LARA VELLA:
Joining me now is Treasurer Josh Frydenberg. Treasurer good morning to you.
JOSH FRYDENBERG:
Nice to be with you.
LARA VELLA:
Treasurer, in the mid-year budget review, the Government revised its forecast surplus. That’s got to hurt?
JOSH FRYDENBERG:
Well actually what these numbers show is that Australians can be confident about their economic future, we’re putting more money in their pockets with the tax cuts and we’re seeing the Budget come back to surplus for the first time in 12 years. We’re seeing record investments in infrastructure as well as guaranteeing the essential services that people need and rely upon including record funding for schools, for hospitals and for aged care. So, what these numbers do show is that we do face a challenging economic times with the drought here at home and also the trade tensions abroad. But what we are doing is bringing the Budget back under control.
LARA VELLA:
Treasurer you’re saying you’re putting more money back in workers’ pockets, but the evidence suggests that workers aren’t spending it, what does that indicate to you?
JOSH FRYDENBERG:
Well it’s our job to put more money in their pockets, it’s their choice as to whether they spend or they save. What we did see in the most recent numbers was that household disposable income had its biggest rise in a decade, and that’s not insignificant. But ultimately people will pay down their debts, just like the Government is and that will free up more money into the future for them to spend in the economy as they reduce their interest burden.
LARA VELLA:
Over the past 24 hours, you’ve certainly been putting on a brave face, taking I guess, a glass is half full type of approach, saying that the outlook for the Australian economy remains positive, but this shift in policy, it certainly indicates that there’s work to be done ?
JOSH FRYDENBERG:
Well there’s always work that we continue to do to strengthen the Australian economy, but if you look at these numbers, it shows that the Australian economy will be growing faster than the United States, the United Kingdom, Germany, France, Japan and other comparable nations next year. We saw the unemployment rate come down from 5.7 per cent when we came to government to 5.3 per cent today and more than 1.4 million new jobs are being created and what we saw in yesterday’s mid year economic update is $4.2 billion worth of infrastructure projects, either being brought forward into the forward estimates or they’re new projects that are getting underway, so this is very significant.
LARA VELLA:
Treasurer if we step back from this macro surplus outlook for a moment, why should the average Australian worker care if there’s a surplus if their wages aren’t going up, and what’s your plan to get wages moving?
JOSH FRYDENBERG:
Well the Government pays down debt just like families watching your show this morning pay down their mortgage over time, and our interest bill on our debt last year was $19 billion. Over the next few years that will be reduced to $14.5 billion, that frees up money to be spent on schools, hospitals, infrastructure and other essential services. So the lower your debt levels, the lower your interest payments and that means that the Government is living within its means and that’s critically important.
LARA VELLA:
Treasurer, just finally, where’s the Prime Minister?
JOSH FRYDENBERG:
The Prime Minister is overseas with his family. He’s having a well-deserved break and obviously it’s been a very busy year. He’ll be back at work shortly and then he’ll be off to India leading a delegation to advance Australia’s interests.
LARA VELLA:
Alright, Treasurer Josh Frydenberg, nice to chat with you this morning. Thank you.
JOSH FRYDENBERG:
Good to be with you