TOM:
A huge announcement yesterday $130 billion on this Job keeper program so what does success look like?
MINISTER SUKKAR:
Well Tom it’s an extraordinary announcement for an extraordinary times and look, success in this instance, looks like connecting and keeping more employees connected to their employer. Treasury estimates 6 million employees will be taking up the job keeper allowance of $1500 a fortnight.
Importantly it will keep them engaged or keep them connected to their employers and we hope it will mean Australia is in the best possible position to take advantage of the uptick in the economy that we are confident we will see once we get through the Coronavirus health crisis. Importantly helping keep those small businesses those medium businesses and large businesses indeed, engaged and ready to go when that happens.
TOM:
Obviously there’s a huge amount of money and we’re assuming there was modelling done, statistics poured over. What do you think you can keep unemployment to? What can you limit that ticking up to?
MINISTER SUKKAR:
Well Tom, there’s no point speculating on that at the moment. This is a health crisis that has huge economic dimensions that’s moving extraordinarily quickly. What we are doing though is every possible thing we can.
Firstly to improve the safety net, keeping businesses alive to the greatest extent possible. Now through the job keeper payment, keeping people engaged with their employer.
There’s no doubt there is going to be many of many hundreds of thousands of people who would have lost their jobs that now won’t. I don’t see any point speculating on what those numbers could be. At the moment we are in the middle of a health crisis with significant economic dimensions. We are here, the Morrison government, to keep as many people employed as possible.
As you’ve seen yesterday with the $130 billion announcement which is on top of a range of other packages, that we’re throwing everything we can to keep people employed and to keep the economy in a shape that when we get through this we’re best placed to take advantage on the other side.
TOM:
The payment goes to the employer and then on to the employee. Is there tax payable for that employee?
MINISTER SUKKAR:
It’s taxable, you’ve got to remember that this is the first $1500 that’s been guaranteed by the government in many cases, employees will be paid more than that. This is obviously a significant guarantee that reduces that burden for businesses but it has to be paid to the employee and it’s a taxable amount as any other is.
TOM:
It’s a huge amount of money. Was there any pause for thought, as a government and one that came in wanting to reduce debt, to shovel this much extra money out on top of other money spent?
MINISTER SUKKAR:
Tom, of course there was pause for thought. Of course we have been methodical in each decision we’ve taken.
Whether it was the first $17 billion package. The $66 billion package, the $105 billion to support our banking system and now obviously the $130 billion package. We have thought very deeply about these issues and there is no doubt that this is debt that we will be paying for a very long time. In our view, keeping people employed, keeping the businesses that employ them in a shape that they are there to at least be there on the other side of this crisis is much more important.
Tom in our perspective there are times like this where extraordinary unprecedented times like this we have to suspend ideology and do what’s in the best interests of Australians and that’s what we’ve done here. We are confident that this is going to put us in the best possible shape looking at all our international counterparts but putting us in the best possible shape to take advantage of the inevitable upside that will arrive eventually once we get through this health crisis.
TOM:
A few of your regular critics are giving it the thumbs up so I suppose it’s not always what you judge things on Michael Sukkar, but I’m sure it’s of some pleasure for the government.
Just want to ask you as well, huge income tax cuts are scheduled to come in, are they still guaranteed?
MINISTER SUKKAR:
Yeah our broad economic plan Tom, remains in place. I can tell you right now, now is not the right time to be walking away from more money in people’s pockets. Obviously we’ve announced two $750 payments, the first is which is starting to be paid today. In addition to the Coronavirus supplement of $550 that supplements the job seeker payment.
Now obviously this Job Keeper payment, which really strengthens our safety net. The last thing the government would be doing anything that is taking money out of people’s pockets this is why our broader economic plan of reducing taxes – of course we’re committed to. People are going to need every single one of those dollars in tax cuts and that’s why we’ve delivered them.
TOM:
And just finally you mentioned a much bigger debt at the end of this and to pay it off over many years. Is everything on the table, in terms of that approach, including tax concessions, negative gearing for example will you look at all options to be able to pay that off so it’s not just about spending cuts.
MINISTER SUKKAR:
Well Tom, What the Prime Minister and Treasurer showed last year with the first balanced budget in 11 years is if we get the settings right if we focus jobs growth, focus on economic growth you are able to get back into a strong budget position through a strong economy. That’s what we’re focusing on now, how do we maintain as much strength in our economy in extraordinary times, at a time when large sways of the economy have been shut down for health reasons. So our focus will be and will continue to be, how do we keep people employed, how do we keep businesses in business and how do we therefore grow the economy because I think that’s always the high road back to budget health. We’ve done it before and I’m confident we’ll be able to do it again in the future.
TOM:
There was also a debt and deficit levy though, is that something that will have to be in place possibly for a very long time and not just high income earners paying it?
MINISTER SUKKAR:
Tom, I think you are getting a bit ahead of yourself. We are in the middle of the most unprecedented health crisis that has huge economic dimensions in any of our lifetimes, in fact for 100 years. We’re focused on now on how we can ensure that we’ve got a strong safety net for those people impacted.
How we can keep people connected to their workplaces, how we can keep their employees business in business and that is our focus, we are in the middle of it and I don’t think it serves us well to think too far into the future because we’ve got work to do for the Australian people to address this crisis.
That’s what we’re doing, we’ve shown we’re willing to work day and night to deliver these things and we’ll continue to monitor the situation but or course in the long run Tom, we are looking at and will always consider ways that we can keep our economy strong, sustainable in the greatest traditions of Coalition Governments.
TOM:
I think we’ll have voters of all stripes right now hoping this plan does work, Michael Sukkar, Assistant Treasurer appreciate your time today.
MINISTER SUKKAR:
Thank you Tom.