KARL STEFANOVIC:
Josh, good morning to you.
JOSH FRYDENBERG:
Good morning, Karl.
KARL STEFANOVIC:
It’s time to get back to work you’re saying. Are there actually jobs out there though?
JOSH FRYDENBERG:
There are, and the good news for the Australian economy was that yesterday 111,000 people got a job over the month of August. That saw the unemployment rate fall from 7.5 per cent down to 6.8 per cent. It was better than what the market was expecting and they are the cafe workers, they are the retail workers, they are the tradies who are coming back to work as the restrictions are eased, as the virus has got under control. There is still a long way to go and we know that the road ahead will be pretty bumpy, Karl, and that people are still doing it pretty tough. But we know also that there are positive signs across the economy and we have the plan to get people back to work.
SYLVIA JEFFREYS:
Figures show from the ANZ that there were only about 110,000 jobs advertised in August. There are a lot more than that, a lot more people looking for jobs. Is it really justified that they have to go and search for eight jobs a month? Is it possible to apply for that many jobs?
JOSH FRYDENBERG:
As you know, we put mutual obligation on hold through the worst of this virus, but outside of Victoria, the jobs are coming back and restrictions are being eased. And obviously we would like to see the borders open because that will create more jobs too. We are not putting the same mutual obligation requirements in Victoria, and that's obviously a reflection of the fact that there is still is a curfew in place and stage 4 restrictions. But outside of Victoria, it is a better economic environment. It's only appropriate when you’re providing Government support, that you expect in return mutual obligation and where there is an appropriate and suitable job on offer, that somebody takes it.
KARL STEFANOVIC:
You are going to wind back JobKeeper and you put some tighter rules around JobSeeker as we’ve just heard. It’s going to make a lot of people a little bit nervous though, isn't it?
JOSH FRYDENBERG:
Well, Karl, we have actually extended JobKeeper for six months. So originally it was legislated to go to the end of September, it's now going to the end of March. And at $101 billion, it’s the most significant support package any Australian Government has ever undertaken. And it is right now supporting more than 3.5 million Australians. So we did a review, and the review advised that there should be a two tiered payment and, of course, that it should transition down over time. But that money that is being spent on JobKeeper is still supporting people stay formally connected to their workplace, that's helping to keep people in jobs. But there are a lot of other economic supports that we are providing out there including cash flow boosts to businesses to help with their working capital, incentives to get people to invest and then to create jobs. We have provided $750 payments to millions of Australian pensioners. JobKeeper is just one aspect of a much more comprehensive range of economic measures that we have undertaken to help Australians get through this coronavirus.
SYLVIA JEFFREYS:
Treasurer, when will personal income tax cuts begin? You are bringing them forward, right?
JOSH FRYDENBERG:
We are considering the timing of those tax cuts in the context of the Budget. So you will have to tune in on the evening of October 6.
SYLVIA JEFFREYS:
Oh that's a tease.
JOSH FRYDENBERG:
Sorry. But we did take those tax cuts to the Australian people at the last election. There was a big contrast, as you know, between us and our political opponents. They were talking about tax increases, we were talking about tax decreases. We successfully legislated that through the Parliament. And in the context of the Budget and getting more people money into their pockets so that they can spend and help create jobs across the economy, we will consider the timing of those tax cuts in the context of this year's Budget.
KARL STEFANOVIC:
You know when you are promo-ing your own Budget, things are getting desperate.
JOSH FRYDENBERG:
Well, they are certainly not. Yesterday's job numbers were pretty encouraging, Karl. I have got a bigger smile on my face than otherwise I would have…
KARL STEFANOVIC:
I get, I get it, but still Victoria is in so much trouble.
JOSH FRYDENBERG:
They are.
KARL STEFANOVIC:
You know, they are in a terrible state there. And you’ve got parts of the country that seem to be going pretty well, and other parts grinding to a halt.
JOSH FRYDENBERG:
But in Victoria, we have supported Victorians to the tune of more than $28 billion, already. That's an enormous amount of money. And when it comes to JobKeeper, the expectation is that 60 per cent of people who are on JobKeeper in the December and in the March quarters will be from Victoria. So there will be more people on JobKeeper than from all the other states combined. And in that quarter of December, we are talking about $11 billion from the Federal Government going to support Victorians with JobKeeper. So we are standing by the Victorian people every step of this way, and what we would like to see is those restrictions eased as soon as possible in Victoria in a COVID safe way because once restrictions are eased, Karl, people can get back to work. And you’ve had plenty of business leaders on this program talking about how important it is to have that map out, that road out of these lockdowns to get people back to work.
KARL STEFANOVIC:
I am now busting with anticipation for Budget night.
SYLVIA JEFFREYS:
Can't wait. It’s like Christmas.
JOSH FRYDENBERG:
I’m sure I will be back here the next morning.