JOSH FRYDENBERG:
Tonight the Australian Parliament was determined, was decisive and was united. The package of economic measures that were passed by the Parliament tonight were the most significant to support the Australian community and the Australian economy since wartime. These measures will support households and cushion the blow for what are the inevitable economic challenges that we will face as a nation in the period ahead. And they will continue to support business, because the best way to keep Australians in jobs is to keep businesses in business. Measures that include a new coronavirus supplement of $550; changes to the deeming rates to reflect recent interest rate cuts and changes to the draw down rates to give retirees more control over their savings; $750 cash payments, the first going to more than 6.5 million Australians and the second going to more than 5 million Australians; and early access to superannuation, so that Australians can get access to their own money, tax free, to help them where they need it most, up to $10,000 this financial year and up to $10,000 next financial year. And for businesses; cash payments for hundreds of thousands of businesses, at a minimum of $20,000 and up to $100,000 to allow them to keep their staff on and to meet the costs, even though their customers may not be coming through the door. We are risk sharing with the banks in providing up to $40 billion worth of new loans to small and medium sized businesses, three year loans up to $250,000 with no interest payments in the first six months. This is about building a bridge to the recovery. And support for Australian businesses who employ apprentices, 117,000 apprentices will get a 50 per cent wage subsidy through the measures that this Parliament has passed. And the instant asset write off being extended from $30,000 to $150,000 and now being available to businesses and companies with a turnover of not $50 million or less, but now $500 million or less. And accelerated depreciation at a rate of 50 per cent, again for businesses with a turnover of up to $500 million and that will be available until June 30 2021. These measures, together with a new regulatory shield that we are providing to directors and to businesses by changing insolvency and bankruptcy laws and the Corporations Act, will help get these businesses to the other side by trading through this very, very difficult period.
We know that the economic situation has deteriorated as every day passes. And we know that the economic shock from the coronavirus and its impact will be deeper, will be wider and will be longer than first thought. But tonight, the Australian Parliament has acted in the best interests of the casuals and the sole traders and the retirees and those on income support and the Australian students who are going to need these extra funds to get them through this very difficult period. The Australian people can be reassured that tonight their Parliament reached across the political divide and passed the most significant set of measures since wartime. We face an enemy that is under no flag and that has no face. It’s an enemy that we cannot see. But we know that we must deploy every weapon in our arsenal to defeat it. So together with the health measures that we have introduced, these economic measures are designed to support the Australian people at this difficult time. We know that much is already being done but there is a lot more to do and we will continue to do it.
QUESTION:
Treasurer, can you explain in really simple terms what the amendment passed tonight will mean?
JOSH FRYDENBERG:
What it means is that the students who are receiving Abstudy or Austudy or Youth Allowance students will now get access to the coronavirus supplement of $550. But also these amendments will give more flexibility to the Minister for Families and Social Services to make necessary changes by regulation as required, because we know that the situation with the virus continues to evolve and as a result, changes may need to take place in the period ahead.
QUESTION:
So that is a quarter of a million people between those three payments, or almost, so how much is that going to cost the budget?
JOSH FRYDENBERG:
$1.7 billion.
QUESTION:
And where is that money coming from? Is that on top of the $40 billion that is the interim amount that the Finance Minister has access to?
JOSH FRYDENBERG:
This money is on top of the $66 billion package. Obviously, this is money that must be spent in the period ahead. As you know, the measures that we’ve announced are for six months and obviously can be extended depending on the time as required. But the Prime Minister has prepared the nation for the challenges that are ahead for at least six months or more. So those costings are based on that period of time.
QUESTION:
So, just to be clear, the $40 billion that the Finance Minister now has at his discretion…
JOSH FRYDENBERG:
Still has that discretion for $40 billion to spend as required for urgent matters that may be required. As you know, we also passed Appropriation Bills tonight which are also very significant; about $83 billion worth of funding through those Appropriation Bills for the next seven months.
QUESTION:
Is there anything you can give as an example when you say what that $40 billion might be used for…
JOSH FRYDENBERG:
It could be used for extra health expenditure and, obviously, there is going to be a continued need to spend more money on health. As you know, we already have expended a significant amount of additional funds and when it comes to the health of Australians, there is no more important priority at this time.
QUESTION:
Can I just ask you on the question of urgency, you’ve said tonight you’re fighting an evil that you can’t see, but these payments don’t come in until the end of April. Why couldn’t this have been pushed forward, isn’t this urgent today? You’re seeing the unemployment queues…
JOSH FRYDENBERG:
Well let me make very clear; 6.5 million people will get a $750 payment from the 31st of March. So that is very soon. We also know that we have waived the waiting periods for people who are going on to the welfare system. So our move is designed to enhance the safety net, but people can go online, they don’t need to line up outside of Centrelink, they can go online electronically and make their applications. And if people are already in the welfare system, then these additional payments will make their way automatically.
QUESTION:
It could be the risk of these people growing into their new incomes, are you definitely going to be taking it away (inaudible) down the track?
JOSH FRYDENBERG:
Obviously, we have made it very clear that our principles around both the first and the second package are that the measures are temporary, the measures are targeted, the measures are proportionate, the measures are scalable and the measures use the existing tax and transfer system. We have not sought to redesign the programs and come up with new ones. What we have sought to do is move with haste by using the existing systems.
QUESTION:
Treasurer, we’ve heard some incredible figures about potential job losses spoken about today, in the terms of millions, and some suggestions more than two million projected. Can you comment on whether that is a possibility at this point?
JOSH FRYDENBERG:
When we costed this particular new initiative around the Coronavirus Supplement, it was an estimate that perhaps up to a million people would get this new supplement on top of those who are already on Newstart. Over 700,000 are already on Newstart, now known as the Jobseeker Payment, and what we’re talking about here potentially is a million new recipients of this Jobseeker Coronavirus Supplement. But I want to make it very clear, that people who may be receiving this $550 may not be unemployed. They may be casuals or sole traders who have had their hours reduced or their income reduced as a result of the coronavirus. We have been much more flexible around the mutual obligation requirements, so that if you’re a sole trader and you’ve seen your income come below $1,086 a fortnight, then you will be able to access that $550 payment but you may be able to still work and earn some income through your normal job.
QUESTION:
Just to clarify, that made the allowance for 1.75 million, is that correct?
JOSH FRYDENBERG:
We’ve made the allowance that at least 1.75 million people will be likely to receive that new Coronavirus Supplement. But as you know, this is a dramatically evolving situation and we know that it’s very difficult out there and when you see the lines as we saw today and the images we saw today, that was very sad. But we also know that the Australian Government has delivered the first balanced budget in 11 years and got the books back on track which has given us the financial firepower to respond as required at this time of need. In fact, earlier tonight and after this press conference, I will go back to this video conference call with the G20 Finance Ministers’, with leading Finance Ministers’ from around the world. We’ve heard from the International Monetary Fund and we’ve heard from the US Federal Reserve and we’ve heard from the China Central Bank and many countries are doing it very tough at the moment, but what we do know is that the Australian Government has got the financial flexibility to respond and that’s what we are doing with $189 billion of new funding being injected into the economy in our announcements in just the last ten days. We’ve combined with the Reserve Bank of Australia, with the commercial banks of Australia and we’re deploying every possible tool that we have to support jobs and to support businesses.
QUESTION:
So two million unemployed is not inconceivable to you at this point?
JOSH FRYDENBERG:
Look, as I said up to a million new people could go onto the Coronavirus Supplement but not all of them would be unemployed. They may find themselves, as many Australians will, being impacted by the spread of the coronavirus, but they’re still able to get some work. We know that not every sector has been equally impacted, for example the mining sector continues to be strong, we’ve seen plenty of people shopping at our supermarkets or going to our chemists. But let’s not understate the significance of the coronavirus on the economy as a whole. It’s very severe, it has deteriorated. The only way the coronavirus and its economic impact will be stopped will be when we get a vaccine. And that’s not going to be found by our politicians or our public servants or our bankers. It’s going to be found by our medical researchers, our doctors and our scientists. So they’re the people who are on the frontline. They’re the people who can find the vaccine, we pray, we hope, and once that is found then the economy and the society will bounce back stronger than ever.
QUESTION:
Treasurer, what about temporary migrants, what’s going to happen to them? 1.5 million people are on temporary visas, will they all be able to access some kind of payment? And just a double header if I may also, is Parliament really not going to sit until August or could there be some provision made for teleconferencing, virtual sitting, some kind of democratic process in the interim?
JOSH FRYDENBERG:
Well firstly, our focus has been on permanent residents and those on the pathway to citizenship and we’ve made allowances for them. When it comes to the sitting of the Parliament, as you know, a new sitting calendar was passed through the Parliament tonight. But there will be circumstances no doubt, where we will continue to need to act through this place. And as the Prime Minister and the Leader of Government Business has made clear there are potential arrangements that could be made in that situation. But what I can tell you is that the Government, under Scott Morrison, is working day and night to ensure that the Australian people get the support they need, whether that’s the health support, the economic support, or the other important work being undertaken by our relevant departments. And I do want to pay credit tonight to our senior public servants and indeed our junior public servants, people who have worked so hard to help put these package together. It’s been like putting together two Budgets in less than ten days, with the first fiscal stimulus package and tonight’s second package which has gone through the Parliament and together with the work in between. People have been working so hard and not only have our public servants been working hard but we know our teachers and we know our health professionals and we know our medical researchers and we know some of our people in the retail sector have borne the brunt of the frustration of some Australians. But to all Australians we say tonight, we are with you. There are some challenges ahead but we will get through it and tonight the Parliament was united. I want to pay credit to the opposition for the support that they gave to help us get these Bills through in such a timely manner.
QUESTION:
Treasurer, can I just ask about BAS bills, would you consider waiving them?
JOSH FRYDENBERG:
Well obviously there are special arrangements that the Tax Office is making in the event of the individual circumstances of businesses in terms of company tax instalments for the back half of last year, for example, that they can get refunds for those in the event they don’t think they’re going to be turning a profit over the course of this financial year. Those measures have been available since the 12th March. So we have already put those in place very quickly with the Australian Tax Office. But we continue to identify other areas where we can work closely to support the businesses and the households that are in need, whether you’re an energy company, whether you’re a landlord, whether you’re a bank, I know that a great effort has been made to show a generosity of spirit to those people who may find it very difficult to meet their bills at this time.
QUESTION:
So is there any truth to the report tonight in the Australian that temporary migrants in tourism and hospitality could be able to access the coronavirus supplement?
JOSH FRYDENBERG:
Our focus has been on permanent residents and those who are on the pathway to citizenship.
Thank you very much.