18 June 2021

Interview with David Koch, Sunrise, Channel 7

Note

Subjects: Your Future, Your Super Bill; Labour Force numbers; hotspots; vaccine rollout;

DAVID KOCH:

Joining me now, Treasurer Josh Frydenberg. Treasurer a lot to get through today. The economy, superannuation...

JOSH FRYDENBERG:

Good morning.

DAVID KOCH:

Let’s start with the big news story is the change to the vaccine strategy, will this mean that AstraZeneca is being phased out? 

JOSH FRYDENBERG:

No, it just means that the AstraZeneca vaccine will be available to those 60 and over, and the Pfizer vaccine to those younger than that. This is the advice from our health experts, and right through this whole pandemic Kochie, the Morrison Government has taken the advice from the health experts and that has served us well. This advice is pretty consistent with a number of other countries, although I do point out in the United Kingdom the AstraZeneca jab is available to those 40 and over, and in Germany it's available to those 18 and over so different countries have adopted slightly different approaches. 

DAVID KOCH:

Another breakout in New South Wales, a really frustrating one because of the cause of it. When will National Cabinet get all the states on board with consistent restriction advice because this is affecting the economy, with states making different decisions, can't we get a national one through?

JOSH FRYDENBERG:

Well those Chief Medical Officers are meeting daily together, coordinating their advice, comparing notes and experiences, and sharing what has been the things that have worked well and maybe the things that haven't worked as well. And so there is that consultation and coordination and we've been very successful Kochie. Let's not take anything away from our health professionals…

DAVID KOCH:

Yes, but each state takes a different tac.

JOSH FRYDENBERG:

Well again, there is the state sovereignty in respect to the various restrictions…

DAVID KOCH:

Not in this.

JOSH FRYDENBERG:

…that they put in place. No, I agree with you, I agree there needs to be always as consistent approach as possible. But they do coordinate, they do compare notes, they do work together.

DAVID KOCH:

Maybe you’ve got to intervene there. Hey, let’s get on to superannuation now. The Your Future Your Super bill passed in the Senate, really significant reforms and so your superfund will be stapled to you, the individual, whenever you change jobs, your superfund goes with you, that's the big thing isn’t it, to stop you having multiple ones and paying higher fees.

JOSH FRYDENBERG:

Well these super reforms are the most significant since compulsory super came in in 1992. We got them through the Parliament in the face of fierce opposition from our political opponents, and they'll save consumers more than $17 billion.

DAVID KOCH:

Okay.

JOSH FRYDENBERG:

And you're right about the stapling. What that means is that we won't have unintended, multiple accounts.

DAVID KOCH:

Right.

JOSH FRYDENBERG:

Because what happens when you move jobs, you get a new superfund, the low balances on those superfunds gets eaten away by fees and the charges and so it’s going to go with you.

DAVID KOCH:

Quickly, can you unstaple it if you’re in a dud fund and staple yourself to a different one?

JOSH FRYDENBERG:

You can move to a new fund.

DAVID KOCH:

Right.

JOSH FRYDENBERG:

You can even have more than one fund if that's what you choose.

DAVID KOCH:

Right.

JOSH FRYDENBERG:

The choice is still there, but what we've found, and what the Productivity Commission recommended is that many people have unnecessary, unwanted, unneeded second, third or fourth funds, because they have moved between jobs, and that’s cost them in the long term for their retirement.

DAVID KOCH:

Okay, a month or two ago, everyone, all the doom and gloomers saying ‘oh jobs are going to be destroyed when JobKeeper comes off, the job market will fall off a cliff.’ Absolutely the opposite has happened. Massive increase in job creation last month. Unemployment down to 5.1 per cent. That’s lower than before we went into COVID.

JOSH FRYDENBERG:

Well these were stunning results for Australia's labour market, and really a reflection of the resilience of the Australian economy. The unemployment rate falling to 5.1 per cent, 115,000 new jobs being created over the month, 85 per cent of those jobs being full time, 60 per cent of those jobs going to women. What we've seen since the end of JobKeeper is 84,000 new jobs being created in net terms. This is really a positive development…

DAVID KOCH:

Stunning.

JOSH FRYDENBERG:

…and a sign that the economy is moving in the right direction, and as you say Kochie, many people, including our political opponents said the sky will fall in when JobKeeper ended, and it hasn't. In fact, we have proven them wrong yet again.

DAVID KOCH:

It was a great result, I know you’ve got to go, thanks for joining us.

JOSH FRYDENBERG:

My pleasure.