DAVID KOCH:
Joining us now, Federal Treasurer Josh Frydenberg. Treasurer, it’s the third‑largest fall on record, but it was a pretty good figure, wasn’t it, considering what was going on?
JOSH FRYDENBERG:
Well, Kochie, as you know, during the September quarter, 13 million of our fellow Australians were in lockdown. The Sydney metropolitan area was in lockdown for that entire quarter and, as you say, the result was better than what the market was expecting, but, importantly, Australia has had a stronger economic recovery since the start of this pandemic than all but two major advanced economies. A stronger recovery than Germany, Italy, Japan, Canada, the United Kingdom, and things have really started to turn around. We’ve seen 350,000 jobs come back since the start of September. We’ve seen strong retail sales, as you say, with Black Friday, more than $5 billion being spent, and businesses investment intentions in the non‑mining sector are the strongest on record. So, I think it’s looking very promising for the new year as far as the economy is concerned.
DAVID KOCH:
And the savings of Australian household have had a massive leap. That’s sort of a combination of JobKeeper supporting Australian households, isn’t it, and us not being able to spend it anywhere. So, that’s going to be the springboard for the economic growth in the next quarter? We’re flush with cash?
JOSH FRYDENBERG:
Well, you’re absolutely right about this dramatic spike in the savings ratio. Normally, it’s around five per cent. Yesterday it was 19.8 per cent, and that money will be eventually spent and the savings ratio will come down as restrictions ease and people go about their normal lives. Households have accumulated $220 billion on their balance sheets. That’s an enormous amount of money, and that money will be spent on tourism. It will be spent on accommodation. It will obviously be spent on hospitality. It will be spent on upgrading your house or indeed other various expenses. And that will help generate more economic activity and more economic activity, Kochie, means more jobs.
DAVID KOCH:
A concern with the overheating property market, but recent figures are starting to show property markets starting to cool in the big capital cities, isn’t it? That’s a good sign as well?
JOSH FRYDENBERG:
Well, property prices have gone up largely because interest rates are at historic lows and Australia is not unique in this respect. I was talking to my American counterpart Janet Yellen the other day and she was talking about the same phenomenon in the US and we’ve seen in Canada and in New Zealand, also, housing prices increase, but the good news is that in this housing cycle we’ve seen more owner–occupiers as opposed to investors come into the market, and particularly first home buyers. Over the last year, Kochie, we’ve seen 172,000 first home buyers come into the market. The 10‑year average is around 100,000 so that’s really good news for first home buyers too.
DAVID KOCH:
That is great. Just finally, how are you doing? Recovering from your injury from household chores? Are you on the mend?
JOSH FRYDENBERG:
Well, I’ve still got splint there, you know, which prevents me opening bottles safely in the Parliament. But I –
DAVID KOCH:
So, you were making the bed. How can you bugger your finger up by making your bed?
JOSH FRYDENBERG:
Oh, look, you don’t want to get into it, but I was trying to pull the sheets over the back corner and then my wife heard some expletives and the rest is history and now everyone is making fun of me. But it goes with manual labour, doesn’t it? So there you go.
DAVID KOCH:
Those fitted sheets will get you all the time. Alright Treasurer, good to see you on the mend, and so is the economy. Thanks for joining us.
JOSH FRYDENBERG:
All the best.