Warren Entsch (Leichhardt, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on the Morrison government's response to the economic impacts of the coronavirus pandemic and outline how the government is building a bridge to recovery?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Leichhardt for his question, and acknowledge that in his electorate around half of his local economy is supported by tourism: the Great Barrier Reef and other wonderful national parks. The impact of the coronavirus has been devastating on Australia's tourism sector, not just because the international borders have been closed but also because of the restrictions and limitations on domestic travel. So our thoughts are with the people of Leichhardt, as they are with Australians right around the country.

We are in the midst of a hundred-year event with the coronavirus. It's a health and an economic shock like this country has ever seen before. The fact is that some four million people globally have contracted the virus: 280,000 lives have been lost. In the United States, 80,000 lives have been lost and in the United Kingdom 31,000 lives have been lost. Tragically, 97 people have lost their lives here in Australia but, through our early response and the wonderful work by our health professionals and our health system, we haven't had the same number of cases as many other comparable nations.

In terms of the economic shock: it's been significant, with the Australian Treasury forecasting GDP to fall by around 10 per cent in the June quarter—the largest fall on record—and unemployment to reach around 10 per cent, a doubling of the unemployment rate. Our response has been comprehensive in scale and in scope, and is unprecedented in terms of the amount of fiscal financial support that is making its way into Australian households and Australian businesses.

Our JobKeeper program has seen 5½ million employees to date be covered by those businesses that are formally enrolled in that program. Our cashflow boost, a $32 billion program, has already seen over $8½ billion go out the door to nearly 500,000 businesses. Our $750 cash payment has seen $5.2 billion go to seven million Australians on income support—pensioners, people with a Commonwealth seniors health card, disability support pensioners, veterans and those on family tax benefits. And we've also given people access to their own money through the super system, and some $11 billion has been accessed, tax-free, by the Australian people. And the progress that was made by the national cabinet to see a gradual easing of restrictions has been estimated to contribute over $9 billion a month to the Australian economy.

So Australians need to follow the health advice and Australians need to get back to work, and that will be good news for the Australian economy.

Clare O'Neil (Hotham, Australian Labor Party, Shadow Minister for Innovation, Technology and the Future of Work) Share this | Link to this | Hansard source

My question is to the Prime Minister. Why does the Prime Minister say the economy will snap back after the coronavirus crisis when the Reserve Bank is forecasting unemployment as high as nine per cent at Christmas?

Scott Morrison (Cook, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I would have to correct the member. She may not have read the transcript carefully of those comments that were made back in April. What I was referring to was the other side of the six-month period, and that was the change that would need to occur regarding the temporary measures we've put in place for JobKeeper and for businesses to be able to restart.

And that is certainly my hope. But back in April there was the knowledge of economic issues as they were at that time, and that has changed since then—there is no doubt about that—and references made to the Reserve Bank governor. The Reserve Bank governor was with the Treasurer in Saudi Arabia early this year—

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

In February.

Scott Morrison (Cook, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

In February of this year. Even at that time, the full implications of the COVID-19 crisis were not known. Some weeks later the outlook in relation to the nature of the recovery that would occur had changed dramatically: it had gone from a V-shape to a U-shape. And it is still not clear.

The opposition, of course, is at liberty to go back and refer to comments that were made back in April, and that is fine, but they cannot do so without adding the further context of the statements that the government has made since that time, taking into account more recent information.

But I can say this: I am looking forward to the time—and, under our policies, we'll be moving there as quickly as we can—where businesses can reopen, because that is the objective, and when employees can come back into their businesses and when children will be back in all of their schools, getting their lessons in the classroom.

Dan Tehan (Wannon, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

That's good news!

Scott Morrison (Cook, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

That is good news!

I know businesses want to be able to do that, to go back into the arrangements they were in before, as soon as they can. That is the point of the reopening of the economy. And I would caution this chamber about getting complacent about the challenge that is still ahead. Australians right now are still facing an economy in which many are without employment, where businesses are still closed. And while it is important to look ahead, right now our government remains very focused—right here, right now—on the needs of Australians and the economic pain they are going through.

That's why the JobKeeper program is in place. That's why the Jobseeker program is in place. That's why the cashflow assistance is in place. That's why we've relaxed restrictions so that those who have had a shock to their income can access their own savings, their own money, at a time when they really need it, to help them get through. It is a point that I know those opposite disagree with, but it's one that is helping Australians to get through. Our focus is building that bridge. Our focus has been to work with premiers and chief ministers around the country to have a coordinated plan to get Australia through what is one of our most difficult times. So, the opposition might want to pick on this word or that word. They are entitled to do those things. They can look at my words. They can look at their own words. They can look at anyone's words. What I'm looking at is the need to get Australians back into work. (Time expired)