PAUL KENNEDY:
Treasurer, thanks for your time this morning.
JOSH FRYDENBERG:
Good to be with you.
PAUL KENNEDY:
Five million people, $750 each, where do you hope that money is spent?
JOSH FRYDENBERG:
Across the economy, obviously it's up to those who receive the money as to how they spend it. And what we do know from previous experience is some of that money goes to discretionary items like food and grocery bills, rent and other household items, and at the same time, some save that money and pay down their debt. So five million Australians will get a $750 cash payment at around a cost of $4 billion to the Commonwealth Government. It's the second such cash payment that we have made, the earlier one was from March and people will get the money starting this week.
PAUL KENNEDY:
Will there be a third, or is this it for this type of stimulus?
JOSH FRYDENBERG:
We’ve got plans for these two, we haven’t got plans for a third at this stage. What we do know is that this cash payment is part of a comprehensive suite of measures that we have announced, some $260 billion of payments and support either through the Reserve Bank or directly to businesses or households to help meet some of the incurred costs as a result of COVID-19.
PAUL KENNEDY:
A couple of questions on JobKeeper, and we await your announcements on July 23. But before that happens, have businesses that reported a slump in April and therefore became entitled for JobKeeper, have they been re-tested?
JOSH FRYDENBERG:
They haven't.
PAUL KENNEDY:
They haven’t, so some in shopping centres, perhaps, may have even recovered by now, but are still getting JobKeeper. Have you checked that?
JOSH FRYDENBERG:
Yes, that has been one of the features of the program is you haven't required a re-testing over the course of these six months. So you’re right, some businesses may have recovered. But obviously there's been a hit overall to the economy and a number of businesses have continued to do it tough. And as we consider the next phase of support, and we've already announced that we will be doing another phase of income support, and announcing that on the 23rd, that that's one of the considerations we’ll take into account.
PAUL KENNEDY:
So are you going to tighten it before the end of September, do you think?
JOSH FRYDENBERG:
Before the end of September you’ll unlikely see any changes. What we're focused on is obviously from that period onwards.
PAUL KENNEDY:
On the other end of the spectrum, how many businesses, it must be hard to tell but I’m sure you’re looking at it, how many businesses are in danger of complete collapse beyond that support that you were talking about?
JOSH FRYDENBERG:
Well, that's obviously difficult to tell now because we've got one country and two stages. I mean, what we're seeing in New South Wales, Queensland, and other states, is the opening up of the economy after that initial spike in March, and what we're seeing in Victoria has been the closing down of the economy with the six-week lockdown as a reflection of the spike of cases that we’ve had here in Victoria. So we'll continue to watch the situation closely, respond with the cash payments that are currently going out to businesses and households. But there will be some businesses that don't survive on the other side.
PAUL KENNEDY:
Just quickly on that, on Victoria, what have you noticed since the lockdown, that businesses may need some extra help immediately?
JOSH FRYDENBERG:
Well what we’ve said Paul is that we won’t go for a state-specific package of measures. What we'll focus on is Australia’s national, nationwide support measures. And obviously they can be targeted to those businesses and households who need that support most, and that has been the approach that we've used going into this crisis and that will be the approach that will continue through this crisis.
PAUL KENNEDY:
More generally, I note that more than 100 people were fined for breaches of restrictions in Victoria. You’re in Victoria, are people taking this second lockdown seriously enough from what you’ve seen?
JOSH FRYDENBERG:
Yes they are, and the Premier provided guidance, he said wear a mask if you can't effectively socially distance. And if you're in a car, for example, that was one time to wear it. I wore a mask in the car the other day, but when I was walking with my family on the street, and able to effectively social distance I didn't need a mask and when I was on the streets yesterday I did see some people with masks and others without them. But hopefully everyone is following the requirements that we now have in place because it's a deadly serious game.
PAUL KENNEDY:
What message do you think the Prime Minister was giving Australians by being at the football on the weekend?
JOSH FRYDENBERG:
Well, again, that reflected the fact that New South Wales and Victoria are at different stages. And good on him for being passionate about his country and about his footy. I'd love to go to watch the Storm or the Carlton Football Club but I’d just have to travel interstate Paul, as you know, to go and see them. The reality is in New South Wales you can, or Queensland you can go and watch the footy. And I think it just reflects the reality that we're in and I note that even the Opposition Leader didn't criticise the Prime Minister for doing that and I bet you he would of if he thought there was a political opportunity in it, and I think that reflects where the public is at.
PAUL KENNEDY:
Actually I just wanted to ask you on that, the partisanship I think has diminished federally, I mentioned that on the program last week, and at times impressively so. Perhaps not so with the Opposition in the Liberal Party in Victoria which continues to attack Dan Andrews. Are you comfortable with the role the Opposition is playing in Victoria?
JOSH FRYDENBERG:
Well, firstly, I challenge the premise of your question there. I think the Federal Opposition has been, you know, barking criticisms every single day and been hyper-partisan at many times through this crisis. As you know, the Prime Minister and I and the Health Minister, we have worked constructively with the Victorian Government and supported them through this very difficult time...
PAUL KENNEDY:
I know, that was my point. I was just asking you about the Victorian Liberal Party that’s all. They were calling him Dictator for a long time and challenging the reopening of his measures to keep the economy as it was, and then they were pushing him to reopen.
JOSH FRYDENBERG:
Well, look they can point out legitimately mistakes. That's absolutely fair to do so and it's important that we don't repeat mistakes, especially those that we've seen in Victoria. But what we're focused on as a Federal Government is going forward, doing it positively, doing it constructively, taking the country with us and I think that’s what we’ve done to date and that’s what we’ll do going forward.
PAUL KENNEDY:
Well, leadership continues to be a big discussion around the country. Thanks for your views on it this morning. And good luck with the $750. Josh Frydenberg.
JOSH FRYDENBERG:
Thanks Paul.