ALLISON LANGDON:
Treasurer good morning to you.
JOSH FRYDENBERG:
Nice to be with you Ali.
ALLISON LANGDON:
So this $60 billion blunder, are there any other accounting issues we should be aware of?
JOSH FRYDENBERG:
Well look for your viewers to clearly understand what has occurred here, when Treasury did the forecast for the number of people who would be on the JobKeeper program, estimating some 6.5 million workers would and that would cost $130 billion, this was done at the height of the global pandemic here in Australia. We saw the number of cases increasing by more than 20 per cent a day in the lead up to the JobKeeper announcement. As you know we have had great success in flattening the curve and reducing the number of cases here and then starting to ease restrictions. That health miracle has had a real economic benefit with less people being on the JobKeeper payment than initially thought. It’s still going to support around 3.5 million workers, it’s still going to cost around $70 billion dollars, it will still be the largest such program Australia has ever seen. But it is good news for the taxpayer and for your viewers that less money will now need to be raised by increasing Australia’s debt as a result of this revised forecast.
ALLISON LANGDON:
I mean, I think we are all very happy that you’ve underspent rather than overspent by $60 billion, but it is still an embarrassing blunder. Why is the Prime Minister taking the wrap? As Treasurer, isn’t this one on you?
JOSH FRYDENBERG:
I take responsibility for this, and I’m accountable through the Parliament, but the whole Government is working to keep as many people in a job and we recognise that this is a critical program; JobKeeper. Together with JobSeeker as you said in the introduction, which is supporting around 1.6 million workers, we’ve got 5.1 million workers being supported by JobKeeper and JobSeeker. The scale of the Government’s economic response has been unprecedented. So of course, it’s regrettable that these forecasts have had to be revised but importantly, no money was paid out by the ATO, either an underpayment of an overpayment, as a result of the incorrect data that they had.
ALLISON LANGDON:
Okay so we’ve now got this $60 billion that hasn’t been spent, what happens to that money now?
JOSH FRYDENBERG:
Well we don’t have to go and borrow that money, and that’s the key point. For future generations, there will be less borrowings to pay back and as you know the Labor party is out there calling for us to borrow more, to spend more and of course to tax more and when the program was costed at $130 billion they wanted us to spend more, at $70 billion they want us to spend more, that’s their form. What we are focused on is ensuring that people get the support that they need, that there will be a review of the program in the month of June, but we’re not planning any wholesale changes to the eligibility criteria, bearing in mind that already part-time, full-time, soul traders, casuals who have been with their employer for twelve months or more, or those working in the not-for-profit sector, are significantly benefiting from the JobKeeker payment.
ALLISON LANGDON:
So there are no plans to change the scheme?
JOSH FRYDENBERG:
We are doing a review and obviously we’ll see how it’s being implemented as well as seeing how the economic conditions are at the time. There are no plans for wholesale changes to the eligibility criteria. We do recognise though Ali, there are some sectors like tourism that are going to do it tough for quite a while because the international borders will remain closed for quite a while. Now we have already provided support to those sectors, but we will continue to look at other options that we may have to continue that support. But the best way to get people back in a job is through the easing of the restrictions. National Cabinet, as you know, agreed to three stages of lifting those restrictions, and it’s estimated that some 850,000 people will be back in a job as a result of those restrictions being lifted, that’s going to be great news for the economy.
ALLISON LANGDON:
Well Tourism, I know that housing too is another one which is hurting, which they’re hoping to get a lifeline beyond September. Treasurer thank you so much for your time this morning, we appreciate it.
JOSH FRYDENBERG:
Always good to be with you.