7 August 2020

Interview with Neil Mitchell, 3AW

Note

Subjects: COVID in Victoria; JobKeeper announcement;

NEIL MITCHELL:

Now before that, as I said JobKeeper reaches into a lot of lives and it’s going to reach into more lives because of the destructive nature of this lockdown and it’s being extended. On the line the Federal Treasurer, Josh Frydenberg, good morning.

JOSH FRYDENBERG:

Good morning Neil, nice to be with you although we all wish it was different circumstances.

NEIL MITCHELL:

Well we certainly do. You’re talking about $15 billion extra. I’d assume the majority of that, if not all of that $15 billion will go into Victoria won’t it?

JOSH FRYDENBERG:

$13 billion will go into Victoria. We’ll see an extra half a million Victorian workers who are on JobKeeper in this September quarter. That means Neil, one and a half million Victorian workers will be benefiting from JobKeeper. That’s nearly half the private sector workforce in our state. We recognise not just the emotional toll, but the economic toll that the stage 4 restrictions are having and we’re absolutely determined to ensure that every Victorian business has its best chance of struggling through this crisis and getting to the other side.

NEIL MITCHELL:

Gee that’s scary. One and a half million people. How many on JobSeeker? I mean how many people are living on the government purse?

JOSH FRYDENBERG:

Well you’re going to have four million on JobKeeper over the September quarter…

NEIL MITCHELL:

That’s nationally.

JOSH FRYDENBERG:

Yes and then another 1.6 million who are on the JobSeeker program.

NEIL MITCHELL:

And then you add the pensions and everything else. There’s a massive amount of welfare going out…

JOSH FRYDENBERG:

A couple of million pensioners, exactly. I mean, this is what your listeners need to understand, is that the Morrison Government have pulled out all stops to support not just our state of Victoria, but the nation through this once in a century pandemic. We are seeing families really struggle, businesses really struggle, and that’s why with JobKeeper, JobSeeker, the cash flow boost, the various other incentives and $750 payments, all designed to help people through this period.

NEIL MITCHELL:

Well in simple terms, how are you changing it? You’re easing it in a couple of ways. How are you changing JobKeeper?

JOSH FRYDENBERG:

There are two changes. One’s for the business turnover test and the other’s to the employee eligibility test. Previously to be eligible for JobKeeper in the December quarter, a business had to see their turnover fall by a certain amount in both the June and the September quarters. We’re now saying that they just need to meet the test for the September quarter. The reason being is through April, May and June Neil, there will be a number of businesses who did better than that turnover test and as a result they wouldn’t have been eligible. The second change is that we’re saying employees who were on the books as of the 1st July will be eligible for JobKeeper. Previously it was the 1st March. And again, this recognises the fact that some businesses in Victoria and around the country, as progress was made on the health front they started to make new hires, and now with the stage 4 restrictions obviously those people wouldn’t have been previously eligible for JobKeeper and now they will be.

NEIL MITCHELL:

So how many extra added in Victoria do you reckon?

JOSH FRYDENBERG:

Well we’re going to see 500,000 over the course of this September period and we think that number will increase in the December period and the March period by 800,000 each.

NEIL MITCHELL:

You reckon Treasury’s got the figures right this time?

JOSH FRYDENBERG:

Well, forecasting is difficult at the best of times let alone in a once in a century pandemic. And as you know, things are moving so quickly. What we said yesterday Neil - the Prime Minister and I, was that Treasury’s view that the stage 4 restrictions will now impact the national economy by between $10-12 billion in the September quarter and we could see between 250,000 and 400,000 Victorians either lose their job or go down to zero hours.

NEIL MITCHELL:

Is there still nothing there for, or no JobKeeper for sole traders?

JOSH FRYDENBERG:

Yes there is.

NEIL MITCHELL:

How? How does it work?

JOSH FRYDENBERG:

If you’re a sole trader and you’ve seen your turnover fall by that 30 percent, you can access JobKeeper.

NEIL MITCHELL:

Okay. You talk about the economy taking a belt. $15 billion alone on this. The whole country is being held back by what is happening in Victoria. Seven other states and territories got it right. Do you believe what happened here? Does the government believe as a result of mismanagement?

JOSH FRYDENBERG:

Well clearly there were major mistakes made in quarantine and that’s now a process going through with the enquiry. But obviously the community transmission we’ve seen in Victoria has not been replicated in other states. I mean Australia is one country at two different stages of dealing with this coronavirus. There’s Victoria and the rest in the other states. Restrictions are being eased, people are going back to work, and we saw that in the most recent job numbers with 210,000 new jobs being created in June across the country.

NEIL MITCHELL:

Well who’s accountable for that?

JOSH FRYDENBERG:

Well again, you heard directly from the Premier yesterday, his comments on that. I’ll let him speak to those quarantine matters. From the Federal Government’s perspective, the Prime Minister and I and our team, we’re absolutely determined to give Victorians every support that they need through this period.

NEIL MITCHELL:

I have heard though there’s some Federal frustration, anger, towards the Victorian Government. Is that unfair?

JOSH FRYDENBERG:

Well again, we obviously are maintaining a constant dialogue but what Victorians want to hear from their governments is the focus on getting those number of new cases down and getting the support to people who need it most. I mean a good example…

NEIL MITCHELL:

That’s not a no. That’s not a no. I’m told there’s frustration at the Federal level with the Victorian Government is that correct?

JOSH FRYDENBERG:

Well I’m not going to speak for everyone. My relationship with the State Treasurer is a good one and we talk regularly, so too with the Prime Minister and the Premier. I can tell you in recent days in light of these restrictions and the uncertainty for business about supply chains, I sat down with the Victorian Chamber of Commerce, more than 500 of their businesses across our state, with the Australian Industry Group, with the Business Council of Australia, the leading CEOs across the country. They explained to me the difficulties they had with some of the plans in Victoria, we’ve put that to the Victorian Government and some welcome changes have now been made.

NEIL MITCHELL:

Good. I agree, we established that yesterday and that’s a good thing. But the business leaders today, national business leaders, they’re accusing the Andrew’s Government of disgraceful lack of leadership and not even consulting them. They say they’ve been ringing you for help. Is that true?

JOSH FRYDENBERG:

Well of course I have been meeting with them but I do that in my capacity as the nation’s Treasurer. It’s really important to maintain that open dialogue with business given that the private sector employs nine out of every ten Australians. I mean they understand the importance of these supply chains. I mean to put it into perspective for you Neil, in Victoria Woolworths have about 44,000 staff. Four and a half thousand of those are in their distribution centres. They would’ve run out of key items across the country let alone in Victoria if they hadn’t been allowed to operate those distribution centres in the way that they need to.

NEIL MITCHELL:

I agree and I understand. But why are you sorting it out? Why isn’t the Victorian Government sorting it out?

JOSH FRYDENBERG:

Well I’m an ear for business and I keep an open door to all major stakeholders and I, in good faith passed on their concerns to the State Treasurer and he and the government have made some welcome changes.

NEIL MITCHELL:

You’ve been confident all along we can bounce, we can come out of this well, what does all this mean? Can we still come out of it well? Does it delay it? Does it threaten the recovery?

JOSH FRYDENBERG:

Well again I think the Australian economy is remarkably resilient and those job numbers in June showed that to be the case. While it’s hard for us here in Victoria, in the middle of the storm to see the light at the end of the tunnel, there is one. It’s important as well we keep a national perspective and an international perspective. And when it comes to the national perspective, Australia is doing well by global standards, and we went into this crisis with a debt to GDP ratio which was much lower than many other countries, and if you look at the United States, if you look across Europe, some of their challenges that they’re facing economically and on the health front are much worse than what we’re facing.

NEIL MITCHELL:

There are suggestions today what the country needs to do, a one percent Victoria tax as sort of a levy to help pay for that. Could you ever see that happening?

JOSH FRYDENBERG:

No.

NEIL MITCHELL:

Good. Why not?

JOSH FRYDENBERG:

I mean because we’re all Australian. We’re all in this together. I’ve said it before, I wear the Big V as a Victorian but I also wear the Big T, as the Treasurer. And it’s important that we need to stand up for each other at times of crisis. Who knows what the future will bring Neil? There could be other outbreaks in other states. But what we do know is that from both the health and the economic perspective, we will be there for Australians every step of the way. And whatever patriotism we feel as members of a particular state, that is, pails into insignificance compared to our patriotism as Australians. We’re all Australians. We’re all in this together. And that’s how the Prime Minister and I feel.

NEIL MITCHELL:

Tax agents are not allowed to practise. I know some people are having trouble getting their BAS done. This is another area, but can you cut them some slack on the due dates on BAS, on the BAS returns and also tax returns?

JOSH FRYDENBERG:

If people are having issues they should certainly contact the ATO. They have a hotline for various COVID related matters. But again, restrictions about particular operations and particular businesses will be matters for the Victorian Government here.

NEIL MITCHELL:

Yeah but the BAS is yours.

JOSH FRYDENBERG:

The BAS is ours and we’ve got a hotline to deal with that.

NEIL MITCHELL:

What about income tax?

JOSH FRYDENBERG:

In terms of all tax matters, if there are issues that businesses or households are having as a result of COVID-19, they need to contact the ATO. We’ve got the designated hotline to deal with such matters.

NEIL MITCHELL:

I know your office has been busy. Any decent politicians working the phones hard through their staff to talk to people, which was silly when it looked like they weren’t going to be allowed to work but I think that’s been sorted out. Are you getting an emotional reaction from your electorate?

JOSH FRYDENBERG:

Absolutely. I don’t want to understate how significant I think this emotional toll is on the Victorian community. Young kids who would normally be with their mates every day of the week at school or at weekend sport and are now locked up at home. Young mothers who can’t send their kids to childcare are feeling isolated. Grandparents who are not seeing their grandkids. Mums and Dads who are worried about their job security. These are really serious issues. I feel very deeply about it. I actually feel quite emotional about it too Neil. And the Prime Minister and Greg Hunt and I have spoken at length about that, and we’ve also allocated you would’ve seen just yesterday, an additional $12 million to ensure that people in Victoria can access further mental health support. We’re working with Lifeline. We’re working with Beyond Blue. We’ve allocated more money to train outreach workers with Headspace. This is the very sorry tale of the stage 4 restrictions.

NEIL MITCHELL:

You have to go into isolation yourself now if you’re going to Canberra, don’t you? Into quarantine?

JOSH FRYDENBERG:

I do.

NEIL MITCHELL:

When does that start?

JOSH FRYDENBERG:

Leaving on Sunday. Two weeks of isolation. Obviously being away from my own family at this time is not easy.

NEIL MITCHELL:

How long will you be away? Two weeks of isolation and a couple of weeks of Parliament?

JOSH FRYDENBERG:

Yeah, but I’m putting down a Budget on October 6th, so I’m going to have to spend a lot of time in Canberra. I mean I’ve been away pretty much months on end. But it’s not about me. It’s about the whole community who is going through a tough time and my thoughts right now are with our brave and selfless healthcare workers on the frontline who are doing a remarkable job trying to protect lives.

NEIL MITCHELL:

If you just put that big jumper with the Big T on it again, which Mark Knight will love. A tax agent, not to miss a moment says, “we ring the hotline, are you encouraging the tax office to cut Victorians some slack because of the problems caused by the lockdown?”

JOSH FRYDENBERG:

The tax office and again I’ll speak to them today, I’ll speak to the commissioner myself today, it’s really important and I know he gets this, that they need to take into account the situation in Victoria because it is very difficult for people. But subsequent to this conversation Neil, I’ll speak to Commissioner Jordan myself.

NEIL MITCHELL:

Thank you very much for your time and thank you for doing that.

JOSH FRYDENBERG:

Good to be with you.

NEIL MITCHELL:

Federal Treasurer, Josh Frydenberg.