NEIL BREEN:
The Treasurer Josh Frydenberg joins me on the line. Good morning, Treasurer.
JOSH FRYDENBERG:
Good morning, Neil. Nice to be with you and your listeners.
NEIL BREEN:
So good news, these tax cuts, but not everyone’s benefitting.
JOSH FRYDENBERG:
Well, over 11 million Australians are benefitting, and, as you say, in Queensland 2.2 million Queenslanders are also getting tax relief as a result of the Coalition’s tax cuts. If you’re a listener to your program this morning – a nurse or a teacher on $60,000 a year – you’re going to pay $2,160 less tax this year as a result of the tax relief that we’ve passed through the parliament. And as the economy is recovering from this once‑in‑a‑century pandemic, Neil, this money will be really important in being spent, whether it’s someone from Sydney flying into Queensland for a holiday when your borders open, or whether it’s a Queenslander going and making some changes to their home or contributing to the purchase of a new car. All of this will be money that will be spent across the economy helping to create more jobs.
NEIL BREEN:
And that was the key thing – stimulating the economy. But this week I did a fair bit of reading around the Reserve Bank of Australia’s interest rates decisions. The cash rate remained at 0.1 per cent, but they did talk about inflation. They wanted to stimulate inflation, and they think that next year interest rates may rise. Has the economy had enough help now from the federal government? Is it time to start winding it back, particularly when people think about property prices – no young person’s ever going to buy a house again.
JOSH FRYDENBERG:
Well, actually first home buyers are in the market right now in their strongest numbers for more than a decade, Neil. And programs like HomeBuilder and other programs that we’ve announced where people can build up a deposit in their superannuation, all of that is helping to create new home buyers in the market. But you’re right, there has been a dramatic increase in housing prices, and that’s off the back of historically low interest rates at just 10 basis points. We also know that this is something the rest of the world is experiencing – not just Australia. But there is quite a bit of talk about inflation, but people need to understand that the underlying inflation rate is 2.1 per cent, which is at the bottom of what the RBA have as their target band of between 2 and 3 per cent. And a number of the contributing factors to this rise in inflation has actually been supply side constraints, and they may be transitory in nature as opposed to longer term. But the good news for your listeners this morning is that the labour market – namely, the jobs market – has been particularly strong. We’ve managed to get the unemployment rate down to 4.6 per cent, which is the lowest in more than a decade. When we came to government unemployment was 5.7 per cent. And unlike other recessions, Neil, like the 1980s recession, the 1990s recession where it took between eight and 10 years to get the unemployment rate back to where it was, this time we’ve done it in just over a year. So we’ve had a really strong recovery. There’s a long way to go, but many of your listeners can be very confident and hopeful and optimistic going into this year’s summer period.
NEIL BREEN:
Underemployment, though, you took about employment – a lot of these people in jobs are underemployed in those jobs. That’s an issue, and we know particularly in the hospitality industry, they might be keeping on to a sliver of their job, Treasurer.
JOSH FRYDENBERG:
Well, in the hospitality industry there is actually job shortages in many aspects of it right now where we have had closed borders, so some of those international students or other skilled labourers and workers who may have been coming to Australia haven’t been able to come. And that’s created some workforce shortages in some areas. So I think there’ll be lots of opportunities for people across the economy, particularly as these restrictions ease. And it’s good news that Queensland will be opening up its borders, because I know how strong and vibrant your tourism sector is, for example, and how dependent it is upon those southerners from Victoria or from New South Wales coming across into Queensland and spending their hard‑earned money.
NEIL BREEN:
Well, we can’t wait. Believe me, we can’t wait for things to –
JOSH FRYDENBERG:
You’ll join them down at Sea World, will you?
NEIL BREEN:
Oh, yeah. I’ll be at the border with a sign, “Welcome back”.
JOSH FRYDENBERG:
“Welcome back”.
NEIL BREEN:
Yes, welcome home for those poor Queenslanders stuck interstate. It is disgraceful that we haven’t let them back home. I did need to ask you, though, are you in the Canberra bubble, Josh Frydenberg, because the French Ambassador yesterday, he said he loved Australia but he wasn’t feeling the love from inside the Canberra bubble. And I think he was talking about the Prime Minister and senior members of government.
JOSH FRYDENBERG:
Well, I’m actually in the Melbourne – I wouldn’t call it bubble – but I’m in Melbourne right now talking to you. Look, in terms of the comments by the French, obviously we refute those personal allegations that they’ve made. But at the same time we recognise that they’re deeply disappointed that a major financial contract has come to an end. But at the same time we will continue to look for areas where we can cooperate. Our two‑way trading relationship is worth nearly $8 billion a year. We have other defence contracts in place with France. And the new partnership that Australia has secured with the United Kingdom and the United States is a historic one. I mean, these are two longstanding allies and major military powers, and we’re going to get access to not just nuclear submarine technology but also artificial intelligence technology, cyber security technology, the most advanced weapons systems. And, Neil, you know that our regional environment has become increasingly challenging, and so, therefore, as a country of 25, 26 million people, we actually need to secure the best possible defence equipment. And that’s what we’re seeking to do.
NEIL BREEN:
Do you think we should make a public apology to the French, just to try and clear the air and move on? They like a scorned lover. They’re not happy.
JOSH FRYDENBERG:
Well, I think you’re stating the obvious there. But, you know, I hope all – I hope time heals all wounds, and obviously this will take a little bit of time. But we’re also looking for other areas where we can cooperate. And, you know, we do have a number of shared interests with France. They’re a major player in the Indo‑Pacific. Obviously people‑to‑people links, trade links that I’ve talked about, and other areas of strategic cooperation in the defence sphere. So we’ll find those areas of commonality. We’ll try to build on the existing relationship going forward. But I do think that AUKUS will hold Australia in good stead going forward.
NEIL BREEN:
Okay, Treasurer Josh Frydenberg, well, maybe the Prime Minister can just say to the French, “It wasn’t you, it was me,” and then we can just clear on, clear the decks. Thanks for your time.
JOSH FRYDENBERG:
Take care. Bye‑bye.