4 November 2021

Interview with David Koch, Sunrise, Channel 7

Note

Subjects: Cleo Smith; economic recovery; tax cuts

DAVID KOCH:

All right, we're going to talk to the Treasurer now. Josh Frydenberg is with us. Treasurer, you're playing second fiddle to a four‑year‑old this morning. Quite rightly. You're a dad. How good was that news yesterday?

JOSH FRYDENBERG:

When I came out of a building and was told actually by federal police that she had been found, I just had goosebumps up my arms and I think the country Kochie just had a massive collective sigh of relief yesterday because as the search had just gone on and on and on, people feared the worst. Our smiles were all a bit brighter yesterday, and my wife was telling me about how all her friends had been crying over the course of the day because everyone felt a personal connection to this, not just as a dad, but just as a member of the community. I'm sure there are a lot of grandparents out there and sisters and brothers and others who just felt the raw emotion at this most beautiful little girl who has been found so well done for profiling the incredible work of our police.

DAVID KOCH:

And after a year, many Australians have had, we needed a bit of joy and we just loved it. All right, let's get on. We've got to cover the economy today and the federal government. You're confident the economy will recover strongly over the summer. Tax cuts that came into effect in July have added more than $10 billion to the pay packets of millions of Aussie workers. That's according to your figures, on average from July to September, that's been an additional $879 per person. That extra spending money should help the budget bottom line, of course. You're expecting a strong recovery. How much of a role will these tax cuts play?

JOSH FRYDENBERG:

Well, they're a significant contributor to the overall economic health of our country. I mean, more than 11 million people getting more than $10 billion over that September quarter in what is the biggest tax cuts in more than 20 years is very significant. And, as you know, Kochie it's part of our broader plan. Our broader plan to cut a whole tax bracket out of the equation, the 37 cents in the dollar tax bracket. And as a result, we're going to see 95% of taxpayers pay a marginal rate of no more than 30 cents in the dollar.

DAVID KOCH:

Look, the economy needed stimulating. It's roared back. But you're left with a big budget deficit. You're left with big government debt. Surely taxes will have to rise to balance the books in the future.

JOSH FRYDENBERG:

Well, our view is it's all about growing the pie. And that is what tax cuts can help do, because by our own treasury analysis, these tax cuts can help create 60,000 new jobs across the economy. And the way you actually improve your budget bottom line is to get less people into welfare and more people into work. And when they're in work, they're paying tax. And when they're off welfare, they're not getting a government payment. And so that is how we saw pretty much an $80 billion improvement to the budget bottom line between what I announced last October and what was the final budget outcome for the last financial year. I'm pretty optimistic and confident about the overall health of the economy Kochie. We saw consumer confidence that was up this week, seven out of the last eight weeks. We know that job ads are more than 30% higher than going into the pandemic and our AAA credit rating has been maintained. I think your viewers can look forward to a strong Christmas and let's hope that we can put some of these lockdowns behind us.

DAVID KOCH:

Yep. Absolutely. Thank you Treasurer.