NATALIE BARR:
Joining us now is Treasurer Josh Frydenberg. Morning to you.
JOSH FRYDENBERG:
Good morning.
NATALIE BARR:
So what happens if a state is still in lockdown after these payments end? Are you trying to punish the Premiers who won’t open up?
JOSH FRYDENBERG:
Well, the Doherty Institute modelling, which was the basis for the national plan that was agreed at national cabinet, said at 80 per cent that lockdowns were unlikely. They may exist but they’ll be temporary and they’ll be targeted is the expectation, in which case we have the welfare system as the safety net to provide that support. But the existing COVID disaster payment, Nat, is an emergency payment. Right now the commonwealth’s providing more than a billion dollars of taxpayers’ money each and every week. It’s supporting around one and a half million people, and that emergency payment needs to come to an end, which is why we’ve set out a transition plan at 70 and 80 per cent.
DAVID KOCH:
Okay. The economic stimulus packages and supports have been great. It’s been bigger than most of the rest of the world. But what do you say to businesses and Australians that say, “Hey, it’s too early. You know, you’re a being a bit stingy here. Why not extend it for a bit further?”
NATALIE BARR:
Well, I don’t think anyone’s called $300 billion of economic support being stingy, Kochie. That’s what we have been providing, and, as you know, from JobKeeper, which was a huge success, to the JobSeeker coronavirus supplement which was doubled, to the cash flow boost, to the business investment incentives, to the tax cuts and now to the COVID disaster payment and the other business support packages, it’s all been designed to ensure that households and businesses can get through COVID-19 and come out stronger on the other side. But if you look around the world, Nat and Kochie, whether it’s in in the UK, whether it’s in the US, whether it’s Canada, whether it’s Japan, people are starting to get about their normal lives. They’re learning to live with the virus in a COVID-safe way. And as our vaccination rates hit 70 to 80 per cent we need to do that as well. So this announcement today backs our plan and allows Australians to get their lives back.
NATALIE BARR:
Yeah, look, we understand, and it has been fantastic. But this is an example of something that’s been raised with us this morning: so at 80 per cent, two weeks after you hit 80 per cent then the payment goes, right? So a crew member on a big musical in Melbourne says 80 per cent opening means 150 people in the theatre. That doesn’t employ everyone back into that environment. So what do the others do who aren’t employed?
JOSH FRYDENBERG:
Well, again, as I said, we’ve got the safety net with our welfare system. But we’ve also got other economic support programs which are designed to help that particular industry – the entertainment industry. We’ve got other economic support programs that are designed to help with the tourism industry. And gradually our economy will come back. What we’ve been shown throughout this pandemic is how resilient Australia’s economy is. And as restrictions ease people get back to work very quickly. There will be a transition, but we can’t live in lockdown forever, Nat. And these emergency payments cannot continue at the scale that they are forever. And that’s why I indicated about a month ago that there should be no expectation on behalf of the Premiers and the Chief Ministers that the economic support at this level could continue indefinitely.
DAVID KOCH:
Because just quickly, with low migration there’s labour shortages all the way through the country, aren’t there?
JOSH FRYDENBERG:
That’s right.
DAVID KOCH:
There are jobs available and when Victoria and New South Wales come out of lockdown it’s expected that those shortages are going to get worse.
JOSH FRYDENBERG:
Well, in terms of what the COVID disaster payment has enabled people to do is when they’ve lost hours they’ve been able to still receive an income. They may not have lost their connection with their employer. So once those restrictions are eased, they can get back to work. And, you’re right, there were workforce shortages, Kochie, before the Delta outbreak. And with those international borders closed, we still expect very strong demand for labour. Unemployment today is four and a half per cent – that’s the lowest in 13 years. Yes, a number of people have been stood down on zero hours, but that’s what the COVID disaster payment has been designed to assist with. And once restrictions ease those people will hopefully be back at the same job.
DAVID KOCH:
Okay. Treasurer, thanks for joining us. Appreciate your time.
JOSH FRYDENBERG:
My pleasure.