SAMANTHA ARMYTAGE:
Treasurer, good morning to you.
JOSH FRYDENBERG:
Nice to be with you.
SAMANTHA ARMYTAGE:
Business welcomed the extension yesterday and the security it brings for at least a few more months. But as the scheme is wound back, do you expect more businesses to shut their doors?
JOSH FRYDENBERG:
There certainly will be some businesses that won't survive the coronavirus crisis but the majority certainly will, and they might be struggling today but they will be viable on the other side. And that’s why we are continuing this vital economic support which has been a lifeline for some 960,000 businesses employing 3.5 million people. But what we’re seeing outside of Victoria is the economy starting to open up, restrictions are being eased and people are getting back into work. And last week, we saw the jobs numbers which showed 210,000 people found a job over the course of the month of June; 60 per cent of whom were women, 50 per cent were young people and that defied market expectations.
SAMANTHA ARMYTAGE:
Okay, so there are jobs out there, that is good news. Treasury estimates that by the March quarter there will be about one million people still on JobKeeper. Now right now there’s 3.5 million. So as you wind the scheme back, how many of those people do you expect to move to JobSeeker?
JOSH FRYDENBERG:
Well some will, but the vast majority will not. The vast majority will be working in businesses that while they are on JobKeeper today, will not need it in the months ahead. And we’re starting to see businesses open right across the country, whether it’s cafes and restaurants or whether it’s gyms. Victoria is a different case. Victoria’s obviously seeing more than five million people in lockdown for a number of weeks to come. And the program that we have announced with JobKeeper is demand driven, so it takes into account circumstances like those in Victoria to give a particular helping hand to those who may be doing it pretty tough.
SAMANTHA ARMYTAGE:
Okay, so are there more reviews to come on this? A little bit more tinkering. There are some situations which seem slightly unfair. For example, part-time workers on 20 hours per fortnight on JobKeeper are paid less, $65 less, than people on welfare.
JOSH FRYDENBERG:
Because that doesn't take into account that many people will actually be working either a second job or indeed some more hours on a casual basis. So what we have done is set up a tiered payment to take into account the fact that under the flat $1,500 payment, which exists today, around a quarter of those people who are getting those payments are getting more than they were in the pre-COVID period. So what we’ve done with the tiered payment is to better reflect those pre-COVID incomes, because of course, with tax payers’ money, we want to make sure it gets to those who need it most.
SAMANTHA ARMYTAGE:
Okay. From the end of September, anyone on JobSeeker will be required to apply for four jobs a month, do you think that’s realistic? Are there the jobs out there that they can do that?
JOSH FRYDENBERG:
Well there are jobs coming back, and that’s Treasury’s numbers and that’s also what we saw with the most recent ABS data. But seeking up to four job searches a month, I don't think is unreasonable. Engaging with your employment service provider is not unreasonable. And we want to give the public who are on JobSeeker the best possible chance of getting into a job. And by giving them this professional advice, we can do so. The Prime Minister has also announced a couple of billion dollars for additional training and skills programs. And that’s going to be a great help to people who may not be in employment today because we understand they may need to reskill and retrain to find work and the Government is there to help them do that.
SAMANTHA ARMYTAGE:
Okay, Treasurer Josh Frydenberg, great to chat. Thank you.
JOSH FRYDENBERG:
Thank you.