSH FRYDENBERG:
Foreign companies can get JobKeeper…
QUESTION:
Government owned ones?
JOSH FRYDENBERG:
Correct. It’s about a foreign Government fully owned entity here in Australia.
QUESTION:
But it’s still, it’s a contrast between a foreign university while Aussie universities miss out. So isn’t that unfair?
JOSH FRYDENBERG:
There are some Australian private universities that are also getting JobKeeper but as I say, all universities, public and private, are still eligible but it’s about the level of the test that they need to meet. The Australian universities, the Australian public universities, have also received this $18 billion worth of guaranteed support for domestic places. Thank you.