SABRA LANE :
Josh Frydenberg, good morning and welcome to the program.
JOSH FRYDENBERG :
Nice to be with you, Sabra.
SABRA LANE :
66,000 businesses have already registered for the JobKeeper payment. Does that surprise you?
JOSH FRYDENBERG :
No, it doesn’t. There’s a great deal of distress out there when it comes to Australian businesses and a great deal of uncertainty and anxiety when it comes to Australian employees. The announcement yesterday by the Prime Minister and I will give a great boost to the publics’ confidence, but importantly, will also maintain that connection between the employer and the employee which will help the economy bounce back stronger than ever on the other side of the coronavirus.
SABRA LANE :
Is this the limit of the Federal Government’s assistance or will there be more payments?
JOSH FRYDENBERG :
We’re always looking at new initiatives to deal with different aspects of this coronavirus crisis. But yesterday’s announcement will be hard to top.
SABRA LANE :
You might need to make timely and targeted payments to help some businesses, there is a suggestion out there today Virgin Australia?
JOSH FRYDENBERG :
I’ve seen that commentary and obviously I have been in close contact with the leaders of the business community, including in the aviation sector, Paul Scurrah and Alan Joyce. But we have already illustrated our commitment to having a viable and sustainable aviation sector with more than $700 million in fees being waived for the aviation sector and we recognise how important it is to the Australian economy for the transport of both goods and people. So we’ll continue that dialogue with key stakeholders.
SABRA LANE :
Back to the JobKeeper payments, many casuals get their jobs through employment agencies, so technically they’re not employees at the places where they work. Are they covered by this subsidy?
JOSH FRYDENBERG :
We have been very clear when it comes to casuals and this reflects what is in the Fair Work Act, where casuals have been with a particular business for 12 months or more, then they will come under this JobKeeper scheme. But there will be other casual workers who will not and then they will have eligibility for the JobSeeker payment and the JobSeeker coronavirus supplement which we announced earlier in this process.
SABRA LANE :
You won’t be able to save everyone.
JOSH FRYDENBERG :
We certainly can’t save every employee or every employer. But what we are determined to do is ensure that the Australian economy remains resilient and strong and that Australians remain in a job and businesses remain in business. And yesterday’s announcement built on the more than $180 billion of other initiatives that we have announced, including support for businesses with cash payments of up to $100,000, wage subsidies for 117,000 apprentices, as well as changes to the investment incentives and, of course, effectively doubling of the old Newstart payment which is now known as the JobSeeker payment.
SABRA LANE :
The Federal Government has never spent money like this before, including Reserve Bank measures, it’s about 16 per cent of GDP. That indicates you expect a massive contraction in the economy in the months ahead. How big a contraction should people be bracing for?
JOSH FRYDENBERG :
You’re right to say it’s enormous, the amount of money being spent. Certainly, when I took on the Treasury portfolio I was hoping for different times and different measures. But, these are really extraordinary times and that’s why we have responded the way we have. And you’re seeing stimulus packages from countries right around the world because this is unprecedented in scope. So we will continue to do what is necessary. The Australian people know that their Government has their back and while the previous weeks have been tough, I think the weeks ahead will be tougher but I think yesterday’s announcement will support many for the period ahead.
SABRA LANE :
Many thousands of workers will be grateful for the payment but they’ll also be worried about the legacy left to their kids and grandkids to pay it off. How worried are you by that?
JOSH FRYDENBERG :
Well, I’m obviously very conscious of the debt burden that will be shouldered by the generations to come. But that is why having a responsible fiscal position is so important. We must ensure that we can continue to provide the support to the public at this particular time and we will obviously manage the budget at the same time as well.
SABRA LANE :
Josh Frydenberg, we will leave it there.
JOSH FRYDENBERG :
Thank you.