BEN FORDHAM:
Well, the lockdown capital is living up to its reputation. Millions of Victorians will again be trapped in their homes with the lockdown extended by another week. When will it actually end? Well, who knows? We know this though, Victoria loves a lockdown. They’ve been locked down for 140 days when you add them all up. The other states on average, only six days. And when it comes to students missing school, Victorian students have missed an average of 21 weeks, New South Wales students just 29 days. You don’t need to be a Federal Treasurer to know there’s something wrong with those numbers. The Federal Treasurer Josh Frydenberg joins us from Parliament House. Treasurer, good morning to you.
JOSH FRYDENBERG:
Good morning, and let me just say, Ben, Victorians don’t love a lockdown. Unfortunately that’s what they’ve been subjected to, and its creating a lot of pain.
BEN FORDHAM:
Why can the rest of Australia deal with it without locking down while in Victoria it’s lockdown, lockdown, lockdown, lockdown?
JOSH FRYDENBERG:
Well, as you know, these are decisions that are taken at a state government level, and you in New South Wales and your listeners have been brilliantly led by Gladys Berejiklian for the point that they haven’t gone through these state wide lockdowns like they have in Victoria. And this is the fourth lockdown, and those numbers you read out are pretty startling, confronting and remarkable figures. That since that first nationwide lockdown, Victorians have been subject to 140 days of lockdown whereas the average across other states and territories being just six days. It’s the same virus, it’s the same hotel quarantine, it’s the same QR codes and technology that is available across state boundaries and Victorians are legitimately asking the question, “why us again?”
BEN FORDHAM:
JobKeeper ‑ you’re under pressure to bring it back for Victorians. When it was a one‑week lockdown I thought, well, really, do we need a special JobKeeper just for Victoria. But now that it’s been extended you do have a number of economists and clearly a lot of people in Victoria saying, “You need to help us out.” Are you going to?
JOSH FRYDENBERG:
Well, we took a firm decision about that first week, Ben, because we recognised that the states, and it’s not just Victoria, it’s any state that could go through a similar short‑term lockdown, that they would have a capacity to meet the need that is out there. And we saw lockdowns in both Queensland and in Western Australia after JobKeeper had ended, and they didn’t request additional support, and additional support wasn’t forthcoming from the Federal Government.
BEN FORDHAM:
So is that a no to Victoria?
JOSH FRYDENBERG:
No. What it means is that this is a different situation now that the lockdown has been extended for two weeks. I spoke to my counterpart in Victoria last night, the Prime Minister spoke to the Acting Premier in Victoria, and we are considering our options and we’ll have more to say about that shortly.
BEN FORDHAM:
Okay. I know that you’re very happy with recent economic figures. Australia’s just one of five countries where the economy has grown larger than it was before Coronavirus. I’m looking ahead here a little bit to the stage 3 tax cuts which you have certainly spoken about in the past, and because of the pandemic I think there’s probably a question mark over them. Labor won’t make up its mind on the stage 3 tax cuts, whether to leave them alone or pull them away based on their promises heading into the next election. Have you committed to the stage 3 tax cuts going ahead?
JOSH FRYDENBERG:
Yes, we have, and not just us who have committed, the Parliament has committed. They’ve been legislated. So Labor would have to repeal the existing tax cuts that have been put in place. As you know in last year’s Budget, Ben, we brought forward stage 2 by a couple of years. We extended the low and middle income tax offset. We did so again in this year’s Budget. We’ve been the party of lower taxes and we spoke many times in the lead‑up to the last election where the Australian people were given a very clear choice, a choice between a Labor Party which was proposing $387 billion of higher taxes on your housing, on your retirement savings, on your super, on your income, on your small business, whereas we were promoting lower taxes. We won the election. We successfully legislated those tax cuts. Anthony Albanese said only recently that at budget time he would say what Labor’s position have been. Richard Marles, their Deputy Leader, says that they will not stand between a person and a tax cut, yet Jim Chalmers, their Shadow Treasurer, consistently says he doesn’t like these tax cuts and he doesn’t think that, you know, they deserve support. So let’s wait and see exactly what they do.
BEN FORDHAM:
All right, Albo’s got to make a call on that at some stage. Now we’ve also spoken many times about fringe benefits tax and the fact that if we took it away it would encourage people, why are you laughing?
JOSH FRYDENBERG:
Well, because you want me to take away another tax –
BEN FORDHAM:
I want you to encourage people to go out and spend money in restaurants and cafes.
JOSH FRYDENBERG:
So do I. So do I…
BEN FORDHAM:
And it will end up being Dominic Perrottet, the New South Wales Treasurer, he’s got a budget coming up, maybe he’ll have to come up with some kind of temporary measure to take the strain off people because you’re not willing to hit this ball. Is it because of the $4 billion it drags in? You’re addicted to it?
JOSH FRYDENBERG:
Well, firstly, we’ve been cutting taxes. Whether it’s for small business or –
BEN FORDHAM:
I know. Let’s talk about FBT.
JOSH FRYDENBERG:
Well, at the same time, I’ve got to maintain a balance across our tax system. We’ve cut taxes for companies. We’ve announced massive investment allowances, which were shown in the National Accounts yesterday‑
BEN FORDHAM:
Yeah, I know. But, Treasurer, you know that this would be a massive boost to those industries that have been struggling for the last 18 months, and you’re not willing to go there. Is it because the money that it brings in is just too big for you? Is that it?
JOSH FRYDENBERG:
Well, again, I’ve got to balance the needs to generate sufficient revenue to meet the expenses and the expenditure that we’re undertaking. I’ve also got to take decisions that, you know, are consistent with our values and our principles and will strengthen the economy, like reducing income tax and business taxes. At this point I’ve decided not to change the FBT. I note that the State Government has announced vouchers for businesses and people across the city to go and spend at our restaurants, at our hotels –
BEN FORDHAM:
Yeah, $25 at a time. I mean…
JOSH FRYDENBERG:
Well, whatever they can do…
BEN FORDHAM:
It’s not going to set the world on fire, is it?
JOSH FRYDENBERG:
Whatever they can do we welcome. But if you want to go out for a long, you know, clam chowder and a glass of wine you’ll have to dig in your pocket, and that will help create jobs.
BEN FORDHAM:
Okay. All right. We’ll see how that goes down. Quick question just about bank closures.
JOSH FRYDENBERG:
Yes.
BEN FORDHAM:
We have been absolutely inundated with people saying, “We are over this.” There have been 300 bank branches close since coronavirus arrived. ANZ 131; Westpac 53; NAB 45; CommBank 32. One of your colleagues in the National Party Andrew Gee now says we should have minimum service requirements for the big banks. Do you agree?
JOSH FRYDENBERG:
Well, I don’t think we should be imposing a strict rule on every bank because they will have, you know, different reasons for decisions that they take. But I think Andrew makes a decent point, a relevant point, that in regional areas the banks are particularly important. Not everyone will have access to digital services. But generally we are seeing more and more of the banking services being provided online, and that’s been also good news for consumers. So it’s about getting the balance right. In regional areas there are particular needs, and I’m glad it’s being highlighted and I hope the banks take that into account.
BEN FORDHAM:
Okay. I don’t know whether you’ll be heading back to Melbourne, you’ll probably hang around Canberra for a while, and we can’t blame you. Thank you so much for joining us.
JOSH FRYDENBERG:
Always good to be with you.