Monique Wright:
Assistant Treasurer, Michael Sukkar, joins us now. Good morning to you, thanks for being with us.
Minister Sukkar:
Good morning, Monique. Thank you.
Monique Wright:
Households have built up this really large savings buffer, haven’t they? What is driving these figures?
Minister Sukkar:
Well, Monique, clearly during the pandemic, Australians bunkered down to some degree, when the pandemic hit. Also, a range of areas where we would ordinarily spend our discretionary funds, whether that be on international travel or indeed on other travel, that has been curtailed. Also, Australians, through the economic support provided by JobKeeper, HomeBuilder, so many other programs that the government put in place and of course, the support that we provided to businesses – both large and small – in keeping people in jobs, keeping businesses going meant that people were able to put that extra money away in their offset account. As you say, more than $50 billion into people’s offset accounts, more than $170 billion in addition to that in other savings accounts, which basically means there’s a lot of power there in the Australian economy and in households that is there to be released. Australians are seeing confidence returning. Yes, we’re dealing with the Omicron variant at the moment, but Australia’s economic recovery is leading the world – unemployment at 4.6 per cent. All these factors, Monique, I think mean that that savings buffer will provide a great foundation for a further economic recovery.
Monique Wright:
Yes, but if people are saving and not spending, that’s going to have a big impact on the economy. That on top of the fact that businesses are saying that the impact of exploding case numbers and staff shortages is like a lockdown?
Minister Sukkar:
Well, Monique, obviously these sorts of questions rely on a range of factors and confidence is one of them. We saw leading up to Christmas, confidence returning. We’ve seen a few issues with Omicron since then and we’re seeing some early data that shows some of the issues that have been caused by Omicron over the last six weeks. But if you look at the trajectory of the Australian economy over the last few months as we’ve reopened, that trajectory is promising and, as I say, the extra savings buffer that now is sitting with households means that that can be used in other parts of the economy when discretionary spending returns even more than it already has. There’s still bumps in the road no doubt, Monique, but as I say this is a great foundation to further support the economic recovery. Of course, for your average household who, through the pandemic, has been able to hold onto their jobs, that they’re now paying less in interest because obviously their loan repayments are reduced by the amount that they’ve got sitting in their offset accounts.
Monique Wright:
Yes, okay. We’ve got to get through those bumps in the road. Just quickly before we let you go, Novak Djokovic faces court today, Assistant Treasurer. Has the government completely bungled this?
Minister Sukkar:
Not at all, Monique. The reality is we have to dispassionately ensure that the integrities of our borders are upheld. Whether you’re an international tennis player, whether you’re an ordinary person trying to enter our country, there’s one rule for all regardless of who you are. We apply them dispassionately; Australian Border Force applies them dispassionately and I don’t think any Australians would be surprised to see the Morrison Government taking the protection of our borders so seriously regardless of who you are. One rule for all, that’s really the underlying principle, Monique.
Monique Wright:
All right. All eyes will be on that court today. Thanks so much, Michael.
Minister Sukkar:
Good on you. Thanks so much.