2 July 2020

Interview with David Koch, Sunrise, Channel 7

Note

Subjects: Small business tax cuts; JobKeeper review; Victoria; superannuation; 

DAVID KOCH:

Treasurer, good morning to you. Tax cuts really welcome, though, being brought forward by five years. The problem is not many people will probably make a profit this year.  

JOSH FRYDENBERG:

Well, 3.5 million small and medium sized businesses will benefit, Kochie, as you say with a turnover of less than $50 million. This is good news and it will go down a further cent next year. What we have seen is the company tax rate come down from 30 cents in the dollar, down to 26 cents in the dollar and next year down to 25 cents in the dollar. It is part of a broader push by the Coalition to decrease company tax as well as to decrease income tax.

DAVID KOCH:

Great over the long-term. In the short-term for most businesses, it is all about JobKeeper. You are going to review at the end of June, are there going to be any changes between now and September?

JOSH FRYDENBERG:

Again, we are going to announce the outcomes of that review on 23 July. But it is fair to say that JobKeeper has been working and will continue to support in every way we can the Australian people. We recognise that a lot of businesses are still doing it tough. Families are doing it tough. We have seen with the outbreak in Victoria that we haven't suppressed the virus forever. And there are challenges ahead. We will continue to support those sectors that need it.

DAVID KOCH:

Good. Yesterday, the Tax Office website crashed with people trying to get early access to their superannuation, they could get access to another $10,000 from July 1. Do you have any concern about the level of demand for that?

JOSH FRYDENBERG:

Look, it is in accordance with what Treasury have been forecasting and we know people want access to their own money, particularly at times of hardship. We are providing that money tax-free which is of course enormous benefit to those who are accessing their super. And we also know that under the existing superannuation system, you can access your money in the event of hardship. So that’s an extension of the existing scheme, it has been supported broadly and of course, people are showing that they need that money.

DAVID KOCH:

Treasurer, appreciate your time.

JOSH FRYDENBERG:

Good to be with you, Kochie.