JOSH FRYDENBERG:
Well, don’t look at what Labor says, look what Labor does. And the reality is that under them childcare fees went up by more than 50 per cent.
LEON BYNER:
Yes.
JOSH FRYDENBERG:
And under us we’re investing record amounts in childcare. And pre-COVID what we saw was a record level of female workforce participation off the back of our changes. Now as you say, we’ve got billions of dollars in the Budget this year for childcare, and we also announced an additional $900 million through COVID to keep 99 per cent of those providers open providing the critical services to those critical workers who were needed in the COVID response. So our commitment to child care is proven, it’s worked. And as for Labor, well, what I didn’t see in their Budget Reply Speech last Thursday was an alternative vision for Australia. What we saw from us is a plan to create nearly a million new jobs, helping to drive the economic recovery, ensuring that the private sector is encouraged and enabled to hire, to innovate, to invest and to grow.
LEON BYNER:
Yes. Treasurer, there was a very positive survey released by Westpac yesterday showing a very strong interest in enthusiasm for the economy and, indeed, the budget. Obviously you’re not surprised, I guess you would say that, or are you?
JOSH FRYDENBERG:
Well, Leon, I’m focused on one thing, creating jobs. And you need positive consumer sentiment and positive public confidence in the economy to help drive job creation. And we’ve seen indications of both those developments in recent days and weeks. As you say, yesterday there was an 11.9 per cent increase in consumer sentiment in this survey that was released, and previously we saw consumer confidence increase for the sixth consecutive week, having recovered 93 per cent off its falls from earlier in the year. And we know that in the last three months alone 458,000 new jobs have been created. 60 per cent of which have gone to women, 40 per cent have gone to young people. So what we’re doing is driving job creation, and there are lots of measures in this Budget to do that, whether it’s around infrastructure investment, whether it’s around tax cuts for more than 11.5 million Australians or whether it’s around those new business investment incentives which will help drive our productivity and, of course, the creation of more jobs.
LEON BYNER:
There’s also a point of dissention between the Coalition and Labor about tax cuts for the higher income. Now I notice that they’re basically saying that people on incomes like $180,000 plus, I’ve seen some comments from their side that said, “Well, you’re rich if you’ve got that so you’re likely not necessarily spend it.” But is it not the case that many of their union members ,who support Labor, and this is not a criticism; it’s an observation of accuracy, earn 180 grand? In fact, it’s far less than your average backbencher for a start, let alone minister.
JOSH FRYDENBERG:
Well, the key point here is that these tax cuts are already legislated. We went to the last election, Leon, with a very clear plan, to cut taxes for millions of Australians. Labor went to the people of Australia with a different plan, to increase taxes by $387 billion. And you don’t need me to remind you of the retirees tax, the housing tax, the superannuation tax, the increased taxes on people’s income.
LEON BYNER:
Yes.
JOSH FRYDENBERG:
It was all there for people to see, and they rejected it, and they rejected it emphatically. And then after the election we legislated our tax cuts. So they’re law. That third stage is coming in 2024-2025. Now Anthony Albanese is saying he wants to wind back tax cuts. He wants to take away that tax relief from the Australian people, again to fuel his increased spending. Because under them, they’ll always spend more and, of course, they’ll always tax more. Under us and under the Morrison Government, we’re focused on reducing people’s taxes and building that bridge to the other side of the coronavirus. And that is our key focus.
LEON BYNER:
Why are you in Adelaide?
JOSH FRYDENBERG:
I’m in Adelaide to visit a number of important projects, including the Magill Portrush Road development where we’ve invested significant funding through our Urban Congestion Fund. I’m going to visit the Adelaide Holocaust Museum this morning, with James Stevens, the Member for Sturt, together with the Premier of South Australia, Steven Marshall, because we’re making an important contribution of two and a half million dollars to that museum so that the children of South Australia can learn about that horrible period in world history to ensure that we never repeat it. Off to the Norwood Football Club as well. We’ve got a little project there that we’re supporting as well. So right around the state I’ll be visiting important sites, talking to stakeholders about how we can improve and strengthen our economy.
LEON BYNER:
South Australia really needs a fillip for jobs because our unemployment rate is 7.9, even higher than Victoria that’s been shut down for a while. A lot of people in the business community have said that we have to do something really serious. And I know measures have already been put in place to lower payroll tax, but it is a tax on jobs, and there are those who think that we just shouldn’t have it. What do you think?
JOSH FRYDENBERG:
Well, I do think payroll tax is a tax on jobs. I also understand why Rob Lucas and Steve Marshall rely on that revenue stream to provide essential services across your state. But I think states could do more, and that’s not just me saying it; that’s also the Governor of the Reserve Bank. You see, we at the federal level have announced a record debt and a record deficit off the back of COVID-19 because we’re making investments in Australia’s future.
LEON BYNER:
Yes.
JOSH FRYDENBERG:
And our commitments are nearly 16 per cent of GDP. The states’ economic commitments through COVID are just around 3.5 per cent of gross state product. So they can do a lot more, and I would like to see them do a lot more, whether it’s on waiving, not simply deferring payroll tax obligations, whether it’s supporting more small business grants, whether it’s bringing forward their own infrastructure projects. You see, in Western Australia, Leon, they’re talking about a budget surplus. A surplus when we’re announcing record deficits. I don’t think that is what the economy needs. The economy right now needs this additional support to get people to the other side.