NEIL MITCHELL:
The Federal Treasurer Josh Frydenberg, good morning.
JOSH FRYDENBERG:
Good morning. Nice to be with you, Neil.
NEIL MITCHELL:
You haven't got some emergency funding for our ambulances, have you?
JOSH FRYDENBERG:
Well, we have had plenty of emergency support for Victoria during COVID. As you know, the Federal Government has provided more than $53 billion ‑ that's more than $8,000 per capita to the people of Victoria, which is the highest on a per capita basis across the country.
NEIL MITCHELL:
Look, I apologise in advance if I interrupt, but we don't have very long. Did you consider continuing the freeze on immigration?
JOSH FRYDENBERG:
No. We recognise that immigration has been part of the great Australian story, it's part of diversity, our tolerance, and it's an important part of building a stronger economy.
NEIL MITCHELL:
You're going from 41,000 during the pandemic to 235,000 in a few years. That has to keep wages down, doesn't it?
JOSH FRYDENBERG:
No. What we're focused on is...
NEIL MITCHELL:
Oh, but hang on, hang on. You were arguing last night that a tight labour market puts wages up. You bring in more immigrants, the market isn't as tight.
JOSH FRYDENBERG:
Well, we're bringing in skilled workers which actually boost the productivity of the nation. And if you look at the places that they're filling, whether they're engineering positions, whether they're IT and software positions, or indeed whether they're hospitality workers, one of the biggest issues for small businesses listening to your program this morning, Neil, is actually workforce shortages. They need more workers in their cafes, in their restaurants, and on their building sites.
NEIL MITCHELL:
That's a really good point. So, what happened to the hidden army? Why couldn't you allow the pensioners to work more without the financial penalty?
JOSH FRYDENBERG:
Well, you do have a pension Work Bonus already, which allows them to earn income...
NEIL MITCHELL:
Oh, yeah, but it's pretty tight.
JOSH FRYDENBERG:
Yeah, I mean, look, we continue to look at our settings. But what we want people to do is take those jobs when they're available to them. And that's why we've also invested heavily in last night's Budget in training, assisting small businesses to go out and train their workers and to create more workers across the care workforce, which is really in need. Because whether it's veterans, NDIS, or aged care, there's a growing care workforce.
NEIL MITCHELL:
Did you consider allowing pensioners to work more with less penalty?
JOSH FRYDENBERG:
We have made changes in previous Budgets, actually, on that, Neil. And, look, we continue to evaluate our settings on that. But there was plenty in the Budget to help seniors. There's also particular bonuses for employers to take on people who are seniors in our community into work.
NEIL MITCHELL:
Treasurer, there's money, there's handout money at the end of the financial year. Do you want people to spend it?
JOSH FRYDENBERG:
Well, of course, that's their individual decisions. But the cost of living pressures are very real and household budgets are tight, and with fuel prices above $2 a litre this is a major pressure, cost of living pressure, for Australian families. So, that's why we cut the fuel excise.
NEIL MITCHELL:
Yes, but is it in the interests of the country for them to spend it?
JOSH FRYDENBERG:
Well, it's in the interests of the families to make their own decisions. What we are giving them is the ability to spend it on things that they so desire. And, you know, whether you're a pensioner or whether you're a low middle‑income earner, these cost of living relief measures that we announced in last night's Budget, I think, will make a practical difference. We've done it in a temporary, targeted and responsible way.
NEIL MITCHELL:
And do you want people to dob in petrol stations who don't pass on the excise?
JOSH FRYDENBERG:
Well, certainly, if the price is higher than it otherwise should be, then the ACCC will come down pretty hard because...
NEIL MITCHELL:
Yeah, but do you want us involved? Do you want the public involved? "That petrol price isn't [sic] wrong" ‑ tell the ACCC?
JOSH FRYDENBERG:
Well, again, people will go to get the lowest price at the bowser. But what the ACCC does have, Neil, is they have a fuel monitoring division, section within their organisation. I've spoken to the head of the ACCC...
NEIL MITCHELL:
Yeah, but they've admitted to me in the past, they've got less clue, they haven't got any more clue than most people about how petrol prices work. How can you be sure they can keep them down?
JOSH FRYDENBERG:
Well, what we've done is cut the fuel excise by more than 22 cents, and that will probably take a couple of weeks to flow through to the bowser because it depends how quickly the different petrol stations fill up their tanks. So, if you're in a city, you may be filling up your tanks in a petrol station on, you know, a few times a week, whereas in the regions it might be on a less regular basis. What the ACCC will do is monitor the prices across the country and if a retailer is engaging in misleading and deceptive conduct then they can face a penalty of up to $10 million.
NEIL MITCHELL:
OK, we've got 2.5 minutes left. What will be the tax, income tax, intake over the next year?
JOSH FRYDENBERG:
Well, it's normally around $500 billion of receipts that we have. Principally income tax is the highest contribution to that, company tax is as well.
NEIL MITCHELL:
Wasn't it 250 billion last year, wasn't it?
JOSH FRYDENBERG:
But I'm talking about tax, I'm talking about receipts more generally across the economy. What we...
NEIL MITCHELL:
Yeah, but I'm trying to nail down income tax. How much are you taking in income tax now and how much will you be taking in four years' time?
JOSH FRYDENBERG:
Well, there's more people in work, you see? And that's why...
NEIL MITCHELL:
Yeah, sure. But what are the figures?
JOSH FRYDENBERG:
But that's why the tax revenue goes up.
NEIL MITCHELL:
But what are the figures?
JOSH FRYDENBERG:
So, we've got around 2 million more people in work today as a result of the lower unemployment. Now, the biggest driver of the improvement to the budget bottom line has actually been more people in work paying more tax, and fewer people on welfare.
NEIL MITCHELL:
But what are the figures, Treasurer? Do you know what the four year outlook is for income tax? In four years' time, how much will be taken in compared to what it is now? What is the per centage increase?
JOSH FRYDENBERG:
I don't have the exact number in front of me right now. But what I can tell you is that tax revenue has lifted off the basis of more people in work. But what we have delivered is some $40 billion in tax relief, Neil, since the start of the pandemic.
NEIL MITCHELL:
Victoria says they're being dudded, and it would look like they've got an argument. 92 cents in the dollar, we've gone down to 86. How can you say Victoria is not being dudded?
JOSH FRYDENBERG:
Well, there was a $1.4 billion increase in the GST payments this year, as opposed to last year, which was a 7.9 per cent increase. And as I said earlier, the Federal Government has provided, on a per capita basis, more to Victoria than any other state...
NEIL MITCHELL:
Alright, but... I'm sorry, but we're running out of time, which is ridiculous. But are you saying, the Victorian Treasurer says we've just flatly been dudded. Are you denying that?
JOSH FRYDENBERG:
Absolutely. I mean, there are the GST allocations, and Victoria is getting close to $18 billion. And that's only second to New South Wales.
NEIL MITCHELL:
We've got 10 seconds left. Well, you know, this is ridiculous. The election will be, I assume, the 14th or the 21st of May. Clearly, this is an election Budget. It would silly not to be ‑ you'll agree with that. It is an election Budget. I know you'll say it's responsible, but it's an election Budget, isn't it?
JOSH FRYDENBERG:
Well, Neil, it's on the eve of the election, but what this Budget is for is for families, for small businesses, it's for seniors. It does a number of things simultaneously. It drives down the cost of living and it puts in place a long‑term economic plan.
NEIL MITCHELL:
You're giving people their own money back, do you really think people will change a vote on the basis of this?
JOSH FRYDENBERG:
Well, what we want to always do is strengthen the economy, and to relieve those cost of living pressures now does make a practical difference to people listening to your program.
NEIL MITCHELL:
Thank you for your time.
JOSH FRYDENBERG:
Always a pleasure.