24 June 2020

Interview with Allison Langdon, The Today Show, Channel 9

Note

Subjects: Moody’s AAA credit rating; JobKeeper review; Economic response to coronavirus;

ALLISON LANGDON:

Treasurer, thanks for your time this morning.

JOSH FRYDENBERG:

Nice to be with you Ali.

ALLISON LANGDON:

We heard overnight that Australia has retained its AAA credit rating, one of only 10 countries to do so. Does that mean that there will be money come September when JobKeeper ends?

JOSH FRYDENBERG:

Well the announcement by the credit rating agency Moody's is a real vote of confidence in the Australian economy. They have appraised our effective and proactive policy making as well as acknowledging the resilience of the Australian economy. And Moody's announcement follow announcements by both Fitch and Standard & Poor’s, two other credit rating agencies who have affirmed Australia's AAA credit rating. So we continue to provide the economic support that is required for the economy at this very difficult time, some $260 billion, Ali, and 3.5 million workers are benefitting from JobKeeper as well as hundreds of thousands of other businesses are benefitting from our other programs. We'll continue to provide the support that is necessary and we are undertaking that review of JobKeeper as we speak.

ALLISON LANGDON:

We just heard from Karl's chat there that businesses need certainty and they need it now. What does happen in September? What industries will you continue to support?

JOSH FRYDENBERG:

Well the first thing to acknowledge is that some sectors will recover faster than others and, of course, the social distancing rules that are being eased around the country, obviously Victoria has been an exception in recent days, but that is seeing more people get back to work in the hospitality sector, in the retail sector and other sectors that have been hard hit. When it comes to the aviation sector and the tourism sector, as long as those international borders are closed, those sectors will continue to do it tough. We have announced a package of support for the construction industry, particularly for new home builds as well as substantial rebuilds. We are working on a package of support for the arts sector. We've made an announcement about the extension of the instant asset write-off which will support small businesses and continued economic activity, so we're looking at a host of options across the economy.

ALLISON LANGDON:

When are you going to give us the detail though, because, I mean, a regional tourism operator in Victoria, they can't wait another month to find out what, if any, help you're going to be offering?

JOSH FRYDENBERG:

Well the reality is the JobKeeper program is legislated to the end of September, and that is in place now and that is providing payments of some $1,500 a fortnight to 3.5 million workers, supporting nearly a million businesses. That's on top of the cash flow boost, Ali, which is a $30 billion program, assessed on the size of a particular business’s payroll, as well as extra $750 payments that are going out to households in July. So that program runs out to the end of September, the JobKeeper program, and we'll make an announcement about future supports on 23 July.

ALLISON LANGDON:

I mean, we're looking at what's happening in Victoria now, do you fear a second wave and are there contingency plans for that to extend JobKeeper?

JOSH FRYDENBERG:

Well what we've seen in Victoria highlights the fact that we're not through the coronavirus as yet. There is still a long way to go. It is a difficult time but I know that our health authorities, both national and at a state level, are working diligently to ensure that we can contain that spread of the virus and restrict the number of community transmissions. I mean, the reality is Australia has been ahead of the world in putting in place health measures that have helped flatten that curve. We went in March from having more than 20 per cent increases in cases a day to now having less than half a per cent. That has been substantial progress but what we have to continue to be is vigilant and patient, people need to download the app and follow the health advice.

ALLISON LANGDON:

Well I think people just need certainty at this time. We're looking forward to hearing that and also to see what happens with JobSeeker post-September. Treasurer, thanks for your time this morning, we appreciate it.

JOSH FRYDENBERG:

Good to be with you.