DANICA DE GIORGIO:
Joining me now live is the Treasurer, Josh Frydenberg. Treasurer, good morning, thank you for joining me. I want to begin by asking you about vaccine mandates. They’ve been described as ‘cruel’ and ‘unnecessary’. That’s according to Gerard Rennick. Do you agree?
JOSH FRYDENBERG:
(audio missing) … and we’ve seen that in the reduction in the transmissibility of the virus and the number of people who are getting seriously ill. And I think it’s to all Australians’ credit that the vaccination rate double dose has tipped over 85 per cent, and in those jurisdiction where there have been extended lockdowns, like New South Wales, Victoria and the ACT, it’s been even higher. Our focus is obviously on opening up the economy and more people being vaccinated enables that to happen.
DANICA DE GIORGIO:
All right, but it’s the final sitting week of the year. Has there been any attempt to talk with the Liberals’ Gerard Rennick and Alex Antic on the matter?
JOSH FRYDENBERG:
Well, I talk to my colleagues all the time, and they recognise the importance of the economy opening up, jobs coming back, taxes being driven down lower, and that’s what our policies do. And we’ve got some good news today with Treasury analysis and ATO data showing that small businesses have been the beneficiaries of around $5 billion of tax relief this year and next. And that is driving more job creation across the economy with SMEs, small and medium sized businesses, creating some 600,000 jobs between April of last year and September of this year. So not only are we delivering lower tax, we’re delivering more jobs. That’s from a stronger economy and an economy where more people are getting vaccinated too.
DANICA DE GIORGIO:
Alright well let’s talk about tax. Can you commit to extending the low and middle income tax offset which is due to expire in June next year?
JOSH FRYDENBERG:
Well, we’ll obviously consider all our options in terms of, you know, broader tax reform. But what we have said is that we’re committed to delivering lower taxes, and that’s our track record. We have delivered more than $300 billion of income tax relief. So if somebody watching your program, a teacher or a nurse, is on $60,000 a year, they have been $6,780 better off as a result of the tax relief that our government has been providing. And we’ve also engaged in significant structural reform. We’re abolishing a whole tax bracket, the 37 cents in the dollar tax bracket. So 95 per cent of Australian taxpayers will pay a marginal rate of no more than 30 cents in the dollar. That’s a significant reform. The Labor Party didn’t support that reform. You had Jim Chalmers saying it was unfair, it was unreasonable, irresponsible. Yet Labor is now kicking and screaming saying maybe they will support it. Well, the Australian people can’t trust them, and just yesterday the Australian people saw Jim Chalmers refuse to rule out further tax increases, as they were proposing at the last election. So the leopard doesn’t change their spots. The Labor Party is committed to higher taxes; we’re delivering lower taxes.
DANICA DE GIORGIO:
Okay, but can you give a level of guarantee, though? You’re essentially leaving open the prospect of what is a tax increase, though, if the income tax offset expires.
JOSH FRYDENBERG:
No, we’re all about lower taxes. And that’s been our track record. The initiative you’re referring to, the low and middle income tax offset, we’ve had that in more recent budgets but we’ve also had significant structural reform, and that structural reform still has a stage 3, which has been legislated but is yet to be implemented fully. That’s all about delivering lower taxes. Whether you’re a small business or whether you’re a family, you’re getting lower taxes from the Morrison government.
DANICA DE GIORGIO:
So there won’t be a tax increase if it expires?
JOSH FRYDENBERG:
Well, again, our policies have been consistent across the board. Whether it’s the business investment incentives that have helped drive greater investment in machinery and equipment even during the first COVID recession in some 30 years, whether it’s the loss carry-back measure that we’ve introduced to help those businesses that encountered troubles and challenges during COVID, whether it’s the small business tax cut which has reduced the company tax rate from 30 cents in the dollar down to 25 cents in the dollar, which is the lowest the company tax rate has been for those businesses with a turnover of under $50 million in some 50 years, or whether it’s the income tax relief that we’ve provided. It’s all about doing one thing; rewarding effort, encouraging aspirations and allowing Australians to keep more of what they earn.
DANICA DE GIORGIO:
Alright we are running out of time, but just quickly, I just want to ask you about skilled migrants. When can we expect visa holders to be allowed into the country?
JOSH FRYDENBERG:
Well, we want to allow skilled migrants to come to our country as well as international students sooner than later. The Prime Minister will be standing up this morning and having more to say about the detail of that announcement. But it’s the natural next step following the announcements we’ve already made around Australians, citizens and permanent residents, coming back without the need for quarantine. We’ve now got the bubble with Singapore which is in effect, and the next step is with respect to skilled workers and with international students. Both skilled workers and international students play an essential role in our economy. International students are worth some $40 billion to our economy, and we know that there are workforce shortages out there and skilled workers can play a key part in meeting some of those shortages, whether it’s in hospitality, whether it’s in construction, whether it’s in mining, whether it’s in agriculture across the broader economy, including IT and professional services. So there is a need to bring back those skilled workers. It will make our economy stronger as we recover from COVID-19.
DANICA DE GIORGIO:
Treasurer, we have to leave it there. Thank you for joining me this morning.
JOSH FRYDENBERG:
My pleasure.