ALLISON LANGDON:
Thank you for your time this morning Treasurer.
JOSH FRYDENBERG:
Good morning, nice to be with you.
ALLISON LANGDON:
Just before we get into the detail of the stimulus package, I mean, as we’ve seen things have really escalated in the last 24 hours. You’ve been calling for calm, but it’s getting more difficult isn’t it?
JOSH FRYDENBERG:
Well of course people are feeling quite uncertain about how the global pandemic will evolve but what we do know is that Australia is better prepared than any other nation when it comes to both the health sides of things as well of in terms of the economy. We’re approaching this challenge from a position of economic strength. Yesterday’s major and substantial package of measures will support the economy at this difficult time and we know that there will be another side of this Coronavirus and we want be stronger and better when that occurs.
KARL STEFANOVIC:
My concern is, I mean are we missing something here in Australia? When you look at what’s going on in the United States, and in the last 12 hours the United States have banned gatherings of more than 500, or at least in New York at the very least, schools are closing in France, we’ve got an entire country locked down in Italy, there’s travel that’s been banned all of the place. Have we gone far enough yet?
JOSH FRYDENBERG:
Well we continue to take the best advice of our Chief Medical Officer, not only at the Commonwealth level but also at the State level, they talk every day. Right now their advice has not been to cancel mass gatherings but as you know their advice has been to put in place certain travel restrictions which we followed very quickly and we moved ahead of the rest of the world. But we do know that the Government is doing everything we can to protect the safety of our citizens and the $2.4 billion dollar package of health measures that we announced just a few days ago will boost the stock pile, will support extra hospital funding, will support extra training, as well as set up these respiratory centres so that people can get their checks as quickly as possible.
ALLISON LANGDON:
See I don’t understand why we’re not talking about banning mass gatherings when what we’re trying to do is stop the human-to-human spread.
JOSH FRYDENBERG:
Well again, you can only go on the best possible medical advice and they continue to assess the situation on a day by day basis. Their advice yesterday was not to ban those gatherings but of course, this crisis, this health crisis, continues to evolve.
ALLISON LANGDON:
Are you putting economic concerns before health?
JOSH FRYDENBERG:
Never.
KARL STEFANOVIC:
Okay there’s a situation, I think by the way, I think the stimulus package you announced yesterday is very good from my rudimental understanding of these things it looks very broad and it looks encompassing and look I guess we wait and see what happened in the next few months if it doesn’t come into effect and have the impact that you want. There’s one thing I want to talk to you about, the States have to come to the party at some point don’t they? We’ve seen what sort of impact, say for example reducing payroll tax could have. I mean that could have a significant impact, even just for a short while, even though some of the States are having a difficult time, especially Queensland economically. But surely they must come to the party, as it were, and make those changes now.
JOSH FRYDENBERG:
Well Karl, this is a team Australia moment. This is the time for Federal and State Governments to come together, for corporates big and small to come together, and of course for the community to go out and spend at their local store and continue to support economic activity. This is a time of real challenge, but we will get through this by working together. The Government announced at the Federal level, the Morrison Government, $17.6 billion dollars, it’s really front loaded, $11 billion dollars of which will go out the door before June 30 that are the cash payments to 6.5 million Australians, people who are on Newstart or Disability Support Pensions or a Carers Allowance or a Veteran’s Payment or family tax benefits, and then 3 out of every 4 dollars is being spent backing business because business employs people and we’re supporting business and we’re supporting those apprentices who are employed as well.
KARL STEFANOVIC:
Treasurer it’s hard to go out and spend, you’re saying lets go out and spend money here, that’s the whole desired impact of this. It’s hard to go out and spend when the next message might be ‘don’t gather, don’t go out and spend time with businesses’, I mean that’s a really difficult message to try and work your way through.
JOSH FRYDENBERG:
Well I think, you know, most Australians are getting about their daily lives as usual, but there is a degree of uncertainty. But Karl you would expect us, and we are, taking the best possible medical advice just like we’re taking the best possible economic advice from Treasury officials. This is a time for Australia to come together, the States will do their part, the Commonwealth has done it’s part, but we continue to monitor this on a day-by-day basis.
ALLISON LANGDON:
I mean you’re desperately trying to stop a downturn in the second quarter, will you consider another stimulus package if this one doesn’t work?
JOSH FRYDENBERG:
Well we’re getting extra, real-time information from the banks, from the Australian Bureau of Statistics, to actually understand the full impact of these measures will be having across the economy. We will have the Budget in just eight weeks’ time and we haven’t put any limitations on what we will do then or indeed after that. What we will do always is put the interests of Australians first whether that’s their economic interest or whether that’s their safety.
KARL STEFANOVIC:
Okay and just back to payroll, can I get your response to that, should the State Governments come to the party and reduce payroll tax even for a small period of time, say four months?
JOSH FRYDENBERG:
Well it’s definitely an option for them and the Queensland Government has already moved with some deferral and I’m sure other State Governments are looking at that. We would welcome any movements by States to support their local economies with measures that back business like we are, that back households, that give some temporary relief because obviously this is a challenging time.
KARL STEFANOVIC:
What difference would it make?
JOSH FRYDENBERG:
It all helps, and we want the Australian economy to bounce back stronger than ever, and we approach this from a position of strength but we are certainly not complacent and that’s why yesterday’s announcement was so broad based, all the measures were temporary, all the measures were targeted, and all the measures were proportionate to the challenge.
ALLISON LANGDON:
Treasurer so much of the focus has been on you and the Federal Governments response to this, do you feel that the States aren’t doing enough, that they do need to step up?
JOSH FRYDENBERG:
I’ve actually had good conversations with my state counterparts, I know they take this issue seriously but I’m sure lots of people are waiting to see what their next move is.
KARL STEFANOVIC:
Okay, Treasurer really good to talk to you. Have yourself a good weekend. Will you be going to any sporting events over the weekend?
JOSH FRYDENBERG:
Not this weekend but next weekend, or next week, I’m looking forward to going to the Carlton and Richmond game.
KARL STEFANOVIC:
Okay, I mean we’re still worried about our kids, I mean even our kids going to sporting games over this weekend, I mean, they’re big concerns for families.
JOSH FRYDENBERG:
Well Karl we’ve got to take the best possible medical advice and right now they say go along to those events, and as long as they’re saying that I’ll do it.
KARL STEFANOVIC:
Ok good on you Josh, thank you.
JOSH FRYDENBERG:
Thank you.