MICHAEL:
Small business in Surrey Hills, Zimt Patisserie, we’ve been here for 10 years now and we’ve been benefiting from the JobKeeper allowance as well from the Government. it hasn't been easy to say the least. But we have stuck it through and we've had a wonderful support from our local community, particularly from our customers. They have remained loyal to us. And our staff as well. They have come through and worked hard for us at the same time as well. And we're seeing some real benefits now from the fact that the JobKeeper helped us through and incentives from the Government as well have really given us a real optimistic view toward the fact that there is a real light at the end of the tunnel after vaccines come through. And then we will be able to see some positive trends toward a normal life again, hopefully. Yes, that's something I'm very optimistic about and feel like we're always heading in the right direction as well.
JOSH FRYDENBERG:
Thanks, Michael. Well, look, thank you, Michael for inviting us here today to your bakery. Another Australian success story. A small business success story, having graduated off JobKeeper. Zimt Bakery is one of 450,000 small businesses and larger businesses that have graduated off JobKeeper in the month of October compared to the month prior in September. There are some two million fewer Australian workers on JobKeeper in that month of October compared to the month prior. And Zimt had eight staff who were on JobKeeper who are no longer on JobKeeper as the customers are coming back. And this small business, like so many others across the country, tells a story of an Australian economy that is in recovery mode. An Australian economy that is bouncing back strongly.
That's what the Deloitte Report said today, that the Australian economy is outperforming expectations. Another example of key economic commentators affirming and confirming the trajectory of Australia's economic recovery. What we have seen in the November quarter was a 23 per cent increase in job vacancies. What we saw in the month of November were loan commitments for owner occupiers for the construction of new dwellings up by 7.2 per cent. And what we saw in the month of November were retail sales numbers up by 7.1 per cent. All these numbers point in one direction, that jobs are coming back, and that the economy is picking up as restrictions are eased and as we are getting to the other side of this once-in-a-century pandemic. This biggest economic shock that the Australian economy has had in a hundred years, effectively since the Great Depression.
We also know from economic data that came out recently that more than $7 billion has flowed through to the pockets of Australian families from our tax cuts in the last six months, and that some $200 billion has now accumulated on household balance sheets and business balance sheets. Money that was not there this time last year, as people due to the restrictions, couldn't go out and spend as much as they'd previously could, and also as people were cautious through the pandemic’s peak, where it meant they were saving more. But also the huge amount of economic support that has made its way from the Morrison Government to the pockets of Australian families and businesses. And this small business benefited not just from JobKeeper, but also from the Cashflow Boost, which has seen more than $30 billion go to the pockets of Australian businesses. Today's Deloitte Report also sees their forecasts for unemployment being lower than initially thought, and their forecasts for economic growth being higher than they initially thought. And what Deloitte has said today is that you wouldn't want to be in any other country in the world but Australia because we are as well positioned as any other nation for the economic recovery, and our success both on the health front and on the economic front has helped get us to this place and, as Michael said, he's had very loyal customers, but also had terrifically hard-working and loyal staff. And it is those staff that we have been supporting through the JobKeeper program as well as entrepreneurs, small businesses like Michael's, which is a family-owned business and he himself is a baker of 35 years' experience.
So we know the road ahead will still be tough. We know many Australians are doing it tough right now. We know the road ahead will be bumpy. There will be challenges. It will be difficult as we see globally, as many countries struggle with the health and the economic impacts of COVID-19. But we also know that Australia is so well positioned for that economic recovery, and the economic data that we have seen across the country is pointing in that direction. The Deloitte Report is pointing in that direction and the success of businesses like this bakery Zimt is pointing in that direction.
Are there any questions?
QUESTION:
Should Australia be inoculating elderly, frail citizens with the Pfizer jab considering there are reports out of Norway of 30 deaths?
JOSH FRYDENBERG:
Well we have seen reports out of Norway and our experts, our medical experts, are in touch with the regulators over there and obviously the information is being considered by the TGA ahead of their decisions. But, again, what it underlines is how important it is to put safety first. Not to have any short cuts, but to pursue the vaccine which we are very positive about, in a very considered way which puts the science and the evidence front and centre. That's why we haven't rushed it. That's why we haven't cut corners. That's why we are waiting for the TGA to complete their own processes. But we do have confidence in the Pfizer vaccine. We do have confidence in the AstraZeneca vaccine, and as you know, we have adopted a portfolio approach based on the best medical advice.
QUESTION:
Is the Government considering any additional schemes to encourage skilled migration to help boost the economy?
JOSH FRYDENBERG:
Well, again, we are seeing a big hit to migration and population numbers as a result of the COVID-19 pandemic. Australia has been a great immigration success story in terms of the migrants who have helped make our country more diverse and stronger over the years. But because of COVID-19, the ability to travel here with the borders being shut has been severely constrained. So, what we will do is follow the medical advice. In time, those borders will open and more migrants will come. But at all stages, we will consider and base our decisions based on the best possible medical advice.
QUESTION:
Just on the tennis, should the Victorian Government have allowed international players and coaches to quarantine in Melbourne considering there are still thousands of Australians stranded overseas?
JOSH FRYDENBERG:
Well, the Victorian Government, the Victorian health authorities, have put in place pre-testing, post-testing, quarantine procedures. Now, we support the systems that they have put in place and we have confidence that their health authorities will make the right decisions. But these are decisions that have been taken by the Victorian Government and by their health authorities. It is their responsibilities that they have taken for this event. We have confidence in the systems that they have put in place. When it comes to Australians who are stranded, whether it's Victorians who are wanting to get back to Australia - to their state or whether it's Australians abroad who are waiting for the flight to come home. We, as a Federal Government, are working to help more Australians get back home, and since March, when we put out the call for Australians to come back as quickly as possible, 446,000 Australians have come back. We have put in place 90 assisted flights, and we have also provided financial assistance for Australians to help meet those costs of coming back where they were unable to do so themselves. We have recently announced an additional 20 flights. Now when it comes to Victorians, who are stranded outside the boundaries of Victoria and desperate to get home, I know of examples where families have been separated and are waiting to get approvals for their permits, and the Victorian Government, no doubt, is trying to process them as quickly as possible, as they should.
QUESTION:
Just on the repatriation flights, which countries will those flights leave from and how is the Government deciding which countries to target?
JOSH FRYDENBERG:
Well again, those are decisions that will be worked through with the Foreign Affairs officials. But as the Acting Foreign Minister said this morning, there is a flight from India, a flight coming from Santiago and other destination points as they work through.
QUESTION:
Thanks, Treasurer. Just on (inaudible) Labor is making a bit of noise saying that the Government needs to make a decision about these announcements happening with James Shipton. Are you committed to releasing the report? When we will expect to know more on that front? And just secondly, are you concerned about the submarine project that's been (inaudible) and should we be rethinking our relationship with the French?
JOSH FRYDENBERG:
Well certainly the relationship with France is very strong and as you know, we have entered into contracts and that is helping to create jobs here in Australia, and particularly in South Australia where very significant works have been underway. When it comes to the Thom report, John, as you know, I'm in possession of that report. I'm working it through. I'm talking to Treasury and I will have more to say about that in due course, and the Labor Party can make as much noise as they want, but no-one seems to be listening.
QUESTION:
Thanks Treasurer. Super Retail Group is giving $1.7 million of JobKeeper back to the Government, following similar moves from Toyota. Are you welcoming these companies saying they don’t need taxpayer support and should other JobKeeper companies that have reported profits, paid dividends and bonuses do likewise?
JOSH FRYDENBERG:
Well the first thing to say is companies have used across the board, in all sectors, including particularly in the retail sector, JobKeeper, to help build a bridge to the other side of this crisis. As retail stores were closed because of health restrictions, this had a massive impact on the retail sector, and just last week I visited Cotton On, a great Australian success story, who had 5,500 of their workers on JobKeeper; and, globally, had 1300 stores, half of which were in Australia, and the Australian stores were all closed and only a handful of their global stores remained open. So, JobKeeper's been very, very important for the retail sector.
Now, eligible businesses for JobKeeper were entitled to receive it. That was under the law. And where they weren't entitled to receive it, and they did seek to receive it, then the ATO stepped in. But businesses that were eligible to receive it, have received it. Now, those businesses have no legal obligation to repay that JobKeeper amount. But, if they do so, then I'm not going to say no. That's additional money that will flow into the government coffers, and it's appreciated. But businesses don't have an obligation to pay back JobKeeper. That is a matter for those individual businesses, as they see fit.
QUESTION:
Still on JobKeeper. Deloitte’s Chris Richardson believes it’s less dangerous to end the JobKeeper Payment, given the positive growth in job figures. Will that mean that you will definitely end the JobKeeper Payment in March?
JOSH FRYDENBERG:
Well, I have made it very clear that JobKeeper is legislated to the end of March and it is our intention for the JobKeeper Program to end then. It's been a remarkably successful program. At its peak, we had 3.6 million Australian workers on JobKeeper and about a million Australian businesses, like Zimt behind us. But also, at the same time, the recovery has seen many businesses no longer need JobKeeper, as their customers have come back through the doors; and two million fewer Australians were on JobKeeper in the month of October, compared to the month prior, and 450,000 fewer Australian businesses were on JobKeeper.
As you know, we have been tapering down the amount of JobKeeper and we have put in place the two-tier program as well, depending on the number of hours that people have worked. But JobKeeper was always one of a series of government support measures that were in place to help the economy. And, even when JobKeeper ends, there are still billions of dollars that are making their way into the economy. For example, the tax cuts - we have seen $7 billion plus in the last six months. We will see, over the next nine months, more than a billion dollars a month on average go into families' pockets as a result of those tax cuts. We extended the HomeBuilder program, which has been a remarkable success as well. We have put in place the JobMaker Hiring Credit, which Treasury said will support hundreds of thousands of jobs and get younger people from the unemployment queue into work. We have brought forward billions of dollars of infrastructure spending, as well, to create jobs and to boost the productive capacity of the nation.
We have also acted in certain areas where it's been needed. For example, with $100 million plus program for travel agents, who have been hit hard, as the tourism sector more generally, as well as increased support for the aviation sector. So, I'm confident that the key pillars of our economic response are in place. I also point out that the Morrison Government, if you combine our economic and our health measures, has committed more than $260 billion. Now, more than $140 billion is already out the door. But more than $260 billion has been committed. That's more than double all the states and the territories combined in terms of their economic support. So, that's a huge investment in Australia's economic recovery, and with the promising results from the vaccine and with its accelerated rollout, which we are working to, together with our ability to see businesses, such as Zimt come back to work and their staff members come off JobKeeper, that is pointing in the right direction. That is showing that there is a light at the end of the tunnel for Australian families, for Australian businesses, from COVID-19, and its very severe economic impacts, the most significant since the Great Depression. Thank you very much.
QUESTION:
Why wasn’t an open and transparent tender conducted into a replacement for our attack helicopters before the Government spent $4.5 billion buying the Apaches?
JOSH FRYDENBERG:
Well, again, we have a range of programs across the defence industry and other sectors, and you can put that question to the Defence Minister and, again, we are focusing on getting the best possible equipment to support our soldiers in the field for the very big challenges that they face. Thank you.