MICHAEL ROWLAND:
The Treasurer Josh Frydenberg joins us now from Canberra. Treasurer, good morning.
JOSH FRYDENBERG:
Good morning, Michael.
MICHAEL ROWLAND:
What’s the latest you’ve heard about Australia’s embassy staff in Kyiv? Have they all got out, and their families?
JOSH FRYDENBERG:
Well, we have been removing successfully Australian embassy staff, and obviously we’ve called for Australian citizens in the Ukraine to also depart. Michael, we’re at a very dangerous juncture. Vladimir Putin doesn’t bring 100,000 troops to the border of Ukraine to check out the view or to have a picnic. Something’s brewing. And if, indeed, the Russians invade Ukraine, it will have reverberations far and wide. So it’s a very serious situation. We’re continuing to talk with our allies and friends as well as, you know, key partners in the region.
MICHAEL ROWLAND:
If Russia does invade, will Australia consider other measures to react to that beyond economic sanctions in the military area?
JOSH FRYDENBERG:
Well, we’ve said that we’re not looking at direct military involvement. What we obviously would do is join with other friends and parties who look at the broader economic sanctions that are available. There would need to be a response, and Australia would be part of a global response, no doubt.
MICHAEL ROWLAND:
Okay, let’s come back to Australian politics. You’re talking up the benefit of tax cuts, particularly to young women this morning. Also there’s lots of speculation about what you’ll do with this low to middle income tax offset, which expires, at this stage, at the end of June. It’s worth more than a thousand dollars to more than 10 million low to middle income families. Will you roll that over next financial year in next month’s budget?
JOSH FRYDENBERG:
Well, Michael, that’s an $8 billion question, and I’m not about to answer it on your show today.
MICHAEL ROWLAND:
You can if you like.
JOSH FRYDENBERG:
There’s a lot of speculation as to what may or may not be in next month’s budget. What we have done as a government is look to cut taxes at every turn. Small business tax cuts have now rolled out and small business taxes are now at their lowest level in 50 years. We’ve cut taxes for more than 11 million households and more than $30 billion has flowed. And just last week I introduced a bill into the parliament to put in place a patent box to encourage innovation, research and development and new patents in the field of medical and biotech technology. Because, as you know, we have a great industry here in Australia, great champions like Cochlear or CSL or ResMed, and we want to see the next generation of medical device manufacturers and biotech entrepreneurs. So that’s why we introduced that concessional company tax rate of 17 cents in the dollar. We’ve also got the broader structural reform that we’re rolling out, which we’ve legislated but is yet to take full effect, which will see a 37 cents in the dollar tax bracket abolished and 95 per cent of Australian taxpayers pay a marginal rate of no more than 30 cents in the dollar. That’s significant structural reform that’s already been legislated.
MICHAEL ROWLAND:
Okay, so we’ll just wait to see what you do about the tax offsets. You realise, though, if you don’t roll it over it effectively represents a tax rise for all these families come next financial year?
JOSH FRYDENBERG:
Well, obviously I don’t accept that characterisation.
MICHAEL ROWLAND:
Well, they’ll be paying $1,000 a year if you don’t roll it over. They’re having to fork out a $1,000 a year that they are getting care of the tax cut at the moment.
JOSH FRYDENBERG:
Well, as you know, Michael, the low and middle income tax offset is not a permanent feature of the tax system. We’ve introduced it due to the particular economic circumstances of the time. But if you think back to Kevin Rudd and the global financial crisis with their $900 cheques or, indeed, during this recession when we did our $750 payments to pensioners, carers and veterans, that was based on the economic circumstances at the time. When they did not continue you didn’t say that veterans or carers lost income. They were a supplement based on the conditions at the time. Now, we haven’t made a decision about the low and middle income tax offset, but we have legislated significant structural reform as well as bringing forward stage 2 of the tax cuts. And that is already seeing money roll out into people’s pockets, particularly as you said at the top of the program, for young people and for young women. If you’re a woman who’s 25 and under you’ve seen more than $2,000 of tax relief on average and 20 per cent less tax being paid by you compared to what you would have paid under the Labor Party. That’s a very big difference.
MICHAEL ROWLAND:
Before we go, what did you make of Jenny Morrison accusing Grace Tame of showing a lack of manners and respect in that exchange or that appearance of the Prime Minister and herself at The Lodge?
JOSH FRYDENBERG:
Michael, I could understand her disappointment, and I thought her comments were very measured. And, indeed, the whole interview gave Australians an insight into the Morrison family home. And he’s obviously supported by a very beautiful family, and Jenny in particular, and his two girls. So I didn’t see, I didn’t have any problem with what she said. I thought it was very measured and reflected her, you know, heart‑felt feelings.
MICHAEL ROWLAND:
I mean, I guess the question is, and critics are raising the counterpoint, did Grace Tame have to smile as an abuse survivor?
JOSH FRYDENBERG:
I don’t think anyone has to smile, but, you know, you only had to look at the camera, you only had to look at that scene and you could see how uncomfortable it was. And, you know, that was a day of celebration. The fact that a new Australian of the Year was about to be announced and, of course, you know, Grace Tame as having been the Australian of the Year being invited to the Prime Minister’s residence, that’s a great honour for anyone, and obviously, you know, Jenny Morrison, and I think in very measured comments, thought the behaviour should have been somewhat different.
MICHAEL ROWLAND:
Josh Frydenberg, appreciate your time this morning. Thank you.
JOSH FRYDENBERG:
Always a pleasure.