PETER RYAN:
This morning the Treasurer, Josh Frydenberg, told me the budget surplus is not at risk while calling for calm.
JOSH FRYDENBERG:
Well, we shouldn’t overreact to these developments but we should recognise that China’s currency moves and the increase in US tariffs are an unwanted escalation. We also need to be realistic that there is greater uncertainty in the global economic outlook.
PETER RYAN:
But do you see an actual trade war now rather than just trade tensions, given the escalation of China’s currency now being used as a weapon?
JOSH FRYDENBERG:
Well, these are concerning developments and our message is to continue to encourage cool heads to prevail and for differences between China and the US to be negotiated between the parties.
PETER RYAN:
You say it’s not time to panic because clearly the Australian share market has been at a record high just last week. But being at a high, it is easier to fall from that.
JOSH FRYDENBERG:
Right now, the Australian Government would like to see cool heads prevail and we’ll continue to take the necessary action domestically, including the tax cuts, to ensure that the economy continues to grow.
PETER RYAN:
With the market gyration, superannuation returns are a major concern, even though superannuation is a long-term investment. But clearly, people approaching retirement do have some reason to be concerned.
JOSH FRYDENBERG:
Superannuation returns have been averaging above 5 per cent over the last year and people who have had money in super, money in managed funds, have done much better than if they’ve had money in the bank.
PETER RYAN:
But if these tensions or this trade war between the US and China continues and Australia is caught in the middle, could this end up hurting your projections for a budget surplus?
JOSH FRYDENBERG:
We will still deliver a surplus next year. Absolutely determined to do that.