BEN FORDHAM:
Treasurer, good morning.
JOSH FRYDENBERG:
Good morning to you, Ben.
BEN FORDHAM:
Are you in Melbourne or Canberra? I need to know.
JOSH FRYDENBERG:
I’m in Canberra, but obviously feeling for my fellow Victorians through these pretty trying days.
BEN FORDHAM:
About a billion dollars a week this lockdown is going to cost us?
JOSH FRYDENBERG:
Well I said to the Parliament back in May that if we were to go back to those restrictions that were in place prior to the National Cabinet agreeing to ease them in three stages and it could cost the Victorian economy up to one billion dollars a week. Obviously the actions announced yesterday were pretty drastic, they were based on the medical advice, but we will see a substantial economic impact as a result of these restrictions coming back in.
BEN FORDHAM:
Will this mean that JobKeeper will have to be extended to people in Melbourne?
JOSH FRYDENBERG:
Well, both the Prime Minister and I have talked about extending income support to those who need it with each new phase and obviously we will announce the details of then on 23 July, but we do recognise that some sectors of the economy are doing it tougher than others, and in the case of Victoria, obviously they are going through a challenging period. But that six week lockdown announced by Premier Andrews will take that state through to the end of August and as you know, JobKeeper and JobSeeker has been legislated to the end of September.
BEN FORDHAM:
The banks are throwing a lifeline this morning to borrowers, saying mortgage holders who paused payments, will be able to extend the loan deferrals for up to four months. This will impact about half a million people with mortgages who had deferred those mortgages since March. This will be a big relief.
JOSH FRYDENBERG:
Yeah we welcome this announcement Ben. We have been working with the banks, working with the prudential regulator to ensure that those people who need that support continue to get it, and it’s not an automatic continued deferral for another four months. Customers need to go and talk to their banks. But the banks have made it very clear that their initial period of six-month loan deferrals will be extended for a period of four months. As you say that covers hundreds of thousands of customers and around $260 billion worth of loans, over 60 per cent of which are residential mortgages.
BEN FORDHAM:
We’re allowing people to access their super early because of the Coronavirus and some people grabbed it before July 1 and then after July 1 you were able to get another $10,000. We learned today that since July, $7.1 billion has been accessed, so that’s a billion dollars a day. Are you worried that people are dipping in too much?
JOSH FRYDENBERG:
This is an important announcement from the Government. Dare I say that it was supported by the Opposition and many across the superannuation industry because people recognise that families are going through times of hardship and those savings can now be accessed. Up to $10,000 last financial year, up to $10,000 this financial year, tax free, and it’s the people’s money and this money should be put to good use. We have some ABS payroll data, Ben, that shows over 55 per cent of the spending from that $10,000 that has been early accessed, has gone towards discretionary items that the people need, including paying their rent, and over 30 per cent has gone to paying loans. Obviously that puts people in a better financial position overall as well.
BEN FORDHAM:
Melbourne’s going to be an awful place to be for the next six weeks, I feel for your wife, you’re in Canberra.
JOSH FRYDENBERG:
Yeah, well this is the benefit of FaceTime and I’ve got a young family, but it’s not about me. It’s really about those many other Victorians who are going to do it really tough and I also know the front line personnel, particularly our medical professionals providing enormous support at a time of need. I have to say, The Morrison Government continues support to Victoria through the deployment of ADF personnel, other Commonwealth employees including medical professionals and we will do what is needed to support Victoria at this time. Because if Victoria is as successful as we hope in stemming the tide of new cases than that will be to Australia’s success and benefit as well.
BEN FORDHAM:
Very briefly, if you could give Daniel Andrews a score out of ten what would it be?
JOSH FRYDENBERG:
Look, I’m not in that game. What I’m focused on is working with the Victorian Government for the benefit of Victorians and Australians. This is not a time for State of Origin New South Wales VS Victoria. This is a time for our nation to be working collectively and effectively as a whole. That is what I hope will happen and that is what we will do everything to ensure happens.
BEN FORDHAM:
Always appreciate you talking to us, Treasurer. Thanks so much for your time.
JOSH FRYDENBERG:
Good to be with you and your listeners, Ben.