NEIL MITCHEL:
The Treasurer Josh Frydenberg, good morning.
JOSH FRYDENBERG:
Nice to be with you Neil.
NEIL MITCHELL:
Well, thanks for your time. Wall Street - biggest single day drop since the crash in '87. What’s your advice?
JOSH FRYDENBERG:
Well, this volatility just reflects the uncertainty that we're seeing with the spread of the virus and obviously the President made some announcements yesterday about travel restrictions in the days before. We saw developments in Italy, but your listeners can be reassured that our banks are very well capitalised. I met with the bank chiefs just a few days ago, the corporate balance sheets are very strong and the economy is actually in a position of strength to respond and yesterday's announcement about our Stimulus Package will support the economy at this time.
NEIL MITCHELL:
So is that your advice to the traders? To the Australian markets today?
JOSH FRYDENBERG:
Well, my advice is just to go about your daily lives. Businesses need to continue to employ people, people need to continue to shop, go out to their restaurants and our package yesterday was very much targeted, it was very temporary and it's also proportionate to the challenge we face but it is designed to boost the cash flow of small businesses so they can keep people employed, as well as encourage more investment and there will be those $750 cash payments going to six and a half million Australians who have a propensity to spend across the economy.
NEIL MITCHEL:
There is a sense of panic around though isn’t there and on the markets, at least if not in the public?
JOSH FRYDENBERG:
Well now is a time for calm, Neil. Now is a time for team Australia, for governments, both federal and state to come together, for businesses to be flexible about their employees and their situations and of course, for Australians to get out there and spend.
NEIL MITCHEL:
Now I'm calling it economic patriotism, or fiscal patriotism, where you cut everybody some slack.
JOSH FRYDENBERG:
Well, there will be another side to this and we'll get over this and when we're over this, we want to be stronger and we want to be more productive as a nation and that's where our measures yesterday were targeted.
NEIL MITCHEL:
I've got some specific questions from audience members which I'll read to you in a moment. But if the Grand Prix is cancelled, as it seems likely, it's going to cost Victoria a hell of a lot. Could the Federal Government help out?
JOSH FRYDENBERG:
No. These are multibillion-dollar corporations, states obviously have their own balance sheets and we're not in the practise of bailing out for these events. I'll obviously watch, like you will, for announcements on this particular event. I note that Paul Little has said it's going ahead but of course, we as a federal level have taken the steps necessary based on the Treasury advice to support the economy and that was in our package of measures yet announced yesterday.
NEIL MITCHEL:
Is the medical advice to the Federal Government still that the Grand Prix can go ahead?
JOSH FRYDENBERG:
The medical advice as of yesterday to the Federal Government, I also spoke to the Chief Medical Officer this morning, is that mass gatherings should not be cancelled. Now that's the advice from the Chief Medical Officer who works with the State Medical Officers. But as you heard from the Prime Minister at the start of your programme, decisions will be taken by state governments, organisers of particular events, and that will be matters for them.
NEIL MITCHEL:
What do you want from the states today in your meeting? What do you hope to come away with?
JOSH FRYDENBERG:
Well I think they'll get a good briefing on the situation, both health and economic, of the impact from the spread of the coronavirus. I think it's up to state governments like the Federal Government to do what they can to support the economy. Some of the states have already moved, the South Australian Government did move, we also heard from the Queensland Government to provide some payroll tax deferrals. Any measures that the state governments can provide to support their economy will be welcome at this time, because the coronavirus continues to evolve. There are challenges for business and we want as many Australians stay in a job and as many Australian businesses continue to do business.
NEIL MITCHEL:
Would you like to see the payroll tax relief across all states?
JOSH FRYDENBERG:
Well that's obviously a good option for state governments to look at, that's within their bailiwick. We did what was in our area, namely providing these cash payments to small businesses for cash flow, the wage subsidy for apprentices, the investment allowances through accelerated depreciation as well as those cash payments.
NEIL MITCHEL:
Some questions from the audience, you're asking pensioners to spend their $750, where? Where do you want them to spend it? Do you want them to go out to restaurants? You want them to pay off the gas bill? What do you want them to do?
JOSH FRYDENBERG:
Well it's not for me to be specific about that, that's matters for them. But, of course, money that is spent at this time supports the economy, but they’re decisions for them.
NEIL MITCHEL:
Ok, but I'll take upon, not many of them are going to be going out. Already France has told everybody 70 and over to stay indoors. I mean, they won't be running to restaurants and theatres, I wouldn't think?
JOSH FRYDENBERG:
Well, that hasn't been the advice here in Australia.
NEIL MITCHEL:
Self-funded retirees, are they entitled to anything? They're struggling, you know, with interest rates so low. What are they entitled to? Anything?
JOSH FRYDENBERG:
Well, we have made some announcements around the deeming rates. As you know that's not part of the stimulus package. But that will help people. But you know, when people are saving, obviously they're going to be watching the share market, the volatility in the share market doesn't help their superannuation. Everyone benefits whether you're a self-funded retiree, whether you're a pensioner, whether you're an employer, you benefit from a stronger economy. So our measures have been broad based and that's what we've been focused on.
NEIL MITCHEL:
So there's nothing specific for self-funded retirees?
JOSH FRYDENBERG:
Look, we can't deal with every cohort within the economy. But what we can do is support the economy as a whole and self-funded retirees will benefit from that.
NEIL MITCHEL:
Would you look, and this has come from self-funded retirees, several people, of reassessing the superannuation rules, so that they don't have to take out a mandated amount?
JOSH FRYDENBERG:
Well, that is not on the table at the moment.
NEIL MITCHEL:
Ok.
JOSH FRYDENBERG:
I mean you could have a self-funded retiree on a Carer's Allowance and they'll be able to access the payments that have been provided to six and a half million Australians. So there will be some self-funded retirees who benefit directly, but overall people will benefit from having a stronger economy.
NEIL MITCHEL:
Something else from the audience, sole traders, anything for them?
JOSH FRYDENBERG:
Well again, sole traders will benefit from the instant asset write- off, the ability to go and purchase equipment for their businesses and more broadly from a stronger economy.
NEIL MITCHEL:
Casual workers, if they lose their jobs or they're isolated, any help for them?
JOSH FRYDENBERG:
Well, what we have said is their sickness allowance is available and that's at the Newstart rate and that we will waive that one week waiting period. So if there are casual workers who don't have entitlement to sick leave and they do need to go onto that Sickness Allowance, then there will not be that one week waiting period.
NEIL MITCHEL:
Could the GST be on the table for review? Cut it back a bit?
JOSH FRYDENBERG:
No.
NEIL MITCHEL:
Unequivocally?
JOSH FRYDENBERG:
It's not on the table. What we are focused on is the existing tax and transfer system and that's how we’re responding.
NEIL MITCHEL:
Talking about economic patriotism, if you talk to the banks about the possibility of a mortgage holiday or the big companies not insisting on immediate payment?
JOSH FRYDENBERG:
Well, I have been speaking to the banks about what measures they can take to support their customers and in fact, some of them have already announced different measures like some deferrals in interest rate payments or other parts of their financial commitments to the banks, so they are taking steps to help their customers and if people have an issue they should go and obviously speak to their bank manager.
NEIL MITCHEL:
You'll be interested in this, I know you're a cricket fan. We believe Cricket Australia's decided to close the doors to crowds at the next three One Day Internationals, Australia, New Zealand, Sydney today, one at the weekend, one in Tassie, no crowds.
JOSH FRYDENBERG:
Well, again, that will be decisions taken by individual organisations and sporting codes. I obviously noted what happened in the United States on the NBA and I've heard of sumo wrestling matches in Japan with no spectators. I mean, this is obviously developing quite significantly and rapidly around the world but it will be up to individual organisations to take the best possible medical advice and respond accordingly.
NEIL MITCHEL:
Thank you for your time. Now, I know you'll be surprised to hear me say this, we actually need politicians though and we need what you're doing. Have any special precautions been taken to protect the Cabinet?
JOSH FRYDENBERG:
No.
NEIL MITCHEL:
Should they be?
JOSH FRYDENBERG:
I don't think so. I think we go about our daily lives.
NEIL MITCHEL:
Thank you for your time.
JOSH FRYDENBERG:
Thank you.
NEIL MITCHEL:
Federal Treasurer Josh Frydenberg.