KARL STEFANOVIC:
Treasurer, good morning to you. Nice to see you.
JOSH FRYDENBERG:
Good morning, and Lani’s 100 bucks is tax free I can tell you!
KARL STEFANOVIC:
Always thinking Treasurer. Hey, listen, we've been featuring all day, the story about businesses, and they're crying out, in fact, all week, businesses crying out for some leadership on no jab, no entry, some clarity around the legalities, can you provide that for them this morning?
JOSH FRYDENBERG:
Well, they control their premises, if they want to stop someone coming in based on the fact that they're not vaccinated, then that is their right to do so, not only are they protecting their customers Karl, but they're also, you know, making for a safer workplace for their staff. So we've been very consistent on that. If there is a need for further guidance, that would be a matter for a state government under their own occupational health and safety and public health orders. But it is very clear that businesses can determine who comes in and out of their own premises.
ALLISON LANGDON:
That though is the very problem right there, that you're leaving this up to businesses. And what they're saying is they don't want that you've got National Cabinet. This is an issue that's going to be impacting every state and territory. So we need leadership from the very, very top. So I mean, you've got businesses saying, well hang on, if we say we only accept people who are vaccinated, we could get sued, or the other way we could get sued, that they are crying out for you to actually say, these are the rules this what needs to be followed.
JOSH FRYDENBERG:
Well, different businesses, to be honest, will take different approaches, some will only want vaccinated customers to come through the door, others will not. And that will be a matter for them. What we can do is facilitate through the technology and the various apps that the state governments have put in place, the ability to understand whether someone has been vaccinated or not so integrated into those apps, the vaccination certificate, and that's something that we're working with the state governments on. That will be I think, a helpful step forward. But as for, you know, the legal ability of these businesses, I understand it's pretty clear that they can determine who comes in and out of their own premises.
KARL STEFANOVIC:
But the point is that small businesses don't need it. They don't need the hassle. They don't need to pay for legal stuff when it's been when it is being rolled out as part of restrictions. The PM says we don't mandate vaccinations…
JOSH FRYDENBERG:
That’s true.
KARL STEFANOVIC:
…but you say aged care and other health care should be compulsory, but nothing else and the Fair Work Ombudsman says small businesses, go see a lawyer, isn’t it just easier for you to step in here provide some legal framework and uncertainty for businesses but also more importantly, indemnity.
JOSH FRYDENBERG:
Well, let's be very clear. We are not mandating the vaccination programme. We've always made it very clear, it's voluntary. But on that basis, Karl, we've encouraged people to take it up. And the great news today in New South Wales, is that you're going to see 80 per cent first dose of vaccinations, we have provided guidance on the Safe Work Australia website, we have provided guidance through the Fair Work Ombudsman and that gives guidance, depending on the nature of that particular business so…
KARL STEFANOVIC:
Will a passport be mandatory?
JOSH FRYDENBERG:
Well, in terms of coming in and out of the country. That is what we talked about at….
KARL STEFANOVIC:
No vaccine passports in restaurants.
JOSH FRYDENBERG:
Well, again, no, that will be absolutely voluntary, depending on what an individual wants to download, onto their particular app, we will provide the technology that they can have a vaccination certificate onto that app. And that work is going on right now, particularly with New South Wales and the Victorian Governments who are ahead of the game. But with respect to the broader programme, it is a voluntary process, not a map.
ALLISON LANGDON:
Do you understand the pile on that you're exposing these businesses to who might make the decision they only want vaccinated people in their business to keep everyone safe?
JOSH FRYDENBERG:
Well, I certainly understand that as a priority, but as I understand too that is their ability to do that. If there's some further clarifications, you know, I'm happy to raise it with my counterpart in New South Wales, about what further steps they're taking under their own legal framework.
KARL STEFANOVIC:
Honestly, Treasurer, I reckon that's a good idea because a lot of small businesses contact our programme, and we've featured a lot on our programme.
JOSH FRYDENBERG:
Sure.
KARL STEFANOVIC:
And what they're worried about is at the front door, on any given night, or any given day, they're going to deny someone coming in, there's going to be some kind of altercation, someone's going to end up in the courts, and they're going to have to foot the bill for something that could have been provided in terms of a legal, much more of a strong legal framework from the get go or a public health order. If you're open to that, will you be discussing it?
JOSH FRYDENBERG:
Well, again, those public health orders are the domain of the states.
KARL STEFANOVIC:
Yes.
JOSH FRYDENBERG:
Let's be very clear what's federal and what state. We can provide the technology to access a vaccination certificate on a state-based app. With respect to the public health orders, Karl, they are matters for the states. But further to this discussion, I will mention to my colleague, Dom Perrottet.
ALLISON LANGDON:
Hey, I just want to talk to you about this new report by the International Economic Advisory Group and the OECD. Of course, your mate, former Finance Minister Mathias Coleman, you should probably pick up the phone and call him. He says that the burden, you should broaden and increase the GST in Australia got any appetite for that ahead of an election?
JOSH FRYDENBERG:
No. that’s a pretty clear answer. No plans to increase the GST. But I notice Ally, the beneficiaries of the GST are actually the states every single dollar goes to them. And they can't even agree that they want changes to the GST. But the Report is a very important one. And it should give your viewers confidence that the fundamentals of the Australian economy a sound and that the economy itself is strong, because they actually say that our fiscal response, our economic response to COVID-19 has been swift. It's been appropriate. And it's been well coordinated. They are the reports own words. And there are challenges, of course, because we're dealing with the Delta variant and the impact that that is having. But the good news is there is light at the end of the tunnel, and that's why reaching those vaccination rates sooner than later is critical.
KARL STEFANOVIC:
Look, Dominic Perrottet Dominic the New South Wales Treasurer says that Mark McGowan. The WA Premier is protecting his $5 billion surplus like Gollum, like ‘my precious.’ I mean, the reality is that they've got to be part of the overall sharing of the GST. But are you concerned about the next phase, given New South Wales given Victoria, given the next couple of months how bleak it looks? It does, it just doesn't look good. And what impact is that going to have on the bottom line?
JOSH FRYDENBERG:
Well, the first thing to say is we put in place those changes to the GST because what was happening in WA was patently unfair. I mean, they were getting 30 cents in the dollar. And we know that, you know, the resources industry is very cyclical. Sometimes, like right now you're getting higher iron ore prices, other times, you're getting lower ones. And it's only fair that we have a more equitable distribution of the GST. With respect, though, to the overall economy. Phil Lowe, the Governor of the Reserve Bank, gave a speech yesterday when he said that the recovery as a result of this delta area may have been delayed, but it hasn't been derailed. And I think that is an appropriate summation of it, we will see in the September quarter the economy contract. But we also know from our previous response to the pandemic, and what we went through last year, it bounces back pretty quickly, that people have money on their household balance sheets, businesses have money on their business balance sheets. And that quickly leads to more spending, as the restrictions are eased, so our real focus is to get those vaccination targets so that people can get about their lives in the COVID safe way, that kids can go back to school, that businesses can reopen, that we can travel interstate. That's what I'm focused on. And I'm confident that jobs will come back after that occurs.
KARL STEFANOVIC:
Treasurer, the problem is with states like Queensland, and they've fallen behind…
JOSH FRYDENBERG:
They have.
KARL STEFANOVIC:
And I think that's a bit embarrassing. I don't know what you're going to do to encourage them. But until they get to 70, or 80 per cent, it is going to be at least 80 per cent let's face it, they're going to fall behind and the rest of the country, how are you going to possibly encourage them to catch up?
JOSH FRYDENBERG:
Well, it's in their interest to stick to the plan Karl because if you're a Movie World, or a Sea World or a worker of areas in Queensland, in their many wonderful tourism businesses, from Cairns to the Gold Coast to the Sunshine Coast, you can't wait for those borders to open. And every day they don't, then your staff are going to have less work to do and there'll be less jobs. So actually, it's in Queensland's economic interests, that they open up in accordance with the plan, and it is inevitable that they will get outbreaks in their state. And let's hope they don't get lockdowns in like New South Wales and Victoria. So they shouldn't delay the inevitable, namely, living safely with COVID. That should be their focus. it's in their interest. Obviously, the vaccination rates in WA and in Queensland are below where they are in the other states. So let's hope that they can pick up the game.
ALLISON LANGDON:
All right, good stuff Treasurer. I mean, I don't think anyone's sticking to that National Plan…
JOSH FRYDENBERG:
I am.
ALLISON LANGDON:
But we can hope thanks.
KARL STEFANOVIC:
Thanks Treasurer.