LEON BYNER:
Josh Frydenberg, in the weekend press it was reported that your Government is going to look to raise $1.4 billion a year tax on the gas industry to replace falling revenue and protect the budget. What is the score on that?
JOSH FRYDENBERG:
As you know, we did a review into PRRT and the Government announced its response in November 2018. Part of that response was to look at the gas regulations, we’re not going to get that review back until after this year’s budget. So that speculation, as I said over the weekend, was false.
LEON BYNER:
Alright. Now we’ve got another issue because you’ve got the Reserve Bank Governor who has warned long-term economic impact of the drought, the direct cost of bushfire damage, the Coronavirus and now the floods is going to have a major impact on tourism. What are we going to do?
JOSH FRYDENBERG:
The Governor is absolutely right, we are facing a number of major economic shocks; the bushfires have been devastating for many communities around the country and, indeed, they’ve still been going. We’ve seen the ongoing drought which again has hurt our agricultural output and therefore the economy as a whole. And now the Coronavirus with the travel restrictions in place is going to be particularly painful for a number of sectors in Australia which rely heavily on either Chinese tourists or Chinese students. But we will manage that and we will get through it. It underlines the fact, Leon, that our economic discipline over the last six and a bit years has put us in that position; to respond to these economic shocks without putting up taxes and if we didn’t have that economic discipline, Australia wouldn’t have the ability to respond as the Morrison Government currently is.
LEON BYNER:
Now, you, as we understand it, had a communication from our Treasurer, Rob Lucas, who has asked you to bring forward tax cuts because he is anticipating a drop in GST revenue. What has been your reaction to that?
JOSH FRYDENBERG:
My reaction is the same privately as it is publicly. Our priority is on ensuring those tax cuts that we took to the last election which we legislated after the election are providing the money into the pockets of hard-working South Australians and Australians more broadly and…
LEON BYNER:
Yes, but our Treasurer wants you to bring them forward.
JOSH FRYDENBERG:
Well, our focus is on ensuring that the existing tax cuts that we took to the election, that we faithfully put to the Australian people and they voted us in on the basis of our policies, that they are implemented as they’ve now been legislated. These are really important and significant tax cuts. We’re going to see Australians who earn between $45,000 and $200,000, pay a marginal rate of tax that’s no more than 30 cents in the dollar…
LEON BYNER:
Yes, but Rob Lucas wants you to bring them forward like yesterday.
JOSH FRYDENBERG:
Well, Rob is entitled to his opinion and I have a very good working relationship with him and indeed, your Premier, just as our Prime Minister does. But our focus has been when it comes to the tax cuts on implementing the ones that we took faithfully to the election. But I do point out to Rob and to your listeners, that in the Mid-Year Economic and Fiscal Outlook, which came down just before Christmas, we announced $4.2 billion in infrastructure projects and spending that is being brought forward. We’ve announced more than half a billion dollars extra for the aged care sector and, in relation to the drought, we’ve made $1.3 billion of funding commitments since the election. So there is extra money going into the economy, not to mention the $2 billion Bushfire Recovery Fund, which is over and above those payments that traditionally go to the states from the Commonwealth for disaster relief.
LEON BYNER:
Just quickly, I know that there is both state and federal extra money for bushfire relief. A lot of people are still calling us worried that a lot of that money not getting to where it is needed.
JOSH FRYDENBERG:
Tens of millions of dollars have already made their way into people’s pockets and more will over the coming days and weeks. We’re working closely with the states on ensuring the small businesses, the primary industries, the households, the wildlife habitat restoration and mental health support, all of that. Those announcements that we’ve made are making their way to the communities most in need. We will continue to do everything possible to ensure communities get back on their feet.
LEON BYNER:
Thank you for your time, Minister.
JOSH FRYDENBERG:
Good to be with you. Today is a big day because we have the President of Indonesia here in Parliament, only the second Indonesian President to address a joint sitting of the Parliament and I think it says volumes about our relationship with Indonesia, our largest and nearest neighbour.
LEON BYNER:
Do you think we’re going to do more trade with that country as a result of this?
JOSH FRYDENBERG:
Absolutely. You’re going to see 99 per cent of exports, one way or another, duty-free when we conclude this deal. You’re going to see a lot more Australian investment in Indonesia and a country of 270 million people that is only growing bigger over time, is very good news.