PETER STEFANOVIC:
Treasurer, good to see you, thanks for your time, as always. So pre‑election budget around the corner. Are you going to extend the tax offset for low and middle‑income earners?
JOSH FRYDENBERG:
Well, as you know, our track record has been to cut taxes at every opportunity. That’s what we’ve done for families, that’s what we’ve done for small businesses, and now, you know, we continue to look for opportunities. Just, indeed, last week I introduced legislation into the parliament to establish what is called a patent box to encourage innovation in the medical and the biotech sectors where they pay a concessional company tax rate of just 17 cents in the dollar. But we’ve got new data out today with Treasury analysis and ATO analysis that show young women in particular have been the greatest beneficiaries of our tax cuts with, on average, $3,130 less tax being paid by some 5 million women who have got the benefit of our tax cuts. And particularly for those 24 and under, they’re seeing 20 per cent less tax being paid under the Coalition compared to what it was under the Labor Party. So that’s a very big difference. That’s more money into people’s pockets. That’s encouraging effort and that’s rewarding aspiration. That’s very consistent, Pete, with the Coalition’s values.
PETER STEFANOVIC:
Okay, but on to that tax offset which has been there for the last two budget now, is that going to extend into a third budget?
JOSH FRYDENBERG:
Well, I’m not going to give you a running commentary on what will or will not be in the upcoming budget. What we do know, though, for that budget is we need to lock in the recovery. We’ve seen a very strong bounce back in the Australian economy, particularly in our labour market with the unemployment rate at 4.2 per cent. Don’t forget, it was the Labor Party and Jim Chalmers in particular who said the biggest single test of the Morrison government’s management of the recession will be what happens to jobs and the unemployment rate. And now we’re at a 13‑year low with unemployment, under employment and youth unemployment all lower under the Coalition compared to under the Labor Party.
PETER STEFANOVIC:
Okay, but on this now, we’ve spoken in the last couple of weeks about budget repair. Now, unemployment going so well and the economy as a whole going so well, is this an expense that is needed, in your opinion?
JOSH FRYDENBERG:
Well, again, I don’t see tax cuts as an expense. What I do see them as strengthening the economy and allowing Australians to keep more of what they earn.
PETER STEFANOVIC:
Okay so you’ll extend it?
JOSH FRYDENBERG:
Well, Pete, let’s wait and see what’s in the budget. But you’ve touched on what will be a very, very important battle line in the upcoming election. You see, we have a Leader of the Opposition who’s trying to sneak into government trying a small target strategy. But we know he has stood for a carbon tax, a mining tax, a congestion tax, a retirees tax, a housing tax, a family business tax, a higher superannuation tax, higher income taxes and, of course, death duties and wealth taxes and an inheritance tax. That’s the most damning of all. Now he wants you to forget the past, but how can Australians forget what he was advocating just a few years ago going into the election? We’re not going to let him get away with it. We’re going to shine a very bright light onto Albanese’s history, into his policies that he’s supported, because Australians need to understand this is a choice this upcoming election between a Liberal‑National coalition and a Labor‑Greens coalition. So don’t listen to the dismissals from Anthony Albanese that he won’t partner with the Greens. That is his past practice. He will.
PETER STEFANOVIC:
He’s already said though that he won’t be partnering up with fringe groups.
JOSH FRYDENBERG:
Well, why would you believe that when he was part of a government, a senior member of the government, that joined with the Greens? And we know that Chris Bowen at the time said he was very happy to partner with the Greens. We know that Wayne Swan, then Treasurer, said he was happy for it to be known as a coalition with the Greens. You see, Labor, if they are in a position where they’re desperate to get on the treasury benches will of course join with the Greens and secure their vote. Adam Bandt’s already calling his members as shadow ministers. And we know that across Lake Burley Griffin here, just across the road effectively, we’ve got a Labor‑Greens coalition in government with cabinet ministers from the Greens in the ACT. So look at what they’ve done in the past. Look at the alignment of policies. If you go to the Greens website, they’re in favour of a housing tax, they’re in favour of inheritance taxes, they’re in favour of carbon taxes and mining taxes and high taxes on super and changing the marginal tax rates. That’s basically a Labor wish list when it comes to tax. So the alignment of policy and a look at the very recent past give you a strong indication that the Labor Party and the Greens are in coalition.
PETER STEFANOVIC:
Just one more on the low to middle‑income tax offset – I know you’re a bit sheepish on what you want to say right now, but – is it true that you’re wedged on this one because it’s either a tax increase or an expense that adds to inflationary pressures?
JOSH FRYDENBERG:
Well, the first thing to say is LMITO was not a permanent feature of the tax system when we introduced it, and I said as much at the time in the budget. So it’s like, you know, when Kevin Rudd was announcing individual payments for households during the GFC or when we announced our $750 payments to pensioners and carers and veterans, when that didn’t continue people didn’t say that you were cutting payments to those on income support. They were taken based on the economic environment at the time. Like I said, I’m not going to say what is in or what is not in the upcoming budget.
PETER STEFANOVIC:
Sounds like you’re going to cut it.
JOSH FRYDENBERG:
But LMITO was never a permanent feature of this system.
PETER STEFANOVIC:
Sounds like you’re going to cut it.
JOSH FRYDENBERG:
Well, again, you can jump to whatever conclusion you like. What I’m saying is we haven’t made any final decision yet. I’m not going to reveal which way we may be leaning in today’s program.
PETER STEFANOVIC:
Okay.
JOSH FRYDENBERG:
But I also want to point out to you that we have legislated the most significant tax reform in decades with the abolition of a whole tax bracket – the 37 cents in the dollar tax bracket. Now that only comes in when stage 3 comes in. Now, again, Anthony Albanese and Jim Chalmers will have you believe they’ll just mirror the Coalition’s policy. But Jim Chalmers called our stage 3 tax cuts offensive. Now he wants us to believe that he supports them. Anthony Albanese called our stage 3 tax cuts being for the top end of town. Now he wants us to believe that he supports them. I don’t think anyone can believe Anthony Albanese.
PETER STEFANOVIC:
Josh, do you play the ukulele?
JOSH FRYDENBERG:
No. Very bad chopsticks on the piano is about as good as I get.
PETER STEFANOVIC:
Has Scott Morrison played a tune for you at The Lodge at all?
JOSH FRYDENBERG:
No. We sort of confine our entertainment to the billiard table.
PETER STEFANOVIC:
And who wins?
JOSH FRYDENBERG:
Well, when I stayed there the other month he took the honours, and more recently I did.
PETER STEFANOVIC:
Okay.
JOSH FRYDENBERG:
So I wouldn’t be as bold to say we’re even, but, you know, it’s competitive, put it like that.
PETER STEFANOVIC:
All right, good one. Josh Frydenberg, thanks for your time, as always.