PETER STEFANOVIC:
Treasurer, good to see you. Thanks so much for joining us.
JOSH FRYDENBERG:
Nice to be with you.
PETER STEFANOVIC:
First of all, what are these figures telling you and how might that change your forecasts when it comes to how many people are out of work in the country?
JOSH FRYDENBERG:
As you know Pete, COVID-19 has been a wrecking ball through the global economy and here in Australia, the economic cost has been immense and we’ve really now seen the country develop into dealing with COVID-19 in two different stages; you’ve got Victoria and you’ve got the rest. Outside of Victoria, jobs are starting to come back, restrictions are eased and people are getting back to work. We know that from the 1.3 million people who either lost their job or had their hours reduced down to zero from the start of the crisis, around 700,000 are now back at work. We’ve seen particularly strong growth in New South Wales with 315,000 people getting back to work, as well as strong growth in Tasmania, Western Australia and across other states. The situation obviously in Victoria is quite different. It is Treasury’s forecast that up to 400,000 people will either lose their job or see their hours reduced to zero as a result of the restrictions that have now been imposed. Our focus as a Government is to assist Victoria, stem the tide of new cases, flatten that curve and then gradually ease the restrictions. That’s what we’re doing with the deployment of around 1,700 Australian Defence Force personnel, other specialist medical teams, as well as, obviously, the overwhelming economic support that we’ve provided to Victoria with the changes to JobKeeper, with the paid pandemic leave, as well as the additional funding for childcare.
PETER STEFANOVIC:
Based on those figures, particularly when it comes to Victoria, is it too soon to start winding back JobKeeper and JobSeeker?
JOSH FRYDENBERG:
We’ve actually extended JobKeeper and JobSeeker…
PETER STEFANOVIC:
But from the end of next month, it is coming back though.
JOSH FRYDENBERG:
It is a transition downwards over time but we’ve extended the program which was initially for six months and we’ve extended it for twelve months, so it will go out till the end of March. Importantly, this is going to be significantly supporting many businesses in sectors that continue to do it tough. I mean, the estimate is that nearly 4 million Australian workers will be on JobKeeper over the course of the September quarter and we heard recently from testimony to the Parliament from Reserve Bank Governor, Phil Lowe, that JobKeeper is a remarkable program and that without it unemployment would be much higher. Indeed, it is Treasury’s analysis that JobKeeper, together with our other economic support measures, have helped save 700,000 jobs. At $101 billion Pete, JobKeeper is the single largest economic support program that Australia has ever seen.
PETER STEFANOVIC:
You’ll be still pressing ahead with those changes moving JobKeeper to $1,500 a fortnight down to $1,200 and the changes to JobSeeker as well. Will that still be happening?
JOSH FRYDENBERG:
Absolutely, and we will be introducing legislation to the Parliament this week to take that effect with respect for JobKeeper. But our absolute focus is on getting people back to work. That’s our JobMaker plan, that’s seen the additional investment in skills and training packages, some 340,000 positions, bringing forward around $10 billion worth of infrastructure spending, providing investment incentives with the extension of the instant asset write off and the 50 per cent accelerated depreciation allowance to get greater economic activity. Of course the work that we’re doing to get more flexible labour markets, more flexible workplaces, allowing employers and employees to negotiate over duties, hours and location of work. That’s all critically important to the economic recovery.
PETER STEFANOVIC:
Treasurer, allegations of branch stacking aired on 60 Minutes last night, it also involved your Assistant Treasurer, Michael Sukkar, should he stand down?
JOSH FRYDENBERG:
No he shouldn’t. I’ve seen the program and with respect to the allegations against Michael Sukkar and Kevin Andrews, both have released a statement and have made it very clear that they reject those allegations but they’ve also referred those matters to the Department of Finance for review and that’s appropriate. But I did see that program, many Liberals will be shocked and very concerned by the behaviour and by the language that was used. And I’ve spoken, since that program, with the President of the Victorian Division, with the State Director in Victoria as well as with the Opposition Leader in Victoria and the Liberal Party will be dealing with those matters internally.
PETER STEFANOVIC:
You’re a Victorian, have you seen any evidence of branch stacking?
JOSH FRYDENBERG:
Look, I obviously saw the program last night with the allegations that were made…
PETER STEFANOVIC:
Outside the program though?
JOSH FRYDENBERG:
Well again, I’ve seen thousands of Liberal Party members who care deeply about our Party, who signed up to our Party, not because they’re a member of a religious organisation, but because they share the values of its founder, Sir Robert Menzies and the many other great men and women who helped establish the most successful political party in Australia’s history. The Victorian Division, Pete, is particularly proud. It’s not only the Division that produced Sir Robert Menzies, Jeff Kennett, Peter Costello, Dame Margaret Guilfoyle, David Kemp and many others, but it’s a division which is at the heart of the Liberal Party. My experience with the Liberal Party is that people have joined the Party because they shared those values. That’s been the experience in the past and that should be the conduct into the future.
PETER STEFANOVIC:
Should there be a Federal Review of the Victorian Liberal Party?
JOSH FRYDENBERG:
Well again, these matters are being dealt with internally by the Liberal Party with the Victorian Division conducting its own internal processes.
PETER STEFANOVIC:
Okay. Treasurer Josh Frydenberg, good to see you out of hotel quarantine, hope it wasn’t too bad for you?
JOSH FRYDENBERG:
No, good to see you and all the very best for your viewers.