PETER STEFANOVIC:
Treasurer, good to see you. Good morning to you. So you've got those numbers now starting to show a downward trend. When do you expect the post Omicron recovery will begin?
JOSH FRYDENBERG:
Well, the medical experts say that we're approaching the peak of Omicron and as you referred in your introduction, Pete, we've seen ICU admissions and numbers of patients start to decline, and I don't want to overemphasise it. It's a start in New South Wales and in Victoria. But we do know that Omicron, while highly transmissible, is 75 per cent less severe than other variants, in particular Delta. The economy has shown itself to be remarkably resilient. We saw unemployment numbers, which were themselves very very strong, with the unemployment rate coming down to 4.2 per cent, the lowest in more than 13 years. We know there are 1.7 million more Australians who are now in work since the Coalition came to Government. Here in Queensland, where I am today, 350,000 more people are in work since the Coalition have come to Government. We've also maintained our AAA credit rating. We've seen a strong pipeline of investment despite the recession. And, of course, households and businesses have accumulated more than $300 billion on their balance sheets that was not there at the start of the pandemic, that's money that will be spent across the economy. So there are challenges, both on the health front and in terms of supply chains, but we shouldn't be looking at it fearful, we should be looking at the current circumstances with optimism and confidence about the year ahead.
PETER STEFANOVIC:
Okay, it's not all rosy, as you mentioned there. You've got house prices continuing to head north. You've got fuel, cost of living, all on the up. How much could high inflation and possible rate rises hurt consumers?
JOSH FRYDENBERG:
Well, inflation is now within that target band that the Reserve Bank set of 2 to 3 per cent for the first time since 2015. Now, some of that pressure is coming from global supply chains, whether it's around steel or timber, and of course, petrol prices as well. But when it comes to cost of living, we know that today a family with a $500,000 mortgage is $600 a month better off than they were under Labor. We know with electricity prices that they've come down by 10 per cent since December 2018, whereas they doubled, they went up 100 per cent under Labor. We also know that when it comes to fuel prices, they were higher under Labor as well. Childcare prices were higher under Labor as well. So there is challenges for Australian families, but we're putting more money into the pockets of Australian workers with tax cuts. We've delivered more than $30 billion, Pete, of tax cuts to more than 11 million Australians. And today there's new data showing that the younger Australians, 15 to 24, 25 to 34, have received a very strong and large proportion of those tax cuts. And that is going to help them meet some of the cost of living pressures.
PETER STEFANOVIC:
Yes, some. But it won't be enough for many to be able to afford a home, though, when we're talking about the younger age groups.
JOSH FRYDENBERG:
Well, that's why we've been putting programmes in place like HomeBuilder, which have not only helped create jobs for people on the tools and in the long supply chains of the construction sector but to enable people to get into their home. There are now 150,000 people that over the last year have been coming into their home with construction, whereas the longer‑term average has been just $100,000. So more people are getting into a home, more first home buyers are getting into a home, and that is a good thing as a result of the programmes and the initiatives that the Morrison Government has undertaken.
PETER STEFANOVIC:
Okay. Pharmacies have warned this morning, Treasurer, that there just aren't enough rapid tests available for concession card holders from today. Is this another example that not enough tests were ordered?
JOSH FRYDENBERG:
Well, the first thing to say is we have right through this pandemic, helped fund and secure tests. With the PCR tests, we saw more than 53 million delivered and that cost the Commonwealth $2.5 billion dollars, and we picked up the full cost of those tests through Medicare or on a 50‑50 basis with the states through the state clinics. Now we've got more than 200 million RAT tests that are on order and we've seen 7 million arrive into Victoria in just recent weeks. We've provided more than 6 million to the aged care sector. That's obviously a vulnerable cohort and we're providing 10 million of those RAT tests to the states through those clinics. Now, if anyone watching your programme this morning Pete, is symptomatic or is a designated close contact, they can go to one of those state clinics, get a RAT test, get a PCR test at no cost to them. The health experts say that RAT tests are not a universal screening tool that must be used in every single workplace. People who need a test can go and get one. And for those concession cardholders, more than 6 million of them, pensioners and others on income support, we're going 50‑50 with the states to provide up to ten tests over this three month period.
PETER STEFANOVIC:
But there, I guess there's still a problem that the Pharmacy Guild is warning that if they go to one of the smaller chemists this morning to go and get one, they might not find one.
JOSH FRYDENBERG:
Well, there are a lot of pharmacies that are participating in the early stages of the programme. And as more supply comes onboard, then there will be more pharmacies will also come on board with this programme. But every country, Pete, is facing supply chain pressures when it comes to RAT tests. They're one part of a broader arsenal that we have in place to help defend Australians against the virus. And we have one of the highest vaccination rates in the world, one of the lowest mortality rates in the world and one of the strongest economic recoveries in the world. And that's why Australians can look at the glass and know that it's more than half full.
PETER STEFANOVIC:
Treasurer Josh Frydenberg, thanks for your time as always. Talk to you soon.
JOSH FRYDENBERG:
My pleasure.