DAVID KOCH:
To talk us through all the finer details of the Government’s stimulus package, we’re joined now by Treasurer Josh Frydenberg. Treasurer, thanks for joining us.
JOSH FRYDENBERG:
Good morning Kochie.
DAVID KOCH:
This package - almost universally praised by the markets. It’s bigger than we expected, you’ve gone hard, you’ve gone early. Will this keep us out of a recession do you think?
JOSH FRYDENBERG:
Well it is certainly going to support the economy at this difficult time as you say Kochie, it’s a very substantial package - $17.6 billion - but it’s really frontloaded, $11 billion of which will go into the economy before June 30. Three out of every four dollars, Kochie, will be spent supporting businesses, because businesses employ people. We’re going to provide cashflow support, support for wage subsidies for apprentices. We’re going to encourage investment, allowing businesses to write-off purchases under $150,000 straight away and for larger sized purchases, get a 50 per cent accelerated depreciation. And we’re also providing those $750 cash payments to 6.5 million Australians. People who are on disability support or Newstart or a carer’s allowance or family tax benefit. A whole range of different benefits, these people will get the $750 and we know they have a propensity to spend and that will support the economy.
DAVID KOCH:
So they will get their $750 on March 31, so again, almost immediately. Bit of criticism from those people who are not on welfare and don’t get government benefits saying, ‘hey what’s in it for us? What’s there to get us to spend?’
JOSH FRYDENBERG:
Well certainly the support for businesses and employers is good news for the economy as a whole and what we tried to do here is to get the balance right by ensuring that all our measures are temporary, all our measures are targeted, and all our measures are proportionate to the challenge that we face. We took the best possible advice from Treasury, just like we’ve been taking the best possible advice from the chief medical officers, and this package of $17.6 billion, Kochie, is on top of the $2.4 billion worth of measures that we’re spending on ensuring our health system is as best prepared as possible.
DAVID KOCH:
Yep. Casual workers and the coronavirus, unions say your measures to help them access taxpayer-funded sick leave fall short because it’s just at the Newstart level. What’s your response to that?
JOSH FRYDENBERG:
Well of course we want people to stay in a job and if they’re on Newstart to get back into the workforce. But what we have announced that we’ll do, is to waive that one week waiting period so people can go onto that sickness allowance which is at the Newstart level and obviously hopefully get them back into the workforce as soon as possible after that. But these measures are designed to keep people in employment, to back businesses and that is very consistent with the Coalition’s philosophy.
DAVID KOCH:
The billion dollars for region and the communities fund, how will that be spent?
JOSH FRYDENBERG:
Well that money will go into backing local tourism efforts. That will be waiving various fees and charges on Commonwealth parks for example at the Great Barrier Reef Marine Park. We want to encourage people to get out and about here in Australia. We’re also going to use Austrade to help some of our exporters who may need to identify new markets. So there will be a range of measures. But some geographical parts of Australia have actually been hit harder than others and that’s what this fund is going to be directed at.
DAVID KOCH:
Okay, your stimulus package, as I said, impressive. Basically universally praised. Then we look across to the United States which is doing nothing. Donald Trump all he’s done is suspended travel from Europe to the United States. No stimulus package whatsoever. How disappointing is that? Because all your good work is being washed away by 10 per cent drop on the American share market overnight?
JOSH FRYDENBERG:
Well we are seeing huge volatility in equity markets and also challenging times in debt and credit markets as well Kochie, but there are a lot of factors at play. I think that most countries will undertake stimulus programs, just as Australia has undertaken. We’ve already seen Singapore, Malaysia, South Korea, most recently the United Kingdom…
DAVID KOCH:
Yeah but the biggest economy in the world has got to do it!
JOSH FRYDENBERG:
And we would welcome extra spending by those economies around the world because we understand that will support an economy at a very difficult time, where travel restrictions are in place, people are not going out as much as they otherwise would and we need to keep people in jobs because there’s going to be an other side of this virus and we want to bounce back stronger and be better than ever on the other side.
DAVID KOCH:
I know you’ve got to go to another interview, should the Grand Prix be cancelled this weekend?
JOSH FRYDENBERG:
Well as of yesterday the advice from the chief medical officers Kochie, were that you know, mass gatherings can still go ahead but I understand that the organisers are reassessing the Grand Prix and I’ll leave it to them and to the State Government for whatever announcements are made.
DAVID KOCH:
Okay, our health chief is saying it’s still okay to have these big events. Treasurer appreciate your time, thank you.
JOSH FRYDENBERG:
Good to be with you.